IFCI (IFCI) Q4 97/98 earnings summary

Executive summary

• FY1997-98 sanctions rose 52.3% to Rs 10,983 crore and disbursements increased 9.6% to Rs 5,650 crore; profit after tax eased to Rs 370.50 crore from Rs 378.56 crore.

• Asset creation accounted for 88.7% of sanctions and 87.2% of disbursements; assistance was diversified, with no industry above 15% of outstanding assistance.

Financial highlights

• Total income was Rs 2,734.00 crore vs Rs 2,582.41 crore; profit before tax was Rs 454.50 crore vs Rs 462.56 crore, and profit after tax was Rs 370.50 crore vs Rs 378.56 crore.

• Tax provision held at Rs 84 crore; proposed dividend on equity and preference shares totaled Rs 112.84 crore, with corporate dividend tax of Rs 11.29 crore.

• Total assets reached Rs 20,969 crore, up 19.9%; loans to assisted concerns were Rs 16,423.34 crore and investments Rs 2,090.81 crore at 31 March 1998.

• Administrative expenses remained at the prior-year level; net profit declined following lower lending yields and significant bad-debt provisions under RBI guidelines.

Outlook and guidance

• Government measures in H1 FY1998-99 to stimulate investment, revive capital markets, promote exports and encourage foreign investment were expected to improve industry and financial-sector prospects in H2.

• Intensified recovery and overdue follow-up efforts were expected to support results in coming years.