IFCI (IFCI) Q4 99/00 earnings summary

Executive summary

• FY1999-2000 net profit rose to Rs.593.71 million from Rs.235.01 million, while total income increased to Rs.29,652.47 million from Rs.28,885.13 million; auditor qualifications materially affect the reported profit figure.

• Operations shifted toward portfolio consolidation, borrower restructuring and tighter selectivity as new project activity slowed and non-performing assets remained high.

Financial highlights

• Total income was Rs.29,652.47 million vs. Rs.28,885.13 million; operating income was Rs.28,981.87 million vs. Rs.28,019.27 million.

• Reported PBT and PAT were each Rs.593.71 million, up from Rs.235.01 million; no tax provision appears in the presented P&L.

• Cost of borrowings rose to Rs.25,357.36 million from Rs.23,683.82 million; provisions and write-offs for bad and doubtful loans/investments totaled Rs.4,069.16 million before reserve adjustments.

Outlook and guidance

• FY2000-01 sanction and disbursement budgets were Rs.20,000 million and Rs.22,500 million, respectively; outstanding commitments were expected to draw down over the next 1–2 years.

• Management aimed to keep total outstanding assistance near current levels for 1–2 years while rebalancing industry and product mix.

• Economic outlook anticipated GDP growth near 6% and industrial growth near 7% in FY2000-01, assuming normal rainfall; inflation was expected to remain in single digits.