IFCI (IFCI) Q4 98/99 earnings summary

Executive summary

• FY1998-99 total income rose to Rs.28,885.13 million from Rs.26,016.99 million; profit after tax was Rs.235.01 million, compared with Rs.3,705 million in FY1997-98.

• Assistance sanctions increased to Rs.86,838 million for 242 projects, while disbursements fell to Rs.47,495 million.

Financial highlights

• Income from operations was Rs.28,019.27 million, up from Rs.25,851.21 million; other income was Rs.865.86 million versus Rs.165.78 million.

• Reported profit before tax was Rs.235.01 million, compared with Rs.4,545 million in FY1997-98; profit after tax was Rs.235.01 million versus Rs.3,705 million.

• Total assets increased 11.1% to Rs.218,997.9 million; loans were Rs.178,418.43 million and investments Rs.27,447.41 million at March 31, 1999.

• Recommended equity dividend was 10% for FY1998-99.

Outlook and guidance

• Project finance expected to remain the core business, with potential longer-term evolution toward universal banking focused on corporate banking.

• Diversification under consideration included insurance through a foreign-partner JV, bill discounting, trade-bill financing and working-capital finance.

• Growth-industry priorities included infrastructure, IT, telecom, hydrocarbons, consumer goods, tourism, pharmaceuticals and related activities; further exposure to selected traditional industries would be selective.

• A proposed Rs.35.3 billion rights issue was intended to strengthen equity and leverage capacity; timing depended on market conditions.