IDFC records highest profit

Our Corporate Bureau
21 June 2004

Chennai: At its seventh annual general meeting held on June 17, 2004, the shareholders of Infrastructure Development Finance Company Limited (IDFC) approved a dividend at the rate of 10 per cent Re1 per equity share.

In FY 2004, IDFC recorded its highest approvals and disbursements of Rs5,727 crore for 81 projects and Rs2,704 crore for 59 projects, respectively. This represented an increase of 149 per cent and 185 per cent respectively over approvals and disbursements in the previous financial year (approvals of Rs2,304 crore for twenty-four projects and disbursements of Rs949 crore for twenty-nine projects). On a cumulative basis, as on March 31, 2004, IDFC's gross approvals were Rs18,187 crore for 156 projects and gross disbursements were Rs6,878 crore for 87 projects. The approvals net of cancellations were Rs11,456 crore and the outstanding disbursements were Rs5,161 crore.

Total income and profitability of IDFC in FY 2004 were the highest ever. Total income increased by 39 per cent to Rs637.08 crore from Rs458.87 crore in the previous financial year (FY 2003). Profit before tax (PBT) in FY 2004 increased by 36 per cent to Rs271.95 crore from Rs200.40 crore in FY 2003. After providing Rs12.80 crore for tax, the profit after tax (PAT) in FY 2004 increased by 44 per cent to Rs259.15 crore from Rs179.95 crore in FY 2003. In FY 2004, operating income as a percentage of total income was 84 per cent. Expenses increased by 41 per cent to Rs365.13 crore, primarily on account of higher provisions and contingencies and interest charges.

After appropriations, the balance carried forward in FY 2004 was Rs302.08 crore and the net worth of the company, as on March 31, 2004, stood at Rs1,699 crore.

During the year, IDFC raised resources of Rs3,575 crore from the market and on a cumulative basis, as on March 31, 2004, outstanding resources (excluding subordinated debt) were Rs3,325 crore. CRISIL and ICRA have awarded the highest ratings to the various borrowing programs of IDFC and resources have always been raised at benchmark rates.

The balance sheet size, as on March 31, 2004, was close to Rs6,000 crore. There were no net NPAs as on March 31, 2004, and IDFC's capital adequacy was well above prudential exposure norms.