IFCI to beef up treasury operations

K.R.Srivats New Delhi | Updated on April 29, 2014 Published on April 29, 2014

Profits for 2013-14 jump 13%

Betting big on treasury operations to bolster its profit growth, State-owned IFCI Ltd has set for itself a bottomline target of ₹750 crore for the current fiscal.

This translates to a 47 per cent increase over the standalone net profit of ₹508 crore recorded in 2012-13.

“Our bottomline target of ₹750 crore is doable. We expect as much as ₹200 crore out of the ₹750 crore to come from treasury operations,” Malay Mukherjee, CEO and Managing Director, IFCI, said here on Tuesday after announcing the financial results for the year ended March 2014.

Mukherjee said treasury operations so far contributed little to IFCI’s overall bottomline performance, adding that the situation would get corrected this fiscal. “At today’s board meeting, we have decided to beef up our treasury operations and aim for at least ₹200 crore profits from the treasury”. There were also ample opportunities for IFCI to unlock value from several of its investments, he added.

The Board of Directors of IFCI on Tuesday declared a dividend of 10 per cent for 2013-14, Mukherjee said, adding that the dividend rate was 10 per cent for 2012-13.

IFCI’s total operational income for the quarter ended March 2014 stood at ₹801 crore, a 13 per cent increase over ₹711 crore recorded in same quarter last fiscal. Mukherjee said IFCI had effectively done business only for seven months in 2013-14. “Given that the business momentum achieved in those seven months is expected to be there for the full year this fiscal, it would not be difficult to achieve our bottomline target for 2014-15,” he said.

For 2013-14, IFCI reported a net profit of ₹508 crore, a 13 per cent jump over ₹451 crore recorded last year. IFCI would have reported a much higher net profit for 2013-14 but for its conscious decision to go in for a larger provisioning of ₹520 crore (₹165 crore), said a senior IFCI official..

Published on April 29, 2014
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