IFCI Q2 net profit declines by 48%

IFCI Q2 net profit declines by 48%


Mumbai: Country’s oldest financial institution IFCI today reported a net profit of Rs259 crore for the second quarter ended 30 September, a decline of 48% over the corresponding period a year ago.

The company had a net profit of Rs497.29 crore in the second quarter of FY’08, IFCI said in a filing on the Bombay Stock Exchange.

At the same time, total income of the company also dipped by 26% to Rs441.7 crore in the quarter under review from Rs595 crore in the same quarter a year ago.

However, other incomes have improved substantially to Rs58.65 crore compared to Rs4 crore earned during the second quarter last year.

The company also informed that the shareholders at the AGM last month approved reduction of share capital for aligning stake of LIC to 8.39%.

LIC had, earlier, approached the IFCI management to lower its holding from 11.39 % to 8.39%, the level it held prior to conversion of its debt into equity last year.

The company need to add fresh asset of Rs2,000 crore to be able to maintain the bottomline, IFCI CEO Atul Rai had said.

In addition, recovery from non performing assets would add about Rs600 crore to the bottomline of which write back may be little less than that, he had said.

IFCI which had made NPA recovery of about Rs700 crore, had posted a net profit of Rs1,020 crore during 2007-08.

IFCI shares were trading at Rs28.55 down by 1.55% on the BSE.