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Informist, Monday, Oct. 7, 2024

 

 

--IIFCL MD: See FY25 net profit rising 20% on year on high loan growth

--IIFCL MD: Aim to disburse loans worth INR 250 bln in FY25

--IIFCL MD: Aim to sanction loans worth INR 450 bln in FY25

--IIFCL MD: Sanctioned, disbursed 50% of FY25 loan target by Sept end 

--IIFCL MD: Intend to foray into affordable housing loans in FY25

 

By Priyasmita Dutta and Sagar Sen

 

NEW DELHI – India Infrastructure Finance Co. Ltd.'s net profit for 2024-25 (Apr-Mar) is likely to be 20% higher on year owing to a steady growth in credit disbursement, Managing Director P.R. Jaishankar said. In FY24, the company had posted a 44% increase in net profit to INR 15.52 billion. Back-of-the-envelope calculations show the infrastructure financier will likely post a net profit of about INR 18.62 billion in FY25.

 

"We expect the same upward trend in profits to continue but not as high as 44% on-year growth because the base is growing and as the base grows, the percentage will taper," Jaishankar told Informist in an interaction.

 

Set up in 2006, IIFCL provides long-term financial assistance to infrastructure projects.

 

The expectation of healthy growth in profit is on the back of robust loan disbursements during the first half of the year, which is expected to continue in Oct-Mar, Jaishankar said. The lender had set itself an internal target of disbursing loans worth INR 250 billion in FY25 and Jaishankar said around half that had been achieved by the end of September. Similarly, the company’s loan sanctions in Apr-Sept were half-way to the internal target of INR 450 billion for FY25.

 

IIFCL had sanctioned loans amounting to INR 423 billion in FY24, up 45% from INR 291.71 billion in FY23. Disbursals in FY24 amounted to INR 223.56 billion, up 62% on year.

 

IIFCL's financial results assume significance in the backdrop of the company considering getting listed in the current financial year. "While we still have the plan, we are yet to decide the timing," Jaishankar said.

 

Earlier, a senior company official had said that the listing would likely happen once the company's profits cross INR 20 billion, which was expected in FY25 itself. Jaishankar said the infrastructure lender is "very near" to the INR 20 billion net profit. "We need to finalise our own internal plans before we go for this," Jaishankar said, referring to the listing plans.

 

As for the company's future business plans, Jaishankar said IIFCL plans to enter the affordable housing space in public-private partnership mode. "It (affordable housing) is defined as an infrastructure sector on the harmonised list. IIFCL has been into almost all the sub-sectors of the harmonised list of infrastructure sectors, and we definitely feel housing is a very important constituent as far as the overall economy is concerned," he said.

 

With some proposals already at its door, IIFCL is in a position to begin its foray into affordable housing in FY25 itself. "We have already seen some successful models being done in the east. The southern part has to still pick up the public-private partnership mode of affordable housing. So I think the present concentration is in the west and north," Jaishankar said.  End

 

Edited by Akul Nishant Akhoury

 

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