The share price of this leading government-based firm engaged in the business of providing financial services surged by 13 percent to an intraday high of Rs 79 per share on Monday after the Government Of India increased stake in the company.
Share price movement: With a market capitalization of Rs 19,769 crores, the shares of Industrial Finance Corporation of India Limited (IFCI) surged around 9 percent and closed at Rs 75.64 per share. The shares of this company generated both multi-bagger returns of 485 percent over the past year and 131 percent over the past 6 months.
What happened: According to IFCI Limited’s BSE’s shareholding pattern, the government of India has increased its stakes in the company from 1.75 crore equity shares or 70.32 percent holding in March 2024 to 1.87 crore shares or a 71.72 percent holding in April 2024.
Financials: Reviewing the financials of IFCI Limited on a year-on-year basis, the revenues rose by 33 percent from Rs 1,490 crores in FY23 to Rs 1,987 crores in FY24. In the same time frame, the net profits of the firm witnessed a transition from a net loss of Rs 120 crores to a net profit of Rs 241 crores.
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Ratios: In terms of margin ratios for the year 2024, it has reported a gross profit margin of 70.46 percent and a net profit margin of 12.13 percent. The debt-to-equity ratio of the firm stood at 1.18 times for the same period.
Borrowings and cash flow from operations: The Borrowings of IFCI Limited decreased by 10 percent from Rs 6,020 crores in FY23 to Rs 5,367 crores in FY24. The cash flow from operations witnessed a transition from a negative cash flow of Rs 336 crores to a positive cash flow of Rs 12 crores for the same period.
Revenue break up: The revenue break up of IFICI Limited as of 9MFY24 stood at 18 percent from interest income, 23 percent from dividend income, 27 percent from fee and commission, and 23 percent from the sale of service.
Projects financed: IFCI Limited has provided financial assistance to various projects such as Adani Mundra ports, GMR Goa International Airport, Salasar Highways, NRSS Transmission, Raichur Power Corporation, etc.
Shareholding Pattern: As of April 2024, IFCI Limited’s shareholding pattern stood at 71.72 percent for the government of India (promotor), 20.33 percent for the public, 2.31 percent for foreign institutional investors, and 1.94 percent for domestic institutional investors.
About the Company: Incorporated in 1993, Industrial Finance Corporation of India Ltd (IFCI Ltd) is an Indian government-owned non-banking finance company established to cater to the long-term finance needs of the industrial sector. The company is engaged in project financing, infrastructure development, debt and equity underwriting and syndication, venture capital, stock broking and merchant banking, factoring, asset reconstruction, etc.
Written By Zahal
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