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India Infrastructure Finance Company Ltd (IIFCL) on Monday reported a two-fold jump in standalone net profit to Rs 1,076 crore for the fiscal ended March 2023 aided by an increase in lending and reduction of bad loans.
The state-owned infrastructure finance company had earned a net profit of Rs 514 crore in the previous fiscal.
The company recorded the highest ever profit, recovery, sanction and disbursement furthering turnaround performance that began three years ago, IIFCL managing director PR Jaishankar said while announcing annual financial numbers.
The company continued to add value as its networth increased to Rs 12,878 crore in 2023-23 from Rs 11,737 crore in the preceding fiscal.
During the year, he said, the company posted record performance with the highest-ever sanctions and disbursements at Rs 29,171 crore and Rs 13,826 crore, respectively.
The cumulative sanctions and disbursements stood at Rs 2,13,378 crore and Rs 1,05,647 crore as of March 31, 2023.
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Going forward, he said, the company has significant scope to further improve sanctions and disbursement, given the government's focus on infrastructure development.
To fund business growth, he said the company plans to raise over Rs 16,000 crore during the current financial year.
With regard to asset quality, IIFCL has brought down gross non-performing assets (NPAs) to 4.76 per cent from 9.22 per cent a year ago.
The net NPA of the company too declined to 1.41 per cent from 3.44 per cent in the year-ago period.
The provision coverage ratio (PCR) in the last fiscal increased to 70.48 per cent from 62.75 per cent, thereby, improving the robustness of the company's balance sheet, Jaishankar said.
The company's stance of aggressively pursuing recoveries has yielded the highest ever recovery of around Rs 1,349 crore during FY 2022-23 compared to Rs 780 crore during the previous fiscal, he added.
Under the strategic course of action to improve IIFCL's asset quality and boost the availability of longer-tenor debt finance for infrastructure projects, IIFCL ventured into investment in infrastructure Bonds in FY 2021-22 with Rs 975 crore in project bonds and Rs 325 crore in bonds issued by a renewable energy InvIT.
The company recorded a substantial increase in the investments made in bonds and InvITs of Rs 6,200 crore and Rs. 6,800 crore respectively, aggregating to Rs 13,000 crore as on March 31, 2023.
Till March 2023, Jaishankar said, IIFCL has participated in 690 projects with a total outlay of over Rs 12 lakh crore.
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