Item 2
ICICI Limited
PERFORMANCE REVIEW - FY1999-2000
The Board of Directors of ICICI at its meeting held in Mumbai today, approved
the audited accounts of ICICI (NYSE: IC and IC.d) for the financial year ended
March 31, 2000 ("FY1999-2000").
Results - Indian GAAP : 41% increase in Q4 Profit after Tax
Profit after tax for Q4:99-2000 increased 41% to Rs. 3.95 billion compared to
Rs. 2.80 billion in the corresponding quarter of the previous year. During
FY1999-2000, profit before tax and provisions increased 28% to Rs. 20.18
billion from Rs. 15.74 billion in the previous year. Notwithstanding the
enhanced provisions and write-offs of Rs. 6.90 billion (Rs. 4.78 billion in the
previous year), profit after tax amounted to Rs. 12.06 billion in FY1999-2000.
This represented an increase of 21% over the corresponding figure of Rs. 10.01
billion in the previous year.
The Directors have proposed a dividend rate of 55% (Rs. 5.50 per share of Rs.
10/- each) for FY1999-2000 including the interim dividend of 45% declared on
March 17, 2000. The summary of the financial statements as per Indian GAAP at
March 31, 2000 is enclosed.
Results - US GAAP : 30% increase in Q4 Net Income
The Board of Directors of ICICI also considered the consolidated US GAAP
financial statements of ICICI for the financial year ended March 31, 2000.
Net income as per US GAAP for Q4:99-2000 increased 30% to Rs. 2.39 billion (US$
55 million) compared to Rs. 1.84 billion (US$ 42 million) in the corresponding
quarter of the previous year. Net income as per US GAAP for the year ended
March 31, 2000 increased 26% to Rs. 9.08 billion (US$ 207 million) from Rs.
7.23 billion (US$ 166 million) in the previous year. Net income for the year
ended March 31, 2000 includes a non-recurring expense of Rs. 0.27 billion (US$
6 million) on account of the Voluntary Retirement Scheme. Net income for these
periods excludes extraordinary income and cumulative effect of change in
accounting policy. Stockholders' equity as per US GAAP increased 94% during the
year to Rs. 70.91 billion (US$ 1.6 billion) at March 31, 2000.
Business Operations : Loan approvals up 37%
During the year ended March 31, 2000, ICICI's approvals increased 37% to Rs.
444.79 billion compared to Rs. 323.71 billion in the previous year. During the
same period, ICICI's disbursements increased 34% to Rs. 258.36 billion compared
to Rs. 192.25 billion in the previous year.
ICICI launched a number of pioneering financial products including intangible
asset financing in the form of `brand financing' and floating rate leases.
ICICI's customized approach to specific client requirements has helped it to
forge relationships with several leading PSU and multinational clients. While
the infrastructure and oil & gas sectors aggregated 42% and 36% of approvals
and disbursements respectively, non-project corporate finance assistance
accounted for 41% and 47% of approvals and disbursements respectively.
Asset Quality : Decline in net NPA ratio to 7.6% at March 31, 2000 from 8.1% at
March 31, 1999
ICICI's net NPA ratio as per Indian GAAP declined to 7.6% at March 31, 2000
from 8.1% at March 31, 1999. Net NPA ratio as per US GAAP was 6.2% at March 31,
2000, down from 6.3% at March 31, 1999. During the year, Indian industry
witnessed a recovery from the cyclical downturn of the previous two years and
several key sectors of the economy were able to achieve significant growth.
ICICI continued to focus on its initiatives in respect of recovery and
settlements of problem cases. During the year under review, ICICI settled dues
aggregating Rs. 5.15 from 112 cases (Rs. 3.80
billion from 100 cases in previous year). The present value of principal dues
settled was about 76% during this period.
e-Commerce initiatives
ICICI's e-commerce focus revolves around web-enabling existing businesses,
entering non-traditional high-growth businesses and investing in dot.com
companies. ICICI has launched ICICIDirect.com, India's leading stock trading
service, with over 20,000 registrations, which offers customers a single-click,
hassle free investment experience by seamlessly integrating the customer's
brokerage account, savings account and depository account. ICICI has also
launched a pioneering closed loop, Internet-based supply chain management
solution, which links corporate clients with their vendors and suppliers, and
is developing an open payment gateway.
Retail Business : Impressive market share gains
The year under review was marked by ICICI consolidating its presence in retail
asset businesses with market share gains in home loans, auto loans and consumer
durable loans. Home loans were made available at 13 geographically diverse
locations, auto loans in 19 locations and consumer-durable loans at 24
locations. ICICI expanded its retail offering through the launch of additional
retail asset products including dealer financing and commercial vehicle loans.
Further, ICICI also opened four state-of-the-art Call Centers during the year
and 75 ICICI Centres (thin physical distribution points) to complement ICICI's
electronic distribution channels.
Resources
During the year under review, ICICI mobilised rupee resources of about Rs.
158.72 billion. Of this about Rs. 25.75 billion was raised through seven public
issues of bonds to about 1 million retail investors.
Equity Issue
ICICI successfully completed a three-tier equity offering amounting to about
US$ 500 million in September 1999. ICICI became the first Indian company to be
listed on the New York Stock Exchange with its US$ 315 American Depositary
Shares offering. Equity shares outstanding increased 64% to 785 million at
March 31, 2000 from 480 million at March 31, 1999.
Capital Adequacy
Total capital adequacy ratio, as per Indian GAAP, increased to 17.1% at March
31, 2000 compared to 12.5% at March 31, 1999. Tier-1 capital adequacy ratio
increased to 11.4% from 8.3% at March 31, 1999.
Performance of Subsidiaries
ICICI Bank's net profit in FY1999-2000 increased 66% to Rs. 1.05 billion from
Rs. 0.63 billion in the previous year. Profit after tax of ICICI Securities in
FY1999-2000 increased 263% to Rs. 0.72 billion from Rs. 0.20 billion in the
previous year. Profit after tax of ICICI Infotech in FY1999-2000 increased 249%
to Rs. 0.11 billion from Rs. 0.03 billion in the previous year. ICICI Venture
registered more than 500% rise in profits in FY1999-2000 to Rs. 0.38 billion
from Rs. 0.06 billion in the previous year.
Summary Profit and Loss Statement (Indian GAAP)
Rs. crore
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Q4: Q4: Growth Growth
1998-99 1999-00 % FY 1999 FY 2000 %
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Fund based income 1,888 2,242 18.7 7,033 8,308 18.1
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Less: Interest and
depreciation charges 1,510 1,613 6.8 5,638 6,372 13.0
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Net fund based income 378 629 66.3 1,395 1,936 38.8
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Add: Fees and commissions 136 119 (12.6) 311 324 4.1
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Net income from operations 514 748 45.4 1,706 2,260 32.4
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Less: Operating expenses 69 84 21.6 224 297 32.6
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Profit from operations 446 664 49.0 1,482 1,963 32.4
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Add: Other income 34 19 (44.4) 92 55 (40.1)
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Profit before provisions
and tax 479 683 42.4 1,574 2,018 28.2
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Less: Provisions and
write-offs 176 255 44.1 478 690 44.2
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- For loans & debentures 122 138 12.1 364 462 27.0
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- For investments 54 117 116.7 114 228 98.8
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Profit before tax 303 428 41.4 1,096 1,328 21.2
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Less: Provision for tax 23 33 48.9 95 122 28.4
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Profit after tax (1) 280 395 40.9 1,001 1,206 20.5
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(1) Including extraordinary gain of Rs. 19 crore from sale of real estate in FY2000.
Summary Balance Sheet (Indian GAAP)
Rs. crore
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Mar 31, 1999 Mar 31, 2000 Growth %
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Net loans and debentures 42,211 48,299 14.4
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Other Investments 2,598 3,075 18.4
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Current assets 9,685 9,171 (5.3)
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Fixed assets 3,734 4,499 20.5
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Miscellaneous expenditure 319 346 8.2
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Total assets 58,547 65,390 11.7
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Shareholders' equity and reserves 5,135 8,023 56.2
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Of which : Equity capital 480 783 63.1
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Preference capital 1,383 1,308 (5.4)
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Borrowings 47,659 50,881 6.8
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Current liabilities 4,370 5,178 18.5
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Total liabilities 58,547 65,390 11.7
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Except for the historical information contained herein, statements in this
release which contain words or phrases such as "will", "aim", "will likely
result", "believe", "expect", "will continue", "anticipate", "estimate",
"intend", "plan", "contemplate", "seek to", "future", "objective", "goal",
"project", "should", "will pursue" and similar expressions or variations of
such expressions may constitute "forward-looking statements". These
forward-looking statements involve a number of risks, uncertainties and other
factors that could cause actual results to differ materially from those
suggested by the forward-looking statements. These risks and uncertainties
include, but are not limited to our ability to successfully implement our
strategy, future levels of non-performing loans, our growth and expansion, the
adequacy of our allowance for credit losses, technological changes, investment
income, cash flow projections, our exposure to market risks as well as other
risks detailed in the reports filed by ICICI Limited with the Securities and
Exchange Commission of the United States. ICICI undertakes no obligation to
update forward-looking statements to reflect events or circumstances after the
date thereof.
For further investor queries:
Contact: A.P Singh at 91-22-653 6262 or email at singhap@icici.com
April 28, 2000
END