For the year under review, the consolidated net profit stood at of USD 12,668,725 as per the new standard as against to USD 9,475,886 for the year ended 31 March 2018 computed as per the old accounting standard IAS 39. Higher dividend income from IBL and interest on the Rights Issue proceeds kept in deposit with institutions pending deployment led to increase in the profit for the year.
The Company has sold 15 Mn shares in HLFL during the year. The gain on this sale as per the old accounting standard was USD 16,033,492 and this has been reduced to USD 3,601,951 under the new standard with the balance gain going directly into the reserves of the Company.
The total equity of the Company including reserves, however, stood at USD 2.652 Bn as on 31st March 2019 as against USD 2.650 Bn as on 31st March 2018. Since most of the investments are in Indian Rupees, the depreciation of the Rupee from 65.08 to 69.55 against US$ over the year is the reason for the stagnant position.
The Directors have declared a dividend of 6% for financial year 2018-19 to the shareholders.
The second tranche Rights Issue undertaken by the Company during the year has been oversubscribed as was the case in the first tranche in November 2016. The second tranche Rights Issues shares of USD 1 each were issued at a price of USD 35 including a premium of USD 34. The total amount raised through both the tranches is about USD 325 Mn. The Directors thank the shareholders for the subscription for the Rights Issue, the proceeds of which will be used for acquisition entities in the finance sector for making the Company a vibrant organization.
The book value of the share of the Company of USD 1 each is USD 73.78 as on 31st March 2019 as against USD 88.08 as of 31” March 2018. The fall in value was largely due to depreciation of Indian Rupee and conversion of treasury shares into equity on account of the Rights Issue. The reduction in the fair value of one of its unlisted investments and in the share price of IBL from Rs. 1,797 as on 31st March 2018 to Rs. 1,780 as on 31st March 2019 has also impacted the book value.
As at 31st March 2019, the Group’s investment in IBL, HLFL, IMCL and IndusInd Information & Technologies Ltd. (IITL) stood at USD 2.51 Bn against the cost of USD 387 Mn.