ABOUT IKF FINANCE LIMITED UNLISTED SHARES
IKF FINANCE LIMITED(‘the Company’ or ‘the Holding Company’)was registered as a non-deposit accepting Non-Banking Financial Company (‘NBFC-ND’) with the Reserve Bank of India (‘RBI’) and classified as a Non-Banking Financial Company- Asset Finance Company (‘NBFC-AFC’)with effect from May 2014. The company is one of the most prominent asset financing companies in South India. IKF Finance Limited provides finance for commercial vehicles, construction equipment, and other loans. The company’s primary focus is on financing the purchase of commercial vehicles, three-wheelers, cars & tractors. IKF Finance is also involved in asset management, for that purpose it has partnered with various banks and financial institutions. The company has launched Working Capital Loans to fulfill the emergency and daily needs of small road transport operators. There is very less competition in this particular area. This enables their customers to meet expenses arising out of unforeseen situations such as accidents, tax payments, overhauling of vehicles, etc.
INCORPORATION DETAILS
|
CIN |
U65992AP1991PLC012736 |
|
Registration Date |
30 May 1991 |
|
Address of the Registered office and contact details |
40-1-144,3rd FLOOR, Corporate Centre, M.G.Road, Vijayawada, Andhra Pradesh-520010 |
|
Name, Address and Contact Details of Registrar and Transfer Agent, if any |
M/s. Bigshare Services Private Limited 306, 3rd Floor, Right Wing, Amrutha Ville Opp. Yashoda Hospital, Rajbhavan Road Somajiguda, Hyderabad- 500 082 |
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
|
Name and Description of main products/services |
NIC Code of the product/service |
% to the total turnover of the Company |
|
Non-Banking Financial Activity |
99711 |
100.00% |
BOARD OF DIRECTORS
Mr.V.G.K.Prasad (Managing Director)
Mrs.V.Indira Devi (Whole Time Director)
Mrs. K Vasumathi Devi (Executive Director)
Dr. Sinha S Chunduri (Director)
Mr .S Veerabhadra Rao (Independent Director)
Mr. K Satyanarayana Prasad (Independent Director)
Mr.Vinit Mukesh Mehta (Nominee Director)
PARTICULARS OF SUBSIDIARY COMPANIES
|
Name of the Company |
% of shares held |
|
IKF Home Finance Limited |
91.48% |
SHAREHOLDING PATTERN (As of 31-03-2020)
|
S. No. |
Shareholders’ Name |
Number of shares |
% of total Shares of the company |
|
1 |
Promoters Shareholding |
2,43.93,705 |
51.38% |
|
2 |
Public Shareholding |
2,30,85,674 |
48.62% |
|
|
Total |
4,74,79,379 |
100.00% |
Apart from this, Promoters of the company also hold 51,79,688 partly paid-up equity shares.
INDUSTRY OUTLOOK
FY 19-20 continued to be a difficult year for the automobile industry. The continuity of subdued economic activity resulted in lower sales of automobiles. The overall Commercial Vehicles segment registered a de-growth of 28.75% in FY 2020 as compared to the last year. Within the Commercial Vehicles, Medium& Heavy Commercial Vehicles (M&HCVs) and Light Commercial Vehicles declined by 42.47% and 20.06% respectively in FY 2020 over FY 2019.
The sale of Passenger Vehicles declined by 17.88% in FY 2020 over FY 2019. Within the Passenger Vehicles, the sales of Passenger Cars and Vans declined by 23.58% and 39.23% respectively while sales of utility vehicles marginally increased by 0.48% in FY 2020 over last year. The sale of Three Wheelers declined by 9.19% in FY 2020 over FY 2019. Within the Three Wheelers, Passenger Carriers and Goods Carrier declined by 8.28% and 13.27% respectively in FY 2020 over FY 2019. Two Wheelers sales registered a de-growth of 17.76% in FY 2020 over FY 2019. Within the Two Wheelers segment, Scooters, Motorcycles, and Mopeds declined by 16.94%, 17.53%, and 27.64% respectively in FY 2020 over FY 2019. The outlook for 2021 is still uncertain, with the COVID-19 situation evolving each day. Almost all the sectors, except agriculture and allied activities, of the economy, have been adversely impacted. In April-September 2020, automobile sales witnessed a sharp decline as passenger Vehicle sales were down by 34%, Commercial Vehicle sales were down by56.01%, Three-wheeler sales were down by 82.26%, and Twowheelersales down by38.28% compared to April-September 2019. However, September 2020 witnessed a sharp surge in domestic wholesales (sales by OEMs to Dealers), not only sequentially, but also on Year on Year basis in segments like tractors, passenger vehicles, and two-wheelers and the retail sales of passenger vehicles registered a growth of 26.45% and Two Wheelers registered a growth of 1.64% compared to September 2019. The retail sales of Commercial Vehicles and Three Wheelers continue to register de-growth but are expected to perform better in the second half of FY 2021.
KEY FINANCIALS OF IKF FINANCE LIMITED (In Rs. Lakhs)
|
Particulars |
2020 |
2019 |
2018 |
2017 |
|
Revenue from Operations |
22,996.02 |
15,778.78 |
13,569.69 |
12,583.42 |
|
EBITDA |
16,589.38 |
11,135.80 |
10,076.85 |
9,714.04 |
|
EBITDA margin |
72.14% |
70.57% |
74.26% |
77.20% |
|
Finance Cost |
12,534.48 |
8,551.40 |
7,078.48 |
7,062.37 |
|
Depreciation |
194.8 |
131.23 |
72.71 |
91.84 |
|
Other Income |
954.23 |
38.86 |
9.28 |
9.08 |
|
Profit Before Tax |
4,814.33 |
2,492.03 |
2,934.94 |
2,568.92 |
|
Total Tax |
1,230.08 |
618.51 |
1,019.44 |
882.81 |
|
Profit After Tax (PAT) |
3,584.25 |
1,873.52 |
1,915.50 |
1,686.11 |
|
EPS |
7.13 |
3.95 |
4.18 |
3.70 |
BALANCE SHEET OF IKF FINANCE LIMITED(In Rs. Lakhs)
|
Particulars |
2020 |
2019 |
|
ASSETS |
||
|
FINANCIAL ASSETS |
||
|
Cash and Cash Equivalents |
7,004.56 |
5,392.24 |
|
Trade Receivables |
23.96 |
135.42 |
|
Loans |
1,37,854.68 |
1,21,369.52 |
|
Other financial assets |
1,428.77 |
1,365.59 |
|
TOTAL FINANCIAL ASSETS |
1,46,311.97 |
1,28,262.77 |
|
NON FINANCIAL ASSETS |
||
|
Tax assets |
455.26 |
532.93 |
|
Tangible assets |
444.8 |
476.72 |
|
Intangible assets |
993.16 |
953.73 |
|
Other non-financial assets |
400.09 |
441.27 |
|
TOTAL CURRENT ASSETS |
2,293.31 |
2,404.65 |
|
TOTAL ASSETS |
1,48,605.28 |
1,30,667.42 |
|
EQUITY AND LIABILITIES |
||
|
EQUITY |
||
|
Equity Share capital |
5,027.64 |
5,027.64 |
|
Other Equity |
25,555.01 |
22,015.55 |
|
Non-Controlling Interest |
422.3 |
177.39 |
|
TOTAL EQUITY |
31,004.95 |
27,220.58 |
|
LIABILITIES |
||
|
FINANCIAL LIABILITIES |
||
|
Payables |
17.85 |
26.05 |
|
Debt securities |
6,109.76 |
12,609.31 |
|
Borrowings (Other than debt) |
1,00,797.04 |
81,240.00 |
|
Subordinated liabilities |
6,450.76 |
4,525.83 |
|
Other financial liabilities |
3,805.94 |
4,615.01 |
|
TOTAL FINANCIAL LIABILITIES |
1,17,181.35 |
1,03,016.20 |
|
NON FINANCIAL LIABILITIES |
||
|
Tax liabilities |
38.68 |
88.44 |
|
Provisions |
230.93 |
150.15 |
|
Other non-financial liabilities |
149.36 |
192.08 |
|
TOTAL NON-FINANCIAL LIABILITIES |
418.97 |
430.67 |
|
TOTAL LIABILITIES |
1,17,600.32 |
1,03,446.87 |
|
TOTAL EQUITY AND LIABILITIES |
1,48,605.27 |
1,30,667.45 |
DIVIDEND HISTORY
|
Particulars |
2020 |
2019 |
2018 |
|
Dividend (final + interim) (In Rs.) |
Nil |
Nil |
Nil |
|
Retained Earnings (Consolidated) (In Rs. Lakhs) |
11,845.59 |
9,132.53 |
8,181.49 |
PERFORMANCE OF THE COMPANY
The company has registered a growth of 45.74% in its revenue from Operations from Rs. 15,778.78 lakhs in FY 2019 to Rs. 22,996.02 lakhs in FY 2020.
EBITDA of the company has increased by 48.97% from Rs. 11,135.80 lakhs in FY 2019 to Rs. 16,589.38 lakhs in FY 2020.
The finance Cost of the company increased by 46.5% in FY 2020 and touched Rs. 12,534.48 lakhs from Rs. 8,551.40 lakhs in FY 2019.
Profit After Tax of the company increased by 91.3% to Rs. 3,584.25 lakhs in FY 2020 from Rs. 1,873.52 lakhs in FY 2019.
In FY 2020, Company mobilized Term Loan(s) of Rs.3,500lakhs from Woori Bank, Rs. 1,000lakhs from IndusIndBank, Rs. 1,500lakhs from AU Small Finance Bank, Rs. 7500lakhs from Union Bank of India, Rs. 3500 lakhs from HDFC Bank, Rs. 1500lakhs from Utkarsh Small Finance Bank, and Rs. 11,500lakhs from State Bank of India. The company has mobilized Rs.3,300lakhs from Unifi AIF by issuing Non-Convertible Debentures.
Total borrowings of the company reached Rs. 1,06,906.80 lakhs in FY 2020, up by 13.9% from Rs. 93,849.31 lakhs in FY 2019.
The Capital to Risk Assets Ratio of the company is 21.19%as of 31-03-2020, well above the minimum of 15%prescribed by the Reserve Bank of India.
IKF Finance Limited has not given any dividends in the past three years.
