Tourism Finance Corporation of India Limited — Important, 28-01-2025: Financial Result Updates

**Consolidated Financial Results for Tourism Finance Corporation of India Ltd.**

Revenue for the quarter ended December 31, 2024, stands at ₹6,414.05 crore, reflecting a slight decrease compared to ₹6,735.84 crore in the same quarter last year, translating to a decline of approximately 4.8%. The primary factors impacting revenue include heightened competition and market adjustments affecting interest income and fee-based income streams.

Net profit after tax for the quarter is ₹2,263.15 crore, a decrease from ₹2,758.72 crore year-over-year, representing a drop of around 18%. The Earnings Per Share (EPS) for the quarter is ₹2.44, down from ₹3.05. The reduction in profitability can be attributed to a higher finance cost of ₹2,611.27 crore, coupled with increased provisions for bad debts amounting to ₹400 crore in response to foreseen credit risks.

Operational costs witnessed an increase of 5.5% year-over-year, driven by rising employee benefits expenses and other operating costs. This reflects the company's ongoing investment in human resources and operational efficiency programs.

From a balance sheet perspective, total debt to total assets is at 44.72%, indicating a moderate leverage level, while the total equity is supported by consistent earnings contributes positively to credit metrics.

Strategically, TFCI appears to be focused on enhancing its market presence while managing risk through thorough provisions for expected credit losses. The entry into retail lending signals a potential growth area, but the impact is yet to be significant.

Looking ahead, the overall sentiment suggests positioning for cautious investment. Considering the current performance metrics and future growth strategies, a prudent stance would be to hold onto positions in anticipation of potential recovery in revenue and profit margins as market conditions improve.