Tourism Finance Corporation of India Limited — Results, 09-05-2025: Integrated Filing- Financial

Tourism Finance Corporation of India Ltd. has announced a board meeting on May 9, 2025, to consider the financial results for the quarter and half-year.

1) Revenue Performance: For the year ended March 31, 2025, total income rose 7.5% YoY to Rs. 260.06 Cr, mainly driven by interest income of Rs. 206.87 Cr and growth in fee, commission income, and fair value gains.

2) Profitability and EPS: Net profit increased 14% to Rs. 103.81 Cr with EPS at Rs. 11.21, up from Rs. 10.08. Margins expanded to 41.3% from 37.7%, supported by higher operational income and controlled provisions despite elevated finance costs.

3) Operational Costs: Expenses ticked up slightly to Rs. 127.04 Cr due to higher employee costs and finance charges, partially offset by improved provisioning and lower depreciation, indicating efficient asset use.

4) Key Metrics: Gross NPA inched up to 3.22%, while net NPA remained steady at 1.61%. The provision coverage ratio improved to 50%, and Capital Adequacy Ratio strengthened significantly to 69.7%, bolstering financial stability.

5) Balance Sheet / Cash Flow Health: The loan book grew to Rs. 1655.87 Cr. Investments were trimmed, reflecting portfolio shifts. Borrowings reduced, improving the debt-to-equity ratio to 0.72 from 0.91. Cash reserves rose sharply to Rs. 140.67 Cr, enhancing liquidity. The company raised Rs. 22.3 Cr through preferential equity.

6) Management Outlook: Prudent risk management is evident with enhanced credit loss provisions amid economic uncertainty. A Rs. 3 per share dividend has been proposed. Plans to raise up to Rs. 1000 Cr via debt instruments are approved for growth capital.

Final takeaway: TFCI exhibits healthy, steady growth with improved profitability and stronger risk buffers. Retail investors may find it an appealing NBFC play in tourism financing, balancing cautious risk management with growth potential.