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TFCI Continues Healthy Growth Trajectory For H1FY22 Witnessing 10.3% YoY PAT

With the vaccination drives being rolled out on a large scale across the country and a return to normalcy, the tourism financing institution has demonstrated resilience in H1FY22, with AUM at Rs. 1,911 crores and while maintaining healthy asset quality, GNPL drops below 1%, Successfully raised fresh capital of Rs. 65.18 crores.

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TFCI (Tourism and Finance Corporation of India) on Friday reported a 10.26% YoY rise in half-yearly profits, registering another robust quarter, following its steady performance in Q1FY22. India’s premium tourism financing institution continues to successfully guide its clients along the path to recovery in the post-pandemic world.

With rapidly declining COVID-19 cases and a reduction in domestic travel restrictions, TFCI was able to sustain its momentum in H1FY22, with an AUM of Rs. 1,911 crores and NII at Rs. 63.96 crores for the half-year ended September 30, 2021.

The company has also achieved a major milestone by successfully raising Rs. 65.18 Crores by way of preferential allotment to promoter groups and marquee investor entities. These funds will be utilized to boost the company’s strong position in the lending ecosystem and to accelerate its strategic priorities. These investments reaffirm the faith of the market has in TFCI even in this challenging environment.

For the period under review, TFCI has been consistent in maintaining healthy profitability and improving the portfolio quality. What is notable here is the ability of TFCI to resolve its non-performing portfolio even during such times. On a Q-o-Q basis, its Gross and Net NPL fell substantially, from 4.37% and 3.45% respectively in Q1FY22 to 0.89% and 0.64% respectively in Q2FY22.

TFCI, given its immense experience in the sector is leading the way for the sector’s recovery and is well positioned to help the travel and hospitality sector bounce back, with the industry welcoming the post-pandemic bloom. TFCI has been instrumental in transforming the tourism landscape with its focussed approach into one of the biggest contributors to the economy, equipping clients financially for the future. It is handholding its customers by providing innovative solutions to help the sector step into a secure future. With healthy financials, and continued profitability, TFCI has not only created the right environment towards better tourism infrastructure, but also helping in creating a sustainable ecosystem. Further, TFCI was instrumental in extending facilities to its clients under the 'Atmanirbhar Bharat' Package, which was well acknowledged by the GoI (https://pib.gov.in/PressReleasePage.aspx?PRID=1741926)

The deep understanding of the sector, an eye for valuable assets, portfolio spread across the country and segments, etc. have also helped the company to steer in this new phase of growth for the segment. To increase the momentum amidst the steady comeback for the sector, the company has been continually growing its balance sheet size, by aggressively pursuing the emerging opportunities which would enable it to leverage its capital base (CAR of 44.38%, Q2FY22). The fresh equity raise coupled with low leverage in its balance sheet provides ample opportunities of growth. The momentum can be further fuelled by the ample liquidity profile of the company.

The experienced team led by Mr. Anirban Chakraborty at TFCI has also been spearheading novel initiatives post COVID-19, aimed at diversification in sectors like healthcare, education, etc. The specialized NBFC is looking beyond tourism financing to extend its facilities to all kinds of viable projects with an adequate security coverage. While it has been successful with the several opportunities presented in the MSME segment, the long-standing relationships based on mutual trust and respect, based on the valuable support given by TFCI have further strengthened the firm's financial performance.

Rapid reopening of businesses and huge pent-up demand of leisure travel, destination weddings and holiday season travel is being witnessed across the country. With low rates of COVID-19 infections and tourism hotspots becoming wide open once again throughout the nation, TFCI’s steady performance is symbolic of bright times ahead for the industry and travellers alike. This is undoubtedly a very positive indicator of the future for not just the tourism & hospitality industry, but also the nation’s economy on a whole. TFCI continues to remain a supportive partner for many players within the domain, as they transition towards a successful period for their business, with the return to normalcy just round the corner.