Tourism Finance Corp jumps 4% as firm to consider issuance on NCDs

NEW DELHI: Shares of Tourism Finance Corporation of India gained as much as 4 per cent in early trade Wednesday as the company said it will consider the issuance of non-convertible debentures to be issued on a private placement basis on November 22.

The scrip rose to a high of Rs 69.15 as against the previous close of Rs 66.75 on the BSE.

In the July-September quarter, Tourism Finance Corporation had posted a 1.32 per cent on-year decline in net profit to Rs 21.65 crore versus Rs 21.94 crore a year ago. The tourism company’s sales had shown a decline of 5.53 per cent to Rs 61.20 crore in the previous quarter.

While net profit declined on a yearly basis in Q2, the company managed to post healthy assets under management when viewed from a half-yearly basis, with AUM coming in at Rs 1,911 crores and Net Interest Income at Rs 63.96 crores in the April-September period.

This was primarily on account of a decline in COVID-19 cases and an easing of travel restrictions.

The picture on asset quality also improved on a sequential basis, with the company reporting a gross non-performing asset ratio of 0.89 per cent in the July-September quarter as against 4.37 per cent a quarter ago. The net non-performing asset ratio declined to 0.64 per cent in Q2 as against 3.45 per cent in the preceding quarter.