Fullerton India eyes threefold growth in assets

Company firms up a 5-year business plan; at present AUMs are Rs 6,245 cr, up from Rs 4,823 cr in March 2013

After consolidating its operations, Fullerton India Credit Limited, a finance company owned by Temasek Holdings, is expecting over a threefold growth to Rs 20,000 crore in assets under management (AUMs) by March 2019.

Shantanu Mitra, chief executive and managing director, said the company had firmed up a five-year business plan this financial year. At present, the company has AUMs of Rs 6,245 crore, up from Rs 4,823 crore in March 2013.

Revenues from the business grew by 17 per cent to Rs 1,388 crore in 2013-14 from Rs 1,185 crore in 2012-13.

The unlisted finance company posted a 24 per cent growth in its net profit at Rs 188 crore in 2013-14, against Rs 152 crore in 2012-13. However, it did not declare dividend.

The company is retaining profits for funding business growth, Mitra said.

The company is well capitalised, with a capital adequacy ratio of 22.45 per cent at end-March. Temasek had infused Rs 150 crore in 2012-13. Fullerton is not looking at a fresh capital injection in the medium term, Mitra added.

While the company has been reporting profit for four years, it has been bringing down unabsorbed losses.

Now, these are Rs 590 crore. It had a loss of Rs 717.09 crore in 2009-10.

The portfolio quality remains healthy with its gross non-performing assets (NPAs) to gross advances ratio at 1.72 per cent against 2.11 per cent last year. The net NPA was at 1.3 per cent against 1.8 per cent last year with an NPA coverage ratio of 73 per cent.