IDLC Finance has reported a lower profit in the first quarter of this year compared to the corresponding period of last year due to the low performance of its subsidiaries.
However, on a solo basis, its net profit increased by 6 percent between January and March.
During the three-month period, the consolidated net profit of IDLC was Tk29.26 crore, which was Tk51.53 crore in the previous year. In that perspective, net income of the company has dropped by 43.22 percent.
In the first quarter of 2020, the company's consolidated earnings per share were Tk0.78, while its consolidated net asset value (NAV) per share was Tk37.95.
IDLC incurred investment income loss of Tk16.73 crore during the first quarter, but in the corresponding period last year, the number was Tk7.04 crore.
Besides, commission, exchange and brokerage income of IDLC decreased by 24 percent from the previous period. The consolidated net operating cash flow per share dropped by 76.36 percent.
Arif Khan, managing Director of IDLC Finance, told The Business Standard, "The incomes of subsidiaries have fallen compared to the last year due to a downtrend in the stock market. Besides, performance in the share business is not always the same."
He added that despite many risks in the financial institutions' sector, earnings from IDLC's main business has been continuously increasing.
"IDLC has profited the most in this sector, compared to other companies. The company is doing fine in terms of return on assets, return on equity and non-performing loans than any other firms in the sector.
Regarding the Covid-19 crisis, he said, that IDLC, alongside banks, will disburse funds for the government announced stimulus packages.
Last year, the company's net profit was Tk169.99 crore and the earnings per share were Tk4.51.
IDLC has recommended a 35 percent cash dividend this year.
Sponsors and directors of IDLC Finance jointly own 56.66 percent of its shares, institutional investors own 20.57 percent, foreign investors own 12.18 percent, and general investors own 10.59 percent of the shares.
The last trading price of each share of the company at the Dhaka Stock Exchange was Tk41.90. IDLC Finance listed on the Dhaka Stock Exchange in 1992.