The article has a positive tone to it – the author sounds optimistic that ICFL will be able to turn the corner. I have noted couple of points from the article below:
- To address liquidity issues on its liability side, ICFL raised an incremental funding of Rs1,850 crore from 1 April 2022 to 10 August 2022. Also, the company repaid debentures worth Rs700 crore which were due for repayment later in August 2022 (highlighting it’s comfortable liquidity position). Timely resolution of its liquidity issues will remain a key determinant.
- ICFL has recognized most of its asset quality stress upfront and, going forward, its bottom-line will be aided by provision write-backs for the coming few quarters. Management expects a trend of provision write-backs to continue which will aid its bottom-line, going forward.
I would encourage you to purchase the article and read for yourself (MoneyLife allows you to purchase a single article for like 100 bucks).
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