Fairfax India Holdings Corporation: Third Quarter Financial Results
November 02 2023 - 5:08PM
Fairfax India Holdings Corporation (TSX: FIH.U) announces net
earnings of $133.0 million in the third quarter of 2023 ($0.93 net
earnings per diluted share), compared to net earnings of $112.6
million in the third quarter of 2022 ($0.79 net earnings per
diluted share).
Highlights for the third quarter of 2023
included the following:
- Net change in unrealized gains on investments of $177.5
million, principally from increases in the fair values of the
company's listed investments in IIFL Finance ($89.0 million), CSB
Bank ($53.7 million), IIFL Securities ($26.2 million) and 5paisa
($6.5 million), and private company investments in Seven Islands
($29.2 million) and NSE ($6.1 million), partially offset by a
decrease in the fair value of the company's investment in the
private company Sanmar ($34.9 million).
- The company continued to buy back shares under its normal
course issuer bid and during the first nine months of 2023
purchased for cancellation 2,609,481 subordinate voting shares at a
net cost of $33.9 million ($12.98 per subordinate voting
share).
- The company recorded a performance fee of $20.5 million for the
third quarter of 2023 and at September 30, 2023 had accrued $82.6
million to the benefit of Fairfax Financial Holdings. The
performance fee, if any, will be determined on December 31, 2023 at
the end of the three year measurement period.
- At September 30, 2023 common shareholders' equity was $2,833.4
million, or book value per share of $20.89, compared to $2,642.0
million, or book value per share of $19.11, at December 31, 2022,
an increase of 9.3%, primarily attributable to net earnings and the
positive impact of share purchases for cancellation, partially
offset by unrealized foreign currency translation losses during the
first nine months of 2023.
- On October 3, 2023 the company amended its $175 million
unsecured revolving credit facility to extend the maturity date
from December 17, 2024 to October 2, 2026, with an option to extend
for an additional year.
Fairfax India is in strong financial health,
with cash and marketable securities of approximately $261
million.
There were 136.5 million and 138.8 million
weighted average common shares outstanding during the third
quarters of 2023 and 2022 respectively. At September 30, 2023 there
were 105,661,419 subordinate voting shares and 30,000,000 multiple
voting shares outstanding.
Fairfax India's detailed third quarter report
can be accessed at its website www.fairfaxindia.ca.
Fairfax India Holdings Corporation is an
investment holding company whose objective is to achieve long term
capital appreciation, while preserving capital, by investing in
public and private equity securities and debt instruments in India
and Indian businesses or other businesses with customers, suppliers
or business primarily conducted in, or dependent on, India.
For further information,
contact: John
Varnell, Vice President, Corporate Affairs (416) 367-4755
FAIRFAX INDIA HOLDINGS
CORPORATION 95 Wellington Street West, Suite 800,
Toronto, Ontario, M5J 2N7 Telephone: 416-367-4755
This press release may contain forward-looking
statements within the meaning of applicable securities legislation.
Forward-looking statements may relate to the company's or an Indian
Investment's future outlook and anticipated events or results and
may include statements regarding the financial position, business
strategy, growth strategy, budgets, operations, financial results,
taxes, dividends, plans and objectives of the company.
Particularly, statements regarding future results, performance,
achievements, prospects or opportunities of the company, an Indian
Investment, or the Indian market are forward-looking statements. In
some cases, forward-looking statements can be identified by the use
of forward-looking terminology such as “plans”, “expects” or “does
not expect”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or “does not anticipate” or
“believes”, or variations of such words and phrases or state that
certain actions, events or results “may”, “could”, “would”,
“might”, “will” or “will be taken”, “occur” or “be achieved”.
Forward-looking statements are based on our
opinions and estimates as of the date of this press release, and
they are subject to known and unknown risks, uncertainties,
assumptions and other factors that may cause the actual results,
level of activity, performance or achievements to be materially
different from those expressed or implied by such forward-looking
statements, including but not limited to the following factors:
COVID-19 pandemic; the conflicts in Ukraine and Israel, and the
development of other geopolitical events and economic disruptions
worldwide; oil price risk; geographic concentration of investments;
foreign currency fluctuation; volatility of the Indian securities
markets; investments may be made in foreign private businesses
where information is unreliable or unavailable; valuation
methodologies involve subjective judgments; financial market
fluctuations; pace of completing investments; minority investments;
reliance on key personnel and risks associated with the Investment
Advisory Agreement; lawsuits; use of leverage; significant
ownership by Fairfax may adversely affect the market price of the
subordinate voting shares; weather risk; taxation risks; emerging
markets; MLI; economic risk; and trading price of subordinate
voting shares relative to book value per share risk. Additional
risks and uncertainties are described in the company's annual
information form dated March 10, 2023 which is available on SEDAR
at www.sedar.com and on the company's website at
www.fairfaxindia.ca. These factors and assumptions are not intended
to represent a complete list of the factors and assumptions that
could affect the company. These factors and assumptions, however,
should be considered carefully.
Although the company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. The company does not
undertake to update any forward-looking statements contained
herein, except as required by applicable securities laws.
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