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Indiabulls Housing Finance’s (IBH) net profit fell by 32 per cent to ₹709.5 crore in the second quarter of the fiscal. Its consolidated profit for the July to September 2018 quarter was ₹1,044.15 crore. Its total revenue also declined by 19.6 per cent to ₹3,419.54 crore in the quarter ended September 30, 2019, against ₹4,254.30 crore in the same period a year ago.
Net interest income
Similarly, its net interest income also fell by 17.8 per cent to ₹1,252 crore in the second quarter of the fiscal from ₹1,523 crore a year ago. The company has taken benefit of the lower corporate tax rate and recognised provisions for income tax and re-measured its direct tax assets and liabilities.
Its gross non-performing assets stood at 1.51 per cent, or ₹1,611 crore, at the end of the second quarter, from ₹1,662 crore at the end of the first quarter this fiscal. Net NPA was at ₹1,139 crore, which is 1.07 per cent, against ₹1,246 crore, or 1.10 per cent, as on June 30, 2019.
Indiabulls Housing Finance is the second-largest housing finance company in the country. Balance sheet size at the end of the second quarter was ₹1,11,618 crore, and the on balance sheet loan book stands at ₹82,135 crore.
Its capital adequacy ratio was 28.93 per cent and liquidity coverage ratio is at 783 per cent. Despite the continued challenges in the NBFC and housing finance sector, IBH, in a statement, stressed that it is on a strong footing and that it will focus on retail loans.
“At a minimum we are now looking at disbursing ₹30,000 crore of retail home loans and LAP over the next 12 months. The business is otherwise on an extremely strong footing,” said Gagan Banga, Vice-Chairman and MD, IBH.
“We are one of the least levered in the NBFC and HFC sector, with a net leverage of only 3.6 times,” the company said in a statement. It also underlined that its cash and liquid investments comfortably cover the next 12 months of debt repayments of ₹20,151 crore.
Interim dividend
IBH has reduced commercial paper borrowing to ₹500 crore, which now constitutes to only 0.4 per cent of its funding. An interim dividend of ₹7 per share of face value ₹2, amounting to 350 per cent, was also declared in the board meeting held on Wednesday.
It also approved the issuance of secured and or unsecured redeemable non-convertible debentures of up to ₹10,000 crore, and NCDs along with warrants through QIP of up to ₹100 crore, subject to applicable approvals.
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