Thursday 24 October 2013

Indiabulls Housing Q2 PAT up 22%

Consolidated Total Revenue in Q2 FY14 stood at Rs. 1,474.2 crore

The Board of Directors of Indiabulls Housing Finance Ltd (IBHFL), India’s third largest housing finance company, announced its unaudited results for the quarter ended September 30, 2013, following its meeting on Wednesday, October 23.
Consolidated Total Revenue in Q2 FY14 stood at Rs. 1,474.2 crore, up 25.09 % from Rs. 1,178.5 crore in the quarter ended September 30, 2012, while Net Profit increased 22 % to Rs. 370.4 crore from Rs. 303.6 crore in the same period last year, aided by strong demand for retail home loans in Tier I, Tier II and Tier III cities. Net Interest Income grew 28.47 % to Rs. 644.9 crore from Rs. 502 crore a year ago. The board recommended an interim dividend of 350 % at Rs. 7 per share of face value of Rs. 2.
Despite the tough economic conditions, IBHFL has grown its loan assets by an average of Rs. 1,700 Crore – Rs. 2,000 Crore per quarter for the last 16 quarters. IBHFL’s loan assets have grown over the last 5 years at a CAGR of 26%.

FINANCIAL HIGHLIGHTS FOR H1 & Q2 FY14
Spreads for Q2 FY14 were stable at 350 bps on book basis and 320 bps on incremental basis.
Balance Sheet size at Rs. 42,975 crore as of September 30, up 21.6 % from Rs. 35,353 crore a year ago
H1 FY14 PAT at Rs. 721.9 crore, up 26.38 % from Rs. 571.2 crore a year ago
H1 FY14 NII at Rs. 1,243.6 crore, up 29.31 % from Rs. 961.7 crore a year ago
Q2 FY14 NII at Rs. 644.9 crore, up 28.47 % from 502 crore a year ago
Q2 FY14 PAT at Rs. 370.4 crore, up 22 % from 303.6 crore a year ago
Gross NPA in Q2 FY14 at 0.85 % of total advances vs 0.76 % a year-ago.
 Net NPA in Q2 FY14 at 0.44 %, vs 0.31 % a year-ago.
Total provision pool is Rs 462.1 crore against gross NPAs of Rs. 324.6 crore, which is a provision cover of 142 %.
Borrowing costs for IBHFL has remained relatively stable during the quarter despite the spike in short-term borrowing costs and liquidity tightness in the banking system in August. The MSF rate cut by the Reserve Bank of India in September helped to ease cost of funds. The company has recently received approval from the Reserve Bank of India to raise $200 million via external commercial borrowings, opening up a new source of raising funds.

Despite slower economic growth, IBHFL continues to see strong demand from retail housing loans in Tier I and Tier II and Tier III cities, which contributed to the strong business traction seen in this quarter. The company has 205 branches across India as of September 30, 147 of which are in Tier II and Tier III cities, further reinforcing IBHFL’s presence in semi-urban locations. IBHFL continues to focus on home loans of less than Rs. 25 lakhs, which is the largest business segment for the company. IBHFL is also offering a festive home loan scheme of 10.25% till November 30.

Commenting on the results and financial performance, Mr. Gagan Banga, MD & CEO, Indiabulls Housing Finance Ltd said, “The current macro-economic environment is challenging but we have seen strong demand for housing loans in Tier I and Tier II and Tier III cities, which has contributed to our robust performance. We expect the momentum in individual home loans to strengthen in the second half of the fiscal year.”
IBHFL’s capital adequacy ratio stood at 20.32 % of the risk weighted assets as of September 30, as against the minimum requirement of 12 %. Tier 1 capital was 15.98 % against a minimum requirement of 6 %.
Gross non-performing asset in the quarter ending September was at 0.85 % of total advances, compared with 0.76 % in the corresponding quarter last year. Net non-performing assets stood at 0.44 %, compared with 0.31 % in the year-ago period. Total provision pool is Rs. 462.1 crore against gross NPAs of Rs. 324.6 crore, which is a provision cover of 142%.

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