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Indiabulls Housing Finance has recorded 32% decline in the net profit to Rs 709.52 crore for the quarter ended September 2019 (Q2FY2020). The net interest income of the company dipped 26%, while net provisions jumped nearly six times causing decline in the net profit of the company in Q2FY2020. The company has witnessed decline in the margins, while asset quality has been maintained.
The net interest income of the company declined 12% to Rs 1251.47 crore in the quarter ended September 2019. The company has witnessed decline in spreads to 3.08% in Q2FY2020 from 3.14% in Q2FY2020, as yield on loans declined to 11.93% in Q2FY2020 from 12.05% in Q1FY2020. However, the cost of funds declined to 8.85% in Q2FY2020 from 8.91% in Q1FY2020.
Total income declined 20% to Rs 3419.54 crore in the quarter ended September 2019. Interest expense dipped 15% to Rs 2168.07 crore, while other expenses (including staff cost, provisions and other expenses) fell 9% to Rs 237.87 crore. Ensuing Gross Profit declined 29% to Rs 1014.51 crore in Q2FY2020.
Depreciation increased 178% to Rs 30.40 crore, while provisions galloped 485% to Rs 236.73 crore, causing 46% dip in the PBT to Rs 747.38 crore.
Effective tax rate dipped to 6.05% in Q2FY2020 from 25.4% in Q2FY2019. The final bottomline of the company dipped 32% to Rs 709.52 crore in the quarter ended September 2019.
The balance sheet size of the company dipped to Rs 111618 crore end September 2019, while the on balance sheet loan book fell to Rs 82135 crore end September 2019.
The capital adequacy ratio of the company is strong at 28.93% end September 2019.
The liquidity coverage ratio is at 783%, which is 16 times of what RBI has stipulated for NBFCs from December 2020 onwards.
Gross NPA declined to Rs 1611 crore end of Q2FY20 from Rs 1662 Cr at the end of Q1FY20. Net NPA at Rs 1139 crore, which is 1.07%, is down from Rs 1246 crore (1.10%) end of Q1FY20. Total provisions of Rs 1494 crore covers Gross NPAs of Rs 1611 crore by 92.8%.
Book value of the company stood at Rs 397.0 per share at end September 2019. Adjusted book value (net of net NPAs) was at Rs 370.3 per share at end September 2019.
Financial Performance H1FY2020
For the half year ended September 2019 (H1FY2020), the company has reported 12% decline in total income at Rs 7304.53 crore. Interest expense fell 7% to Rs 4530.75 crore, while other expenses also eased 8% to Rs 478.69 crore. Ensuing Gross profit dipped 21% to Rs 2297.13 crore. Depreciation increased 207% to Rs 59.44 crore and provision surged 265% to Rs 384.32 crore. PBT declined 34% to Rs 1853.37 crore. Effective tax rate stood at 19.5% compared to 25.3%. The final bottomline of the company dipped 28% to Rs 1511.05 crore in H1FY2020.
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