Indiabulls Housing Finance has maintained healthy growth momentum reporting 44% increase in the net profit to Rs 551.70 crore for the quarter ended December 2019. The net interest income of the company has dipped 51% to Rs 987 crore, driven by 18% decline in the total loan assets. The company has witnessed deterioration in asset quality and decline in margins.

The net interest income of the company plunged 51% to Rs 987 crore in the quarter ended December 2019. The company has exhibited decline in spreads to 2.96% in Q3FY2020 from 3.46% in Q3FY2019, as cost of funds rose to 8.85% in Q3FY2020 from 8.56% in Q3FY2019 and yield on loans declined to 11.81% in Q3FY2020 from 12.02% in Q3FY2019.

Total income dipped 25% to Rs 3369.16 crore in the quarter ended December 2019. Interest expense fell 16% to Rs 2055.39 crore, while other expenses (including staff cost, provisions and other expenses) moved up 66% to Rs 537.98 crore. Ensuing Gross Profit slipped 55% to Rs 776.39 crore in Q3FY2020.

Depreciation increased 80% to Rs 20.47 crore, while provisions fell 54% to Rs 142.77 crore. PBT declined 56% to Rs 613.15 crore.

Effective tax rate was lower at 10.8% in Q3FY2020 from 29.9% in Q3FY2019. The final bottomline of the company fell 44% to Rs 551.70 crore in the quarter ended December 2019.

The loan portfolio of the company dipped 18% to Rs 78253 crore at end December 2019 over December 2018. The sold down portfolio stood at Rs 24082 crore at end December 2019, showing a decline of 4% over December 2018.

The borrowings of the company declined 26% to Rs 80007 crore end December 2019.

Gross NPA ratio increased to 1.94% at end December 2019 from 0.79% at end December 2018. Meanwhile, Net NPA ratio also moved up to 1.39% at end December 2019.

Book value of the company stood at Rs 412.8 per share at end December 2019. Adjusted book value (net of net NPAs) was at Rs 379.5 per share at end December 2019.

Financial Performance 9MFY2020

For the nine months ended December 2019 (9MFY2020), the company has reported 19% decline in total income at Rs 10390.18 crore. Interest expense dipped 19% to Rs 10392.81 crore, while other expenses also fell 14% to Rs 726.67 crore. Ensuing Gross profit declined 33% to Rs 3073.51 crore. Depreciation surged 160% to Rs 79.91 crore and provision moved up 28% to Rs 527.09 crore. PBT slipped 41% to Rs 2466.51 crore. Effective tax rate stood at 17% in compared to 27%. The final bottomline of the company declined 33% to Rs 2062.74 crore in 9MFY2020.