Indiabulls Fin Services net dips 83% at Rs 99 cr

Indiabulls Financial Services net profit dropped 82.69 per cent on account of losses incurred in its subsidiaries.

The company reported net profit of Rs 99.45 crore for the financial year 2008-09. Indiabulls had net profit of Rs 574.39 crore in the financial year 2007-08.

“During the quarter (January-March), the subsidiaries have incurred a loss of Rs 227.53 crore,” the company said in a statement to Bombay Stock Exchange.

Revenues (income from operations) for the previous financial year saw a growth of 42.91 per cent. Indiabulls reported Rs 1,584.52 crore revenues in the financial year 2009 (FY09).

On standalone basis, net profit saw a decline of 50.21 per cent to Rs 190.17 crore. In financial year 2008 (FY08), the revenues were Rs 381.97 crore.

The standalone revenues increased by 46.65 per cent to Rs 1,409.57 crore.

Following the results, the company has declared a dividend of Rs 2 each share.

Indiabulls, which is in the process of setting up a commodity exchange (International Multi Commodity Exchange Limited), said that it will go live in the near future. The company is awaiting recognition from Forward Markets Commission. The company also said that technology exchange network and infrastructure is at an advanced stage of completion and membership campaign is underway.

"The regulatory approvals for commencing operations of Indiabulls Life Insurance and India bulls Asset management are under process," said the company.

In its guidance for FY 2010, the company said that the factors that negatively impacted its result in FY 2009 have started to move in a favourable direction and will significantly increase its net interest margins and profits in FY 2010.

It has said that net asset portfolio is expected to from more than 30 per cent in the current financial year. This will be backed by its disbursal target of over Rs 6,000 crore.

"For FY 2009-10, the company expects to generate consolidated profits in the range of Rs 430-500 crore," it said.

"The competitive forced in lending business have become more favourable as some non-banking finance companies have shut down their consumer finance business and others are severely capital constrained," Indiabulls said.

The key segment for the company will be loans against commercial vehicles, new home loans, loans against property and SME financing.