Indiabulls Housing Finance Q1 net rises 25% to Rs 788 cr

Total revenue up 24.2% to Rs 3,225 cr; disbursals rise 29% to Rs 6,799 cr

Indiabulls Housing Finance Ltd (IBHL), India’s second largest housing finance company, has posted 25 per cent increase in its net profit at Rs 788.2 crore for the quarter ended June 2017 compared to Rs 630.1 crore reported in the same quarter last year. 

Total revenue of the company was up 24.2 per cent to Rs 3,225 crore for the April–June quarter of FY18 as against Rs 2,597.5 crore for the corresponding quarter the previous year. Total disbursal for the quarter stood at Rs 6,798.6 crore, up 29 per cent from a year ago.

Margins on both, the stock of loans and incremental disbursals have expanded, driven by increasing funding efficiencies from an Icra rating upgrade to AAA.

Both gross and net-non performing assets (NPAs) have declined significantly to 0.80 per cent and 0.31 per cent, respectively, for the first quarter of FY18 from 0.84 per cent and 0.36 per cent in June 2016.

“Our margins on both, the stock of loans as well as on incremental loans are at the higher end of the guided range where I expect them to remain. Margins have expanded due to funding efficiencies from the upgrade in our long-term credit rating to the highest AAA rating by rating agency Icra. We now enjoy the highest long-term AAA rating from three rating agencies. We are confident of sustaining loan amount growth at over 30 per cent, propelled by growth in home loan disburalsfor mid-income housing,” said Gagan Banga, Vice Chairman and Managing Director, IBHFL.

Meanwhile, cost-to-income for Q1FY18 was down by 40 bps to 12.9 per cent compared with a decline of 100 bps for the whole of FY17. Decline in cost-to-income has accelerated due to increasing share of disbursals from online eHome loans and technology-enabled, cost-effective expansion into tier-II and tier III towns and smart cities.