IndoStar Capital Finance Q3 net profit jumps multi-fold to Rs 24 cr

IndoStar Capital Finance on Thursday reported a multi-fold jump in net profit at Rs 24 crore for the quarter ended December 2020.

Its net profit stood at Rs 0.2 crore in the same period a year ago.

The company's net revenues from operations, however, fell 16 per cent to Rs 157 crore as against Rs 186 crore in Q3 FY20, IndoStar said in a release.

The retail focussed non-banking financial company said its assets under management (AUM) was flat at Rs 8,865 crore on account of gradual reduction in corporate lending book.

The company said its retail disbursement has reached pre-COVID levels.

"With the moratorium behind us, the company, with signs of an imminent economic recovery, has restarted it disbursements and quickly reached it pre-Covid disbursement levels in January 2021. Retail disbursements more than doubled from Rs 204 crore in Q2FY21 to Rs 477 crore in Q3FY21," it said.

The company's Executive Vice-Chairman and CEO R Sridhar said the announcement of a voluntary scrappage policy will completely revitalize the commercial vehicles sector and is a game changer.

"We have charted a distinct trajectory of expanding our portfolio in the second-hand commercial vehicles, SME and affordable housing segments," he said.

Stock of the comany closed 2.34 per cent higher at Rs 360.80 apiece on BSE.