Indiabulls Finance Q2 consolidated net up marginally to Rs 289.4 cr

Impairments on financial instruments double YoY; income from operations almost flat at Rs 2,229.7 cr

Indiabulls Housing Finance Ltd posted a marginally higher net profit of Rs 289.4 crore in the second quarter ended September 2022 (Q2FY23) from Rs 286.3 crore in the same quarter of FY22. Sequentially, the consolidated net profit rose slightly from Rs 286.64 crore in the first quarter ended June 2022 (Q1FY23).

The consolidated income from operations was almost flat at Rs 2,229.7 crore in Q2FY23 from Rs 2,232.7 crore a year ago. Sequentially, it rose from Rs 2,075 crore in Q1FY23, according to a company filing with BSE.

The Indiabulls Housing Finance stock closed 2.36 per cent up at 134.6 per share on BSE.

The firm's finance costs dipped to Rs 1,410.1 crore from Rs 1,570.5 crore a year ago and Rs 1,495.2 crore in the quarter ended June 2022.

However, the impairment on financial instruments more than doubled to Rs 226 crore in Q2FY23 from Rs 104.53 crore in Q2FY22. Sequentially they grew almost four fold from Rs 55.78 crore in Q1FY23.

The company's balance sheet size declined to Rs 75,812 crore in September 2022 from Rs 86,432 crore a year ago. Sequentially, it expanded from Rs 75,794 crore in June 2022. The mortgage lender said its balance sheet and assets under management have stabilised. The base has been formed for 10 per cent YoY growth in loans in the current financial year (FY23).

Gross non-performing assets (GNPA) rose to 2.94 per cent from 2.69 per cent a year ago. Sequentially, they moderated from 2.96 per cent in June 2022. Net NPA rose to 1.7 per cent from 1.53 per cent and declined from 1.71 per cent in June 2022. 

The company's capital adequacy ratio improved to 34 per cent at end of September 2022 from 31.2 per cent a year ago. Sequentially, it was flat at 34 per cent at the end of June 2022.