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AAVAS Financiers gains after Q3 PAT rises 26% YoY

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Capital Market
Last Updated : Jan 21 2021 | 2:16 PM IST

AAVAS Financiers rose 1.25% to Rs 1950 after the company's consolidated net profit rose 25.8% to Rs 85.46 crore on a 29.5% increase in total income to Rs 310.07 crore in Q3 FY21 over Q3 FY20.

Profit before tax in Q3 December 2020 stood at Rs 110.29 crore, up by 37.1% from Rs 80.43 crore in Q3 December 2019. Current tax expense increased by 47.8% year-on-year (YoY) to Rs 21.21 crore.

Impairment charge in financial instruments surged to Rs 16.16 crore in the third quarter from Rs 1.34 crore in the same period last year.

The company said that the COV1D-19 pandemic had led to a significant volatility in global and Indian financial markets and a significant decrease in global & local economic activities, which may persist.

Based on the information available till date, the company has used the principles of prudence to provide for the impact of pandemic on the financial statements specifically while assessing the expected credit loss on financial assets.

This has resulted in an additional provision of Rs 4.28 crore against financial assets during the quarter, taking the overall additional provision of Rs 19.02 crore as of 31 December 2020.

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AAVAS Financiers is a retail, affordable housing finance company, primarily serving low- and middle-income self-employed customers in semi-urban and rural areas in the country.

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First Published: Jan 21 2021 | 1:43 PM IST

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