Saturday, March 01, 2025 | 01:00 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

IndoStar Capital Finance reports 36% decline in Q2 net profit at Rs 32 cr

IndoStar Capital Finance on Thursday reported a 36 per cent decline in net profit at Rs 32 crore for the quarter ended September.

cash, currency, notes, funds, investment, shares, growth, profit, loss, tax, money, income, earnings

Press Trust of India New Delhi

IndoStar Capital Finance on Thursday reported a 36 per cent decline in net profit at Rs 32 crore for the quarter ended September.

The retail focussed non-banking financial company (NBFC) had posted a net profit of Rs 49 crore in same period a year ago and Rs 47 crore in the preceding quarter ended June 2020.

Revenue from operations also fell by 30 per cent to Rs 154 crore during the July-September period of 2020-21, as against Rs 220 crore in the same quarter of 2019-20, IndoStar Capital Finance said in a release.

Provisioning and accelerated write-offs for the quarter fell by 55 per cent to Rs 33 crore from Rs 72 crore earlier.

 

Gross and net NPAs stood at 2.9 per cent and 2.1 per cent, respectively.

IndoStar said it has one of the highest capital adequacy ratios amongst all listed NBFCs, strong liquidity position and a low debt-to-equity of 1.8X. The firm has further accelerated its retailisation strategy in a challenging market environment and has equipped itself with capital to pursue growth opportunities.

The company currently has liquid assets of around 36 per cent of its borrowings, sufficient to cover its repayment obligations for next 15 months, it said.

With a stable credit rating of AA-, the company has a strong liquidity pipeline and multiple avenues to raise further liabilities to finance additional growth, IndoStar said.

The firm's Executive Vice-Chairman and CEO R Sridhar said, "There are visible green-shoots in the economy, with consumer demand showing signs of an uptick and the rural economy performing well. These factors will provide a fillip to lending companies. We have charted a distinct trajectory of expanding our portfolio in the second-hand commercial vehicles, SME and affordable home finance segments."

IndoStar Capital said its collection efficiency has improved significantly during the quarter. The company focused on collection during moratorium period and reached close to 100 per cent collections in October 2020. It has re-started disbursements from November.

Stock of the company closed 1.70 per cent up at Rs 295.85 apiece on BSE.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Nov 05 2020 | 11:20 PM IST

Explore News