Indiabulls Housing Finance Q4 PAT jumps 11% to Rs 307 cr

Mortgage financier Indiabulls Housing Finance Company reported an 11.23% increase in profit after tax (PAT) to Rs 307 crore for the fourth quarter ended March 2022 on the back of lower cost of credit and higher profits from its co-lending activity.

The company had posted an after-tax profit of Rs 276 crore in the prior year quarter.

“Earnings increased on the back of lower cost of credit and higher profits from co-lending and securitization activities,” said its deputy managing director, Ashwini Kumar Hooda.

The home loan financier said it disbursed Rs 2,962 crore in the second half of FY22 through co-loans. It also initiated a co-loan request for Rs 15,000 crore in FY23 from seven existing partnerships. The company is on track to disburse Rs 15,000 crore in FY23 and Rs 20,000 crore in FY24, according to a statement.

Its loan book decreased by 10% to Rs 59,333 crore in the fourth quarter of FY22 from Rs 66,047 crore a year ago. The company’s gross non-performing assets (GNPA) were 3.21% in the fourth quarter of FY22 compared to 2.86% a year ago. The net NPA was 1.89% versus 1.55%.

Hooda said the main stress came from the business loan portfolio.

Capital adequacy stood at 32.6% and Tier 1 at 27.2%.

Its incremental borrowing cost fell from 8.34% to 7.85%.

The company plans to borrow Rs 25,000 crore in the current financial year, Hooda said.

It has voluntarily set up a reserve fund for the repayment of $350 million of its dollar obligations, due on May 28, 2022. Unlike the original plan to transfer Rs 2,048 crore, or about 75% of the total proceeds to the maturity of these bonds, to a debt repayment trust, the company has fully pre-funded its dollar obligations in the trust.

It instructed the repayment administrator and banks to use proceeds from pre-funded fixed deposits to fully meet repayment obligations, according to the statement.

The mortgage financier said it had moved forward with its plan to set up alternative investment fund (AIF) platforms to start disbursing new wholesale loans again. It has received approval for such an AIF fund from the Securities and Exchange Board of India (Sebi) in partnership with a leading global alternative investment firm. The fund will launch in the first half of FY23.

A second AIF fund, in partnership with another global alternative investment firm, is in the process of gaining approval from Sebi. “We expect approval to be received by the end of May 22 and aim to begin disbursing through this fund beginning in the second quarter of FY23,” the company said, adding that it will also establish a third AIF fund, for which it will file paper with Sebi in Q1 FY23.

The company’s shares closed at Rs 120.20 each, up 3.48% on BSE.