India Shelter Finance Corporation Limited (ISFC) has reported remarkable financial results for the second quarter of fiscal year 2025, showcasing a strong growth trajectory across its core financial metrics. The company’s Board of Directors approved the unaudited results for the quarter and half-year ending on September 30, 2024.
India Shelter’s Assets Under Management (AUM) reached Rs. 7,039 crore, reflecting a robust 36% year-on-year (YoY) growth compared to Rs. 5,181 crore in Q2FY24. Disbursements also saw a significant boost, rising 30% YoY to Rs. 828 crore, spurred by ISFC’s strategic expansion of its branch network and increased branch productivity. During Q2FY25, ISFC expanded its footprint by opening 24 new branches, bringing its total to 260 branches across 15 states.
This expansion strategy is integral to its ongoing growth, with CEO Rupinder Singh noting that the disbursement increase aligns with the improved branch productivity and maturation of its network. He further highlighted that the recent credit rating upgrade by ICRA from A+ to AA-Stable will enable ISFC to optimize its funding costs moving forward.
The profitability metrics were equally impressive, with Profit After Tax (PAT) for Q2FY25 soaring 50% YoY to Rs. 90 crore from Rs. 60 crore in Q2FY24. The Return on Assets (RoA) rose to 5.6% in Q2FY25 from 5.1% in the same quarter last year, while the Return on Equity (RoE) stood at 14.8%. In terms of liquidity, ISFC maintains a strong position with a liquidity reserve of Rs. 1,192 crore as of September 2024, supported by a stable cost of funds at 8.8%.
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Asset quality remains sound with Gross Stage 3 and Net Stage 3 ratios at 1.2% and 0.9%, respectively, while the 30+ Days Past Due (DPD) stands at 3.6%. Credit cost for the quarter was held at a modest 0.5%, reflecting ISFC’s prudent risk management practices. The company’s net worth has also strengthened, standing at Rs. 2,489 crore as of September 2024.
This quarter’s results underscore ISFC’s consistent performance in delivering sustainable growth and enhancing profitability, all while maintaining solid asset quality.
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