IndoStar Capital Finance recorded a 31 per cent increase in net profit to Rs 51.6 crore for the quarter ending September 2022 on Tuesday.
In the previous fiscal year, the non-banking financial company earned a net profit of Rs 39.5 crore. However, profit was down 15 per cent from Rs 60.9 crore in the previous quarter ending June 2022.
Net revenues increased by 3 per cent to Rs 149 crore in the July-September quarter of 2022-23, compared to Rs 144.8 crore in the same period of 2021-22, according to an IndoStar announcement.
Net revenues declined 11 per cent sequentially from Rs 167 crore in the June 2022 quarter.
The quarter’s collections of Rs 870 crore resulted in a gross collection efficiency of 135 per cent.
AUM (assets under management) was Rs 7,908 crore, with capital adequacy at 34.1 per cent, 510 basis points better than in Q1 FY23.
According to the corporation, its debt/equity ratio of 1.8 times remains one of the lowest in the industry.
“The business has raised incremental investment of roughly Rs 2,527 crore in H1FY23 and continues to have a good liquidity position, with cash and cash equivalents at Rs 834 crore as of 30 September 2022,” it added.
This was evident in IndoStar’s Asset Liability Management (ALM) profile, which improved significantly from the previous quarter.
“In their limited review for the quarter ended 30 September 2022, the statutory auditors Deloitte Haskins and Sells (Deloitte) have removed their comment on going concern risk,” it said further.
IndoStar stated that the size of its stressed assets book had been lowered.
At 30 September 2022, the gross stage 3 assets and net stage 3 assets were 7.1 per cent and 2.9 per cent, respectively. “The corporation is continuing to make concerted efforts to lower its stress book.”
As part of its retailisation plan, IndoStar increased retail loans from 78 per cent in FY21 to 84 per cent in Q2 FY23.