Indiabulls Financial Q1 PAT up by 81%

Indiabulls Financial Services Q1 PAT rises by 81% on a Total Revenue of Rs 471 Cr

Indiabulls Financial Services (IBFSL), one of India’s leading and fastest growing private sector financial services company, today announced the unaudited results for the quarter ended June 30, 2010.


The Consolidated Total Revenues stood at Rs. 471.09 crores in Q1 FY 11 while the Profit After Tax was at Rs. 133.63 crore on the back of sustained momentum in loan disbursals and declining Cost-Income ratio achieved through falling costs of borrowing of funds for disbursement. IBFSL is one of the best capitalized NBFCs with a CRAR of 28.48% and has garnered the wherewithal to compete profitably with established players in the home loans market. The quality of its debt too has increased through a planned shift towards longer termed debt at competitive rates.

The Q1 FY 2011 also saw the net worth of IBFSL standing at Rs 4559 crores, showing a growth of 25.4% as compared to the first quarter last fiscal. The Basic Earnings Per Share (EPS) for Q1 FY11 was at Rs 4.42 per share as opposed to Rs 2.99 per share last quarter. Loan Assets have grown 47.4% to Rs 12,535 crores as of June 30, 2010 from Rs 8505 crores in June 30, 2009. Fresh disbursements for the quarter were up 238% at Rs 3,188 crores from Rs 943 crores in Q1 FY 10. The Net Interest Income (NII) for the current quarter was at Rs 265 crores up 40.2% from Rs 189 crores as of June 30, 2009. Mortgage loans, which are of long tenure, will result in sustained asset growth for the company. The quarter saw increasing share of low-risk mortgage loans to over 2/3 of its portfolio. Growth in mortgage loans will lead to lower provisioning costs for the company.

The company received AA (Stable) Rating from ICRA (An Associate of Moody’s Investors Service) and CARE which will contribute towards efficient management of cost of funds as the company enhances its borrowing programme to fund its expanding loan portfolio. In July 2010, IBFSL raised Rs 1,260 crores from allotment of 3 years secured redeemable Non-Convertible Debenture (NCD) to leading banks, PFs and Financial Institutions. The company’s liability profile witnessed shift towards long term debt and NCDs from large number of public sector banks and financial institutions at competitive rates. The Company will continue to further focus on diversifying its sources of funding.

Regards,
Free Indian Stock Tips Team