Indiabulls Housing Reports 26% Jump In Net Profit, Beating Estimates
Indiabulls Housing Finance bottomline stood at Rs 861 crore.
Mortgage lender Indiabulls Housing Finance Ltd.’s net profit rose for the fourteenth consecutive quarter, beating analyst estimates.
The home loan provider’s bottomline rose 25.8 percent to Rs 861 crore as compared to the same quarter last year, according to its stock exchange notification. The consensus of analyst estimates tracked by Bloomberg stood at Rs 814 crore.
Net interest income increased 27.1 percent at Rs 1,390 crore on a year-on-year basis. Revenue stood at Rs 3,067 crore, 22.2 percent higher than the corresponding period last year.
Non-performing assets dropped to their lowest level in 20 quarters, driven by increasing share of low-risk home loans. The mortgage lender’s gross bad loans improved to 0.78 percent of total assets from 0.8 percent last quarter while net non-performing assets remained unchanged at 0.31 percent as of September end. The Indiabulls Group subsidiary’s provisioning for bad debt fell 14.38 percent to Rs 139.2 crore over the previous three months.
The loan book grew at 33 percent on a year-on-year basis to Rs 1 lakh crore. The affordable housing segment, where houses are priced between Rs 30-60 lakh has continued to perform well, and is one of the major drivers of the loan book growth, Ashwini Kumar Hooda, deputy managing director at Indiabulls Housing Finance told Bloomberg Quint in an interview. The loan book will continue to grow at 30-35 percent in the coming quarters, he added.
Fund Raising Plans
The board approved a plan to issue secured non-convertible debentures for up to Rs 25,000 crore and unsecured NCDs for up to Rs 3,000 crore on a private placement basis, the company said in a separate press release. It also approved raising funds via rupee denominated overseas bonds and/or foreign currency denominated bonds.
OakNorth Bank Investment
Indiabulls Housing Finance’s investment in U.K. based OakNorth Bank is valued at $380 million in the last round of fund raising. The housing finance company had acquired a 40 percent stake in OakNorth Bank for $100 million in 2015. The bank is looking to launch an initial public offering over the 18-24 months, Hooda said but added there “no plans of increasing our stake in the bank, or putting investment in any other business apart from housing finance.”
Shares of Indiabulls Housing Finance stood at Rs 13,42.90 prior to the announcement.
Watch the full interview with Ashwini Kumar Hooda, deputy managing director at Indiabulls Housing Finance here.