The Indiabulls Finance Centre, developed by Indiabulls Real Estate Ltd., stands in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Q3 Results: Indiabulls Housing Finance Profit Falls, Makes Rs 330-Crore Supertech Provisions

Indiabulls Housing Finance Ltd. reported a stable set of third-quarter earnings.

Net profit declined 13.7 percent year-on-year to Rs 985.51 crore in the quarter ended December. Adjusted for profit from the sale of stake in OakNorth Bank to GIC of Singapore in the year-ago quarter, profit growth stood at 8.9 percent, the company said in a BSE filing.

Revenue rose 23.9 percent on a yearly basis to Rs 4,236.8 crore during the three months ended December.

“We are on track to deliver 15-16 percent profit after tax growth in the ongoing financial year. For the next financial year, PAT will grow at between 17 percent and 19 percent,” Gagan Banga, vice chairman and managing director of Indiabulls Housing Finance, said.

Gross bad loans at the end of December quarter stood at 0.79 percent against 0.77 percent in the year-ago quarter.

Meanwhile, the company made Rs 330 crore provisions on Supertech account.

"Though IBH’s loan is a standard asset, this is taken as a matter of abundant caution considering issues with other projects of Supertech Limited. We are confident of recovering these monies over a period of time as our loans are on specific ring-fenced projects exclusively mortgaged to us," the company said.

The non-bank lender also hopes to recover Rs 200 crore from Palais Royale in the fourth quarter.

Its board approved an interim dividend of Rs 10 apiece.