Indiabulls Housing Finance net profit resorted to a long jump: surged by 26 per cent

Indiabulls Housing Finance, a leading private housing financial service provider, reported a 26 per cent increase in consolidated net profit, rising to Rs 602.4 crore in the quarter ending 31 December, up from the corresponding review period last year, due to a spurt in Net Interest Income.

Consolidated revenue during the period grew by 24.4 per cent to Rs 2,307.7 crore from Rs 1,854 crore in the same period of last year.

Net Interest Income (NII), is the difference between interest earned on loans and that paid on deposits, and this saw a jump of 30.4 per cent to Rs 971.3 crore in Q3FY16 as against Rs 745 crore in Q3FY15.

On asset quality front, the company’s gross and net Non-Performing Assets (NPAs) stand at 0.83 per cent and 0.35 per cent of the total advances, respectively, which have remained stable as compared with the Q2FY16.

For nine months ended December 31, 2015, the company’s consolidated net profit grew by 23.6 per cent to Rs 1,669.2 crore; and Net Interest Income (NII) grew by 30.3 per cent to Rs 2,677.3 crore.

The company also recommended a fourth interim dividend of Rs 9/-per share of face value of Rs 2/- along with third quarter result.

As of December 31, 2015, the company’s borrowing grew by 28.5 per cent to Rs 56,217 crore and out of this, share of funding through bank loan stands at 49 per cent; through bonds at 31 per cent; and remaining through others.

Going ahead, the company intends to increase the share of funding raised via bonds and wants to decline its exposure to banks. This would help the company offset declining yields and help maintain spreads at around 320 bps.

On valuation front, the stock is currently trading at 2.76 times of the book value, which is Rs 250.1 per share as on December 31, 2015.

The results were declared after market hours. On Wednesday, the scrip has closed Rs 6.25 or 0.90 per cent lower at Rs 689.15.