indostar capital: IndoStar Capital Finance third quarter results: profit plunges 40% to Rs 15 crore

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New Delhi: IndoStar Capital Finance on Saturday reported a 40% drop in net profit to Rs 15 crore in the quarter ended December 2021 as it set aside a substantial amount for provisions and write-offs. The non-banking finance company had recorded a net profit of Rs 24.2 crore in the corresponding quarter of the previous financial year.

Total operating income increased by 4% to Rs 163.8 crore in the October to December quarter of FY22 from Rs 156.8 crore in the third quarter of FY21, IndoStar Capital said in a statement.

For the quarter, the company set aside Rs 42.7 crore for provisions and accelerated write-offs compared to Rs 46.2 crore set aside for the prior year quarter.

The AUM stands at Rs 9,236 crore, up 8% from the previous quarter, despite a gradual reduction in the corporate loan portfolio, which the company plans to reduce further. The company aims to be a 100% retail business, he added.

In line with its retailization strategy, the retail share is now 82%, compared to 75% last year.

Despite a cyclical slowdown in commercial vehicles and in the introduction of BS-VI, the segment remains profitable, underlining the quality of the commercial franchise.

Deep Jaggi, CEO of IndoStar Capital Finance, said, “We have been working to expand our presence across the country and we will leverage technology to its fullest potential to realize our ambitions. Our internal focus coupled with a gradual upgrade and accelerating economy positions us well to capitalize on the huge post-pandemic opportunity.”

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