IndoStar Capital Finance Limited (IndoStar), one of India's leading nonbanking financial companies, announced its consolidated financial results for the quarter ended September 30, 2019.
IndoStar posted a PAT of Rs.494 mn in Q2 FY20 driven by healthy performance by the retail businesses. The Net Revenue from operations was clocked at Rs. 2,197 mn, up 19% YoY. Commercial Vehicle Finance remains a key segment; clocking higher profitability. The innovative tie-up with ICICI Bank has started yielding results with disbursements clocking Rs 1,653 mn in Q2FY20.
IndoStar enjoys strong liquidity position with over Rs 10,000 mn of liquidity reserves, positive ALM across all buckets and capital adequacy at 25.7%. Long term credit ratings have been reaffirmed at AA-.
Asset quality has improved with reduction in Gross NPAs from 4.7% in Q1 to 3.7% in Q2. IndoStar has also strengthened provisions against select accounts in Corporate Lending to account for macro-economic headwinds.
Indostar Capital's Executive Vice - Chairman and CEO Mr. R. Sridhar, said, "Our retail strategy is progressing well as per plan and we plan to move to retail: corporate mix of 75:25 early next year from 66:34 currently. All segments are profitable, we have declared an interim dividend of 10%. Our incremental funding in Q2FY20 was sequentially higher and we have cash and cash equivalents of ~ Rs. 10,000 mn, ensuring we have positive ALM across all buckets. With a comfortable liquidity position and strong operating model, we are poised for the next phase of growth in our journey."
Shares of Indostar Capital Finance Ltd was last trading in BSE at Rs.201.25 as compared to the previous close of Rs. 198.35. The total number of shares traded during the day was 10333 in over 882 trades.
The stock hit an intraday high of Rs. 215 and intraday low of 200. The net turnover during the day was Rs. 2110064.