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Indiabulls Financial profit in Q2 up 79%

Indiabulls Financial profit in Q2 up 79%
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First Published: Tue, Oct 23 2007. 11 30 PM IST
Updated: Tue, Oct 23 2007. 11 30 PM IST
Mumbai: Financial services company Indiabulls Financial Services Ltd posted a 79% rise in its consolidated July-September net profit on better revenues from its consumer finance business and higher fee income, a senior official of the company said.
Indiabulls posted a net profit of Rs170 crore for the quarter against Rs95 crore in the year-ago period.
The consumer finance business contributed 67% of its revenues for the quarter, compared with 52% a year earlier, director Gagan Banga said on Tuesday. The average cost of funds for its consumer finance business has been 10.5-11%, while the yield on its advances has been 23% during the quarter, he added. “We are having a 10% post-tax return on assets (RoA),” he said.
Indiabulls’ total consumer loan outstanding as of the quarter ended September was Rs3,928 crore, compared with Rs504 crore in the corresponding period the previous year. “We are well on track of meeting our target of Rs6,000 crore worth of disbursals by the end of the fiscal and we disbursed Rs1,500 crore during the last quarter,” Banga said.
He said the company hoped to demerge its consumer finance business from the brokerage business by the end of the quarter ending December. “We have got the shareholders’ approval,” he said, adding the process required certain legal approvals. Indiabulls’ fee income during the quarter also grew more than three times to Rs45.5 crore, compared with Rs10.1 crore in the year-ago period. The fee income, which constituted income from advisory and selling third-part financial products, contributed 8% to its revenues for the quarter, as against 7% a year ago.
The revenues from the brokerage business, which constituted 26% of its total revenues, have also seen good growth, Banga said.
Indiabulls shares closed on Tuesday at Rs545.75—down 3.83% at the Bombay Stock Exchange.
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First Published: Tue, Oct 23 2007. 11 30 PM IST