Indiabulls Housing PBT down 37%

Indiabulls Housing Finance has reported a 37 per cent decline in pre-tax profit for the March quarter (Q4FY20), on a stand-alone basis. The fall was driven by extra provisions made on account of Covid-19.

The lender reported pre-tax profit of ~789 crore in Q4, against ~1,252 crore in the same period last year. Net profit declined 20.77 per cent to ~693.53 crore, from ~875.39 crore.

The lender made extra provisions of ~700 crore, equivalent to 1 per cent of the loan book. It has raised more than ~9,000 crore in the last three months via bond issuances, term loans from banks, and securitisation. The amount raised in the last three months represents 12.5 per cent of total liabilities.

Further, the board has approved a proposal for fundraising through qualified institutional placement or foreign currency convertible bonds, up to $300 million.

Gross non-performing assets stood at 1.8 per cent of the loan book in Q4. Total provisioning made towards bad loans stood at ~3,741 crore, against ~1,574 crore in Q4FY19. The loan book shrunk almost 24 per cent by the end of Q4FY20 to ~69,676 crore, from ~91,530 crore last year.

“The firm has also recorded fair value impairment of ~636 crore on AT-1 bonds of YES Bank, to record the effect of the scheme of reconstruction announced by the RBI,” it said.

Indiabulls Housing has effectively achieved zero net-npa status and now carries ~2,391 crore in extra provisioning — representing 3.4 per cent of the loan book — for navigating through Covid-19 and the post-covid period,” it added.

Total revenues, on a stand-alone basis, slumped 30 per cent to ~2,620 crore from ~3,756 crore. Its asset composition comprises 64 per cent of housing loans and 36 per cent non-housing loans. Capital adequacy ratio at the end of the March 2020 quarter stood at 27.1 per cent.