Quarter PBT of ₹ 1,388 Cr. up by 23.1%; PAT of ₹ 985.5 Cr. up by 8.9%
Mumbai, February 01, 2019: The Board of Directors of Indiabulls Housing Finance Ltd. (IBH), India’s second largest housing finance company, announced its unaudited financial results for the year ended December 31, 2018.
The numbers are reported under Indian Accounting Standards (Ind AS).
IBH’s Profit after Tax (PAT):
YoY Growth (%)
The above PAT for 9M FY18 and Q3 FY18 have been adjusted for profit from the sale of the stake in OakNorth Bank to GIC of Singapore, in Nov 2017. Also, in Q3FY19 there is a one-time tax incidence of ₹ 217 Cr. [spread across Q3 & Q4 of current FY] on account of redemption of long-term units of debt mutual funds
Full Corporate Social Responsibility [CSR] expenses of ₹ 69.2 Cr. for FY 2018-19 have been taken in Q3FY19, adjusted for CSR and credit costs, operating expenses for Q3FY19 was ₹ 255.0 Cr. compared with ₹ 261.1 Cr. in Q2FY19
An interim dividend of ₹ 10 per share of face value ₹ 2/-, amounting to 500%, has been declared in the board meeting held on January 31st, 2019. IBH is amongst the Top 15 dividend paying private companies in the country.
Highlights Q3 FY18-19
Business Going Forward
Asset Liability Management and Strong Liquidity Position
IBH closed December 2018 with cash and liquid investments of ₹ 21,090 Cr., in line with its principle of maintaining high liquidity on its balance sheet.
IBH reduced its 3-months CP outstanding to ₹ 4,670 Cr. which now constitutes to only 4% of its total borrowings, ensuring a long-term fully matched ALM.
As an operating principle, from Q4FY19 the total 3-month CPs of the company will not exceed 5% of its borrowings.
Over the past 36 months, IBH has demonstrated the depth of its diversified liabilities franchise by moving nimbly across instruments such as securitization, institutional bonds, retail bonds, ECB’s, Masala Bonds and Bank Term Loans based on macro conditions around liquidity and interest rates
Customer repayments in Q3FY19 were ₹ 7,431 Cr. The average customer repayments per quarter in the 3 quarters of this financial year is ₹ 6,523 Cr.
Mr. Gagan Banga, Vice Chairman, and MD, IBH commented that “We are on track to deliver 15%-16% PAT growth the current financial year. For the next financial year, FY2019-20 PAT will grow at between 17% and 19%. The core strategy of IBH’s business is to sell down pools of loans while retaining a spread door-to-door over the entire length of the loan. While total assets under management are expected to grow 20% – 25%, balance sheet growth is expected to be around 10%, this strategy will permit the company to maintain conservative leverage but at the same time allow it to deliver healthy RoEs.”
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