IndoStar Capital Finance Q3 profit plunges 40%

New Delhi: IndoStar Capital Finance on Saturday reported a 40 per cent decline in its net profit to Rs 15 crore in the quarter ended in December 2021 as it parked aside a substantial amount towards provisions and write-offs.

The non-banking finance company had posted a net profit of Rs 24.2 crore in the corresponding quarter of the previous financial year.

Total revenue from operations was up by 4 per cent to Rs 163.8 crore in the October-December quarter of FY22 against Rs 156.8 crore in Q3FY21, IndoStar Capital said in a release.

For the quarter, the company put aside Rs 42.7 crore towards provisions and accelerated write-offs against Rs 46.2 crore reserved for the year-ago quarter.

The AUM stands at Rs 9,236 crore, up 8 per cent against the previous quarter, despite gradual reduction in the corporate lending book, which the company plans to reduce further. The company aims to be a 100 per cent retail company, it added.

In line with its retailisation strategy, the share of retail is now 82 per cent up from 75 per cent last year.

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

Deep Jaggi, CEO, IndoStar Capital Finance said: "We have undertaken an endeavour of expanding our presence to the length and breadth of the country and will leverage technology to its fullest potential in fulfilling our ambitions. Our internal focus coupled with a gradual up-tick in the economy positions us well to capitalise on the tremendous post pandemic opportunity."