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Source: cision | Published on: Tuesday, 30 April 2024
FY24 Annual Performance (Consolidated):
Q4 FY24 Highlights (Consolidated):
Q4 FY24 Highlights (Standalone - ICF):
Q4 FY24 Highlights (HFC - Subsidiary):
MUMBAI, India, April 30, 2024 -- IndoStar is a non-banking finance company (NBFC) registered with the Reserve Bank of India classified as a Middle layered NBFC, announced the audited financial results for the quarter and year end March 31, 2024, earlier today.
AUM Growth: The company has grown its retail AUM in its core CV and Affordable Housing businesses by 49% over the past year from ₹ 5,295 crore in FY23 to ₹ 7,864 crore at the close of FY'24. Consolidated AUM including assets in the legacy businesses, stood at ₹ 8,763 crore.
Asset Quality Improvement: The company has demonstrated significant improvement in asset quality over the last year, with consolidated Gross Stage 3 assets at 4.10% in FY24 vs. 6.77% in FY23. In particular, the standalone Gross Stage 3 assets improved significantly, from 8.06% in March 23 to 4.97% currently, driven by keen focus on CV and SME collections and structural steps taken to sell down non-performing assets in the legacy SME business.
Progress on some key strategic initiatives is detailed here:
Sale of stressed portfolio of SME and monetization of SRs
During the quarter, the company took a decisive step forward in reducing its stressed portfolio by selling a portion of its SME loan portfolio, aggregating to principal outstanding of ₹ 39.5 crore, to Encore Asset Reconstruction Company. The company also transferred a portion of its standard SME portfolio with a principal outstanding of ₹ 143 crore at par through Direct Assignment. In continuation of its efforts to focus on growing its interest-bearing assets, the company monetised its Security Receipts (SR) from a previous asset reconstruction transaction on its legacy CV book, realizing ₹ 96.6 crore.
Equity infusion update
During the quarter, the Board and shareholders approved a fundraise of INR 456.7 crore via preferential allotment of warrants to Brookfield Asset Management through one of its private equity funds ("Brookfield") and Florintree Tecserv LLP ("Florintree"). The company will receive 25% of the warrant subscription amount following customary regulatory approvals, with the remaining 75% being received within subsequent 18 months. Following the fund raise, Brookfield will retain its present shareholding in the Company.
Insurance Corporate agent update
During the quarter, the company received a certificate of registration to act as a Corporate Agent from IRDAI. This will allow the company to cross-sell insurance products to its customers, generating fee income.
Focus of Raising Liquidity
The company has made progress in improving its liquidity position, by raising incremental funding of ~ ₹ 1,845 crore in Q4 FY24. IndoStar maintains healthy liquidity, with cash and cash equivalents including investments in mutual funds and treasury bills of ₹ 940 crore, as on March 31, 2024. As the company accelerates its disbursement engine, it aims to raise a significant amount of debt, bringing its current low debt-to-equity ratio position closer to industry norms.
IndoStar Capital Finance Limited ("ICFL") (Standalone)
ICFL delivered a PAT of ₹ 20 crore in Q4 FY24, akin to its performance in Q3 FY24. The AUM for ICFL stands at ₹ 6,493 crore out of which the retail vehicle finance business is ₹ 5,594 crore. Disbursements during the quarter stood at ₹ 1,465 crore, up 31% from ₹ 1,121 crore in Q3 FY24. With a focus on collections through the quarter, Gross Stage 3 stands at 4.97% in Q4 FY24, down from 6.45% in Q3 FY24; Net Stage 3 decreased to 2.09% in Q4 FY24 from 2.78% in Q3 FY24. The company maintained a strong Capital Adequacy Ratio (CAR) of 28.9% on a standalone basis.
IndoStar Home Finance Private Limited ("IHFPL")
IHFPL delivered a PAT of ₹ 16 crore in Q4 FY24 vs ₹ 6 crore in Q3 FY24, aided by AUM growth and securitization transactions. The AUM in IHFPL stands at ₹ 2,270 crore in Q4 FY24, up from 2,047 crore in Q3 FY24. IHFPL continues to deliver on its core strategy of providing affordable housing loans in semi-rural and rural markets, while maintaining healthy asset quality. The company reported Gross Stage 3 assets at 1.1%. IHFPL has a Capital Adequacy Ratio (CAR) of 57.4%.
Key Performance Highlights (Consolidated): | ||||||||
Particulars (₹ in | Q4FY24 | Q3FY24 | Q-o-Q % | Q4FY23 | Y-o-Y % | FY24 | FY23 | Y-o-Y % |
Net Revenue | 282 | 134 | 110 % | 139 | 103 % | 710 | 599 | 19 % |
Operating | 139 | 119 | 17 % | 66 | 111 % | 492 | 401 | 23 % |
Pre-provision operating | 143 | 15 | 853 % | 73 | 96 % | 218 | 198 | 10 % |
Profit after tax | 35 | 17 | 106 % | 76 | (54 %) | 116 | 225 | (48 %) |
CAR (%) | 28.9 % | 30.4 % | - | 31.5 % | - | 28.9 % | 31.5 % | - |
Leverage (D/E) | 2.3 | 2.1 | - | 1.8 | - | 2.3 | 1.8 | - |
About IndoStar Capital Finance Limited
IndoStar is a non-banking finance company (NBFC) registered with the Reserve Bank of India classified as a Middle layered NBFC. With Brookfield & Everstone as co-promoters, IndoStar is a professionally managed and institutionally owned entity engaged in providing used and new commercial vehicle financing and affordable Home Finance through its wholly owned subsidiary, IndoStar Home Finance Private Limited.
For more information, visit www.indostarcapital.com.
Safe Harbor
This document is to provide the general background information about the Company's activities as at the date of the release. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any investor should subscribe / purchase the company shares. The Company makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information contained herein. This release may include certain forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. These statements can be recognized by the use of words such as ''expects", "plans", 'will", "estimates", "projects", or other words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, our ability to manage our international operations, government policies, regulations, etc. The Company does not undertake any obligation to revise or update any forward-looking statement that may be made from time to time by or on behalf of the Company including to reflect actual results, changes in assumptions or changes in factors affecting these statements. Given these risks, uncertainties and other factors, viewers of this release are cautioned not to place undue reliance on these forward-looking statements. This release may contain certain currency exchange rates and the same have been provided only for the convenience of reader.
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