Indiabulls Housing Finance reported a decline of 15.04 percent in its consolidated net profit for the fourth quarter of fiscal year 2022-23. The company recorded a profit after tax of Rs 260.60 crore, compared to Rs 306.75 crore in the same period of the previous year. Additionally, the company experienced a decrease of 5.20 percent in its net consolidated total income, earning Rs 2,077.13 crore in Q4 FY23. The company's total assets amounted to Rs 16,028.93 crore, with outstanding debt of Rs 31,114.47 crore and a debt-equity ratio of 2.96 as of March 31, 2023.
The consolidated net profit of Indiabulls Housing Finance recorded a decline of 15.04 percent in the final quarter of the fiscal year 2022-23. According to a BSE filing, the company reported a profit after tax of Rs 260.60 crore in Q4 FY23, which is lower than the Rs 306.75 crore they achieved in the same period of the previous year.
The company experienced a decrease of 5.20 percent in its net consolidated total income in Q4 FY23, earning only Rs 2,077.13 crore, compared to the Rs 2,191.13 crore it earned during the corresponding quarter of the previous fiscal year.
The board has approved the issuance of non-convertible debentures for up to Rs 5,000 crore, subject to regulatory approval. They may be secured or unsecured, listed or unlisted, and issued through private placement or public offering.
The Board reappointed Achuthan Siddharth as an independent director for five years, starting July 3, 2023. It accepted Ajit Kumar Mittal's resignation as non-executive, non-independent director effective May 22, 2023.
Reorganization and rebranding of the company
Due to its successful asset-light strategy, which has seen major progress over the past two years, the company holds only a minimal amount of the home loans it has distributed on its financial records. Additionally, the relevant rules and regulations have undergone changes, and after discussions with the RBI, it was agreed during the board meeting that the administration will present a restructuring proposal to the board.
The company's institutionalization will be strengthened through its reorganization and name change, allowing for a consolidation of its structure and simplification that will enhance its operational capabilities and financial ratios. The alignment of rules and regulations for HFCs and NBFCs is posing a potential disruption for the company's financial and operational well-being.
The company is currently considering various reorganization strategies that will lead to increased consolidation and expansion, improved adequacy ratios, decreased leverage, and better cost effectiveness. The company is planning to streamline its non-operational subsidiaries.
The corporation, along with its fully owned subsidiary firms, Indiabulls Asset Management Company (IAMCL) and Indiabulls Trustee Company (ITCL), has finalized an agreement with Nextbillion Technology (Nextbillion) to sell their complete share in the mutual fund management business of IAMCL and ITCL. ITCL acts as the trustee of IAMCL in this regard. The company has obtained all required authorizations for the deal and received the full payment of Rs 175.62 crore on May 2, 2023. Accordingly, as stated in the regulatory filing, the company does not possess any authority or stake in IAMCL or ITCL.
As of March 31, 2023, its total assets amounted to Rs 16,028.93 crore, with outstanding debt reaching Rs 31,114.47 crore and a debt-equity ratio of 2.96. In addition, its total debt amounted to 0.70 times its total assets. Its net profit margin was 11.10 percent. The percentage of gross non-performing assets (NPAs) was 3.71 percent, while the net NPAs stood at 2.48 percent.
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