Indiabulls Housing Finance posts positive YoY results

Indiabulls Housing Finance, the second largest housing finance company by market capitalisation, has posted its Q1FY17 results. Company has posted marginally higher revenues but has witnessed a de-growth in profits; year on year growth has seen positive momentum. The company simultaneously has declared interim dividend of Rs 9/ share on FV of Rs 2/share.

The stock of Indiabulls Housing Finance has opened on a flat note at 737 levels, but has seen a flick tick rise of nearly 4.5 per cent soon after the results were announced; and dropped again to close with nearly a per cent of gain. The stock on July 25 gave a prolonged price consolidation breakout but could not sustain on a closing basis.

Company’s Q1FY17 consolidated revenues have come more or less in line with the previous quarter at Rs 2261.34 crores as against Rs 2232.97 crores, an increase of just 1 per cent. With fall in other operating income, total income from operations (net) has dropped 1 per cent. Company’s QoQ EBITDA stands at Rs 2055.38 crores as against 1999.81 crores in the previous quarter, an increase of 2.7 per cent.

Company’s interest cost amounts to nearly 68 per cent of the EBITDA. Net profits have dropped from Rs 675.50 crores in Q4FY16 to Rs 630.06 crores for Q1FY17, a decrease of 6.7 per cent amid rise in tax and interest and a drop in other income.

The year on year revenues have grown almost 28 per cent from Rs 1765.59 crores in the corresponding quarter of previous year. The net profits too have risen 23 per cent from Rs 511.27 crores in Q1FY16.