Indostar Capital Finance Reports 54% Growth in AUM in Q1FY19 | CORPORATE ETHOS

Indostar Capital Finance Reports 54% Growth in AUM in Q1FY19

By: | August 11, 2018
IndoStar Capital Finance Limited

Aug 11: IndoStar Capital Finance Limited (IndoStar), one of India’s leading non-banking financial companies, announced its consolidated financial results for the quarter ended June 30, 2018. The NBFC saw a 54% rise YoY in its AUM from Rs. 4,968.1 Cr to Rs. 7,640.2 Cr in Q1 FY19. The company reported a Total Income of Rs. 141.6 Cr in Q1 FY19, a rise of 31% from Rs. 107.9 Cr in Q1 FY18.

Consolidated financial update for the quarter ended June 30, 2018:-
-.Strong disbursement growth, Rs. 2,260.6 Cr up by 3x YoY.
-Corporate Lending disbursement is Rs. 1,534.9 Cr, up 3.6x YoY.
-Retail Lending is Rs. 725.7 Cr, up 2.1x YoY.
-Vehicle Financing run rate ~Rs. 110.0 Cr/ month.
-Transition to Retail Lending continues, 71 Corporate Lending: 29 Retail Lending vs. 74:26 QoQ.
-Strong Asset Quality maintained; GNPA 1.2%, NNPA 1.0%.

Key company developments:
·The company’s total strength is 1,431 people as of June 30, 2018 after adding 337 employees in Q1 FY19.
·IndoStar’s retail business has strong presence in 129 locations after adding 38 branches in Q1 FY19
With growth in retail business the customer base has increased in retail lending from 560 in Q1 FY18 to 8,714 in Q1 FY19.

Commenting on the results, Mr. R. Sridhar, Executive Vice – Chairman and CEO, said, “IndoStar has created a strong branch network of 129 branches and IT infrastructure to scale the retail lending business. Once initial investment in retail business build out crosses break even, profitability metrics will considerably improve. We see a huge opportunity in Corporate Lending, Vehicle Financing, SME Financing and Housing Finance.”