India Shelter Finance Q3 Results Review - Strong Growth Albeit On A Low Base; Outlook Promising: Systematix

Systematix Report

India Shelter Finance Corporation Ltd.'s Q3 FY24 operational performance was healthy led by robust business growth and stable spreads, even as there was marginal deterioration in asset quality due to seasonality. Net interest income/OP came in at Rs 1.0 billion / Rs 0.9 billion registering a growth of 36% YoY/ 61% YoY.

Opex to assets under management ratio improved to 4.4% versus 4.8% in Q3 led by slower growth in other expenses and higher balance sheet growth. Provisions during the quarter stood at Rs 41 million, declined 23% QoQ, resulting in profit after tax of Rs 623 million (up 55% YoY / 4% QoQ).

The healthy operating performance was driven by strong AUM growth of 42% YoY / 8% QoQ. On the asset quality front, gross stage-III / net stage net stage-III asset ratio inched up by 20 basis points / 17 bps QoQ at 1.2% / 0.9%, on account of seasonality.

The management is confident of achieving 35% YoY growth in assets under management, which we believe is realistic given higher branch expansion and low base.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.