IndoStar Capital Finance Ltd
NSE:INDOSTAR
IndoStar Capital Finance Ltd
Indostar Capital Finance Ltd. operates as a non-banking financial company. The company is headquartered in Mumbai, Maharashtra and currently employs 1,932 full-time employees. The company went IPO on 2018-05-21. The Company’s segments include Large Corporate, Small and Medium Enterprise (SME), Commercial Vehicle, and Housing Finance. The Large Corporate segment provides loans to medium and large-sized corporates, institutional customers and real estate developers. The SME segment provides lending to small and medium enterprises for business financing needs, including working capital, business expansion or other requirements. The Commercial Vehicle segment primarily consists of financing for used and new vehicles. The Housing Finance segment consists of affordable home financing to self-employed and salaried customers. The Company’s subsidiaries include IndoStar Asset Advisory Private Limited, which is primarily engaged in the business of investment advisory and asset management services, and IndoStar Home Finance Private Limited, which is engaged in the housing finance business.
Indostar Capital Finance Ltd. operates as a non-banking financial company. The company is headquartered in Mumbai, Maharashtra and currently employs 1,932 full-time employees. The company went IPO on 2018-05-21. The Company’s segments include Large Corporate, Small and Medium Enterprise (SME), Commercial Vehicle, and Housing Finance. The Large Corporate segment provides loans to medium and large-sized corporates, institutional customers and real estate developers. The SME segment provides lending to small and medium enterprises for business financing needs, including working capital, business expansion or other requirements. The Commercial Vehicle segment primarily consists of financing for used and new vehicles. The Housing Finance segment consists of affordable home financing to self-employed and salaried customers. The Company’s subsidiaries include IndoStar Asset Advisory Private Limited, which is primarily engaged in the business of investment advisory and asset management services, and IndoStar Home Finance Private Limited, which is engaged in the housing finance business.
Disbursement Growth: Disbursements rose 20% quarter-over-quarter to INR 1,117 crores, driven by strong momentum in vehicle finance and Micro LAP segments.
Asset Quality Improvement: Delinquency rates on new loan cohorts post-policy tightening are nearly 50% lower than previous periods, with notable improvement in customer credit profiles.
Profit Impacted by One-off: Net profit for the quarter was INR 8.3 crores, lower than the previous quarter due to a INR 4.8 crore onetime wage code impact.
Funding & Leverage: The company remains underlevered with a 1.2x debt-to-equity ratio and strong capital adequacy at 14.4%, providing ample room for growth.
Cost of Funds Declining: Incremental cost of borrowing dropped to 9.1% from 10.2% last year, and total cost of funds eased to 10.3%.
Guidance & Growth Plans: Management targets doubling Micro LAP AUM next year and maintaining 20% growth momentum in disbursements, supported by branch expansion and a larger sales team.
NIMs Stable: Despite lower yields in newer, prime segments, net interest margins remain stable due to falling funding costs.
