Q4 2025 IndoStar Capital Finance Ltd Earnings Call Transcript
Key Points
- Indostar Capital Finance Ltd (NSE:INDOSTAR) reported a strong AUM growth of 21% and PPOT growth of 23% for FY25.
- The company successfully launched its maiden retail NCD issue of INR266 crores, which was well received by the debt market investors.
- Indostar Capital Finance Ltd expanded its distribution network significantly by adding 54 new branches in Tier 3, 4, and 5 towns.
- The company has transitioned to a multiproduct branch model, launching a micro LAP business in Tamil Nadu, which is expected to grow significantly.
- Indostar Capital Finance Ltd has a strong capital adequacy ratio of 28.5% and a low leverage ratio of about 2x, providing ample room for future expansion.
- Collection efficiency in the CV business was weaker than expected for the March quarter, traditionally a strong period.
- The company experienced some softness in business and collections during the year, impacting operating performance.
- Indostar Capital Finance Ltd's cost-to-income ratio remains high at about 17%, prompting the launch of a cost optimization project.
- The company's net interest income for the quarter showed only a marginal increase, reflecting challenges in maintaining growth momentum.
- Provision coverage ratio on Stage 3 assets decreased to 47%, down from historical levels of around 55%.
Ladies and gentlemen, good day, and welcome to IndoStar Capital Finance Limited Q4 FY25 earnings conference call hosted by MUFG Intime India Private Limited. (Operator Instructions) I now hand the conference over to Mr. Aryan Somra.
Thank you. Good morning, everyone. I welcome you all to the Q4 and FY25 Earnings Conference Call for IndoStar Capital Finance Limited. Due to unavoidable circumstances, Mr. Karthikeyan Srinivasan couldn't attend the call.
To discuss the quarter's results performance, we have from the management team, Mr. Randhir Singh, Executive Vice President; Mr. Jayesh Jain, Chief Financial Officer; Mr. Shreejit Menon, CEO, Niwas Housing Finance Private Limited; and Mr. Pushkar Joshi, CFO, Niwas Housing Finance Private Limited.
Before we proceed with the call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For more details, kindly refer to the investor presentation and other filings that can be found on
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