Q3 2025 IndoStar Capital Finance Ltd Earnings Call Transcript
Key Points
- Indostar Capital Finance Ltd (NSE:INDOSTAR) reported a consolidated PAT growth of 64% year-on-year for Q3 FY25.
- The company achieved an AUM growth of 32% to INR10,625 crores and disbursements increased by 17% year-on-year to INR1,572 crores.
- The cost of borrowings was reduced by 110 basis points over the last year, indicating improved financial efficiency.
- Retail lending now constitutes about 98% of the total loan portfolio, showcasing a successful retail lending strategy.
- The company maintains a strong capital adequacy of 28.5% and a debt-to-equity ratio of 2 times, providing a solid foundation for future growth.
- The RBI's MPC revised its growth forecast for the fiscal year downward to 6.6%, indicating potential economic challenges.
- The GNPA stood at 4.9% for the stand-alone entity, with collections impacted by heavy rains affecting truck movement.
- Credit costs increased significantly to 2.6% in Q3 FY25, reflecting higher delinquencies.
- Collection performance was impacted by heat waves, extended monsoons, and a sluggish economy, leading to increased delinquency levels.
- The cost of funding remains high at 10.8%, despite efforts to reduce it, impacting overall profitability.
Ladies and gentlemen, good day, and welcome to the IndoStar Capital Finance Limited's Q3 and nine Months FY25 Earnings Conference Call. (Operator Instructions)
I now hand the conference over to Mr. Viral Sanklecha from Orient Capital. Thank you, and over to you, sir.
Thank you, Reo. Good afternoon, ladies and gentlemen. I welcome you for the Q3 and nine months FY25 earnings conference call of IndoStar Capital Finance Limited. To discuss this quarter's results performance, we have from the management Mr. Randhir Singh, Executive Vice Chairman; Mr. Karthikeyan Srinivasan, Chief Executive Officer; Mr. VinodKumar Panicker, Chief Financial Officer; Mr. Shreejit Menon, CEO, Niwas Housing Private Limited; and Mr. Pushkar Joshi, CFO, Niwas Housing Private Limited.
Before we proceed with this 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 detail, kindly refer to the investor
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