Indostar Capital touches an all-time high retail disbursement of Rs 1,456 crore for the quarter!

The affordable housing segment continues to perform strongly. An up-tick in the economy and the execution of the already announced scrappage policy will provide additional impetus for growth.

IndoStar Capital Finance Limited (IndoStar), one of India’s leading retail non-banking financial companies announced its Q3FY22 results today. The AUM stands at Rs 9,236 crores, up 8 per cent against previous quarter, despite gradual reduction in the corporate lending book, which the company plans to reduce further. The Company aims to be 100 per cent Retail Company. IndoStar’s business transition from corporate to retail franchise coincided with Covid. IndoStar however is now at an inflexion point and much closer to a profitable, high growth path than ever before.

In Q3FY22, the company touched an all-time high retail disbursement of Rs 1,456 crores for a quarter, and collection efficiencies remained above 100 per cent.

Retail AUM stood at Rs 7,594 Crores - up from Rs 6,922 Crores from Q2FY22. Retail lending now stands at 82 per cent of total AUM. In line with its retailisation strategy, the share of retail is now 82 per cent up from 75 per cent last year. Despite a cyclical slowdown in commercial vehicles and in the introduction of BS-VI, the segment remains to be profitable, underscoring the quality of the retail franchise. The affordable housing segment continues to perform strongly. An up-tick in the economy and the execution of the already announced scrappage policy will provide additional impetus for growth.

Pan India Expansion

Keeping in line with previous guidance, the company continued to expand its branches, focusing on untapped markets in North, East and North-East India, to supplement strong presence in South and West India. Following a hub and spoke model for expansion, special emphasis has been laid on integrating the new branches with the company’s digitization initiative, aimed at reducing operating costs and enhancing customer experience. With 65 new branches in Q3, total branch strength is now at 343 across the country.

Stable credit rating and robust liquidity pipeline

The company currently has liquid assets of around 14 per cent of its borrowings. With a credit rating of AA- with stable outlook, even in the current challenging times, the company has a strong pipeline and multiple avenues to raise further liabilities to finance additional growth.