Indiabulls Housing slips despite 2nd dividend
Shares of Indiabulls Housing Finance are trading down by over a percent at Rs. 672 on the NSE, retreading from its 52 week high price of 682.20, made in opening trade, ahead of result announcement. While company’s operating income grew 1% QoQ to Rs. 1,766 crore, due to rise in finance cost, net interest income contracted 7% QoQ to Rs. 627 crore for three months ended 30th June 2015. Loan asset rose 3.4% sequentially to Rs. 54,000 crore.
Despite much lower provisions of Rs. 59 crore, as against Rs. 155 crore in Q4FY15 and Rs. 65 crore in Q1FY15, net profit fell 7% QoQ to Rs. 511 crore, leading to EPS of Rs. 14.38. Company books remain healthy, with gross and net NPAs being maintained at 0.85% and 0.36%, same as that on 31-3-15. It has provided in excess of regulatory requirements, with provision coverage ratio of 137%.
A second interim dividend of Rs. 9 per share has been announced on equity share bearing face value of Rs. 2 each, subsequent to first interim dividend of Rs. 9 each declared in April this year. This is probably the only listed company, and definitely the only housing finance company, to declare 4 dividends each year, entailing payout ratio of over 75% last fiscal. Despite healthy dividend outgo, due to decline in profitability, market has given a thumps down to the result. Another pointer not o be forgotten was the handsome run-up in share price (making new 52 week high) in anticipation of good Q1 numbers.