Indiabulls Housing Finance posts 14% fall in net profit; shares slip

Indiabulls Housing Finance share price: Shares of Indiabulls Housing Finance (NSE: IBULHSGFIN) declined over 1.6 per cent on NSE on May 23, a day after the company posted its March quarter (Q4FY23) numbers. At closing, Indiabulls Housing Finance’s scrip stood at Rs 111.45 apiece on the NSE, down 1.89 per cent.

The earnings release showed that the company posted a 14 per cent decline in consolidated net profit to Rs 263 crore for the March quarter against Rs 307 crore registered in the year-ago period. The company’s revenue during the quarter under review was down 5.2 per cent to Rs  2,077 crore from Rs 2,191 crore logged in the corresponding quarter of the previous fiscal. The housing finance company’s gross non-performing assets (NPAs) came down to 2.85 per cent at the end of March 2023 against 3.30 per cent a year ago.

Likewise, net NPA too declined to 1.89 per cent from 2.24 per cent of the total advances in the previous year.

“On a weekly chart stock has already performed very well after forming a double bottom pattern which is bullish in nature, double bottom is placed at the price of 90 levels. So the stock has already given more than 20 per cent returns in a short span of one and half months, so the trader can book profit at the current level and re-enter this stock in any future correction,” said Ganesh Dongre, Senior Manager – Technical Research Analyst, Anand Rathi Shares and Stock Brokers.

“The organisation is in the process of streamlining its corporate structure, and they are in the process of changing its brand name and focusing on retail mortgage financing. Additionally, the company has expanded its branch network by 40 per cent. The company’s performance suffered during the quarter due to a combination of two things, 11 per cent loss in interest income and an increase in provisioning by about 28 per cent, which impacted profitability,” said Aman Soni , Head of Operations, Prudent Equity.

Note: The above is provided for informational purposes only and should not be construed as financial or investment advice.

Indiabulls Housing Finance share price history

On a year-to-date (YTD) basis, Indiabulls Housing Finance stock has fallen over 27 per cent as compared to Nifty50’s rise of over 1 per cent. On a six-month basis, the stock has corrected 10 per cent against Nifty50’s rise of over 0.65 per cent.

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