Indostar Capital reports net loss of nearly Rs 37 cr in June qtr

New Delhi: Non-banking finance company Indostar Capital Finance (Indostar) on Thursday reported a net loss of Rs 36.8 crore in the quarter ended June 30, 2021. The company had registered a net profit of Rs 47.20 crore in the year-ago quarter ended on June 30, 2020.

Sequentially, the net loss was trimmed by 88 per cent from Rs 317.10 crore in the March 2021 quarter.

Its net revenues from operations were down at Rs 126.60 crore during the April-June quarter of 2021-22, as against Rs 149.60 crore in the same period of 2020-21, Indostar said in a release.

Pre-provisioning operating profit was of Rs 33.10 crore during the quarter, down from Rs 75.10 crore in year ago period.

The company said it will reduce its corporate book to less than 10 per cent of the AUM by March 2022. The asset under management (AUM) stands at Rs 7,888 crore. Indostar said, with share of retail at 77 per cent, the company is now looking at growth opportunities in commercial vehicle (CV) and affordable home finance.

In the CV business, the company will focus on used vehicle financing.

Indostar is well placed to take advantage of the replacement demand in the 5 to 12 years old segment plus the demand which will unfold on account of scrappage policy, it added.

Its gross and net non-performing assets (NPAs) stood at 4.5 per cent and 2.2 per cent, respectively, as of June 30, 2021.

R Sridhar, Executive Vice-Chairman & CEO, IndoStar, said: "With the second wave of Covid-19 behind us and the economy gradually returning to normalcy, lending businesses certainly have their work cut out...we will be expanding our market share in used CV."

Stock of Indostar closed 1 per cent higher at Rs 342.85 apiece on the BSE.