Q2 2025 IndoStar Capital Finance Ltd Earnings Call Transcript
Key Points
- Indostar Capital Finance Ltd (NSE:INDOSTAR) announced the sale of its wholly owned subsidiary, IndoStar Home Finance Private Limited, for INR1,750 crore, which is expected to strengthen its core business focus.
- The company received a rating upgrade from CRISIL to stable, reflecting improved financial stability and creditworthiness.
- Indostar successfully raised INR266 crores through its maiden public issue of secured, redeemable, nonconvertible debentures, enhancing its liquidity position.
- The commercial vehicle disbursement for Q2 FY25 reached INR1,499 crores, showing a growth of 53% over the previous year.
- The company has made significant investments in technology, enhancing its end-to-end loan origination system to be digitally driven, which is expected to improve operational efficiency.
- The annual retail inflation rose to 5.49% in September, driven by food inflation, which could impact consumer spending and borrowing costs.
- The RBI's unchanged repo rate and tightening regulatory norms for bank funding to the NBFC sector could limit Indostar's access to funds.
- The company's gross non-performing assets (GNPA) stood at 4.97% for FY25 Q2, indicating challenges in asset quality.
- Collection efficiency was impacted by adverse weather conditions, such as extended monsoons, affecting vehicle movement and revenue.
- The company's operating expenses increased by 16% over the previous quarter, driven by workforce expansion and branch costs, which could pressure profitability.
Ladies and gentlemen, good day, and welcome to IndoStar Capital Finance Limited Q2 and H1 FY25 earnings conference call. (Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Mr. Viral Sanklecha from Orient Capital. Thank you, and over to you.
Thank you, Shilpa. Good afternoon, ladies and gentlemen. I welcome you for the Q2 and H1 FY25 Earnings Conference Call of IndoStar Capital Finance Limited.
To discuss this quarter's business 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, IndoStar Home Finance Private Limited; and Mr. Pushkar Joshi, CFO IndoStar Home Finance 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
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