Capital First posts 246 per cent jump in profit at Rs 104.6 crore

The company's profit after tax stood at Rs 30.2 crore in the year-ago period.

Non-banking finance company Capital First Friday reported a 246 per cent jump in its profit at Rs 104.6 crore in the quarter ended September, helped by strong loan growth. The company's profit after tax stood at Rs 30.2 crore in the year-ago period.

"We are happy to continue the steady growth in the loan assets and net profit for the company," it's chairman, V Vaidyanathan, said. The company's asset under management (AUM) stood at Rs 32,622 crore as on September 30, 2018, with its retail loan portfolio contributing to 91 per cent of its overall AUM. Its retail loan book grew 38 per cent to Rs 29,625 crores in the reporting quarter, up from Rs 21,429 crore in the same period last year.

Core income, which includes net interest income and fee income of the company, rose 49 per cent to Rs 695.2 crore, from Rs 467.2 crore last year. The growth in income was primarily driven by higher net interest income, which grew 55 per cent to Rs 615.3 crore, against Rs 398.9 crore in the year-ago quarter.

The company's gross non-performing asset, under the new accounting standard Ind-AS, stood at 1.94 per cent. Vaidyanathan said the amalgamation of Capital First with IDFC Bank is at an advanced stage and has received approvals from the Competition Commission of India, stock exchanges, the Reserve Bank of India, the shareholders as well as the creditors. The approval from the National Company Law Tribunals (NCLT) is awaited. "We are gearing up well to step into the world of banking through the completion of our merger with IDFC Bank, which should be completed soon," he added. The company's stocks ended 2.42 per cent down at Rs 451.35 apiece on the BSE Friday, against 1.01 per cent decline in the benchmark.