MUMBAI: Tata Capital has reported a muted set of numbers with consolidated net growing at a muted 2 percent to Rs 1,097 crore for the September quarter. In its maiden earnings announcement on Tuesday after the recent listing, wherein the market gave a tepid response to the biggest issue from the non-baking space till date, raising Rs 15,512 crore.
The share got listed flat at the issue price of Rs 326 and managed to gain a premium of a paltry 1.23 percent of Rs 330, making it one of the worst IPOs this year. The stock closed Tuesday with marginal gain of Rs 330.60. The Tata group firm said revenue from operations rose around 8 percent to Rs 7,737.18 crore, while expenses grew around 10 percent to Rs 6,246.15 crore.
The key net margin slightly fell to 14.18 percent during the quarter under review, from 14.97 percent. Assets under management stood at Rs 2.44 trillion, a sequential rise of 2.7 percent. The company said asset quality in unsecured retail has started showing improving trends. Notably, retail unsecured forms 11.6 percent of the gross loan book. Gross NPA and net NPA ratios were 1.6 and 0.6 respectively, in line with Q1 levels.
Despite all-round muted numbers, Rajiv Sabharwal, managing director, claimed that the earnings are “strong, marked by broad-based momentum with credit quality remains robust across categories, resulting in 30 bps drop in annualized credit cost.” On the macro front, he expects the recent GST rate cuts to provide a fillip to consumption, creating a supportive environment for higher growth in second half.
Talking about the Tata Motors Finance acquisition, which was completed on May 8 this year, Sabharwal said the management is focused on stabilising key business metrics before accelerating growth and the integration is progressing well and remains on track with our plan. “We aim to achieve a turnaround in the Motor Finance business and return to profitability by Q4," he added.
