Sammaan Capital Limited (formerly Indiabulls Housing Finance Limited) has reported a consolidated net profit of ₹334.30 crore for the first quarter, marking a slight increase from ₹326.76 crore in the same period last year. The company's financial performance shows resilience amid changing market conditions.

Key Financial Highlights

Strengthening Capital Position

Sammaan Capital's balance sheet remains robust with a net worth of ₹22,106.00 crore as of June 30. The company maintains a capital adequacy ratio of 29.17%, well above regulatory requirements, indicating strong solvency and capacity for future growth.

Asset Quality and Loan Book

The company's total Assets Under Management (AUM) stood at ₹62,378.00 crore, with the growth AUM at ₹38,897.00 crore. The legacy loan book continued its planned reduction, decreasing to ₹23,481.00 crore from ₹24,894.00 crore in the previous quarter.

Debenture Issuance Enhances Liquidity

Sammaan Capital successfully allotted 9,000 secured, rated, listed, taxable, redeemable non-convertible debentures (NCDs) worth ₹90.00 crore through private placement. These NCDs, each with a face value of ₹1.00 lakh, carry a 9.60% annual coupon rate and a 10-year tenor, maturing on August 14, 2035.

Key features of the NCD issuance include:

• Annual interest payments starting August 14, 2026
• Secured by hypothecation of the company's financial and non-financial assets
• Minimum security cover of 1.1 times the principal amount and interest
• Proposed listing on NSE and BSE

Monitoring Agency Reports for Rights Issue and QIP

Sammaan Capital Limited has submitted monitoring agency reports detailing the utilization of proceeds from its Rights Issue and Qualified Institutional Placement (QIP).

QIP Proceeds Utilization

• Total raised: ₹12,648.90 crore
• Allocation:
  • ₹9,593.90 crore for augmenting capital base (fully utilized)
  • ₹3,055.00 crore for general corporate purposes
• Remaining unutilized: ₹15.94 crore from general corporate purposes

Rights Issue Proceeds Utilization

• Total raised: ₹36,134.68 crore
• Allocation:
  • ₹27,341.10 crore for capital base augmentation
  • ₹8,793.58 crore for general corporate purposes
• No utilization occurred during the reported quarter
• Remaining unutilized:
  • ₹232.29 crore for capital base augmentation
  • ₹71.36 crore for general corporate purposes

CRISIL Ratings Limited, serving as the monitoring agency, reported no deviations from stated objectives for both issues.

Management Commentary

Gagan Banga, Vice-Chairman, Managing Director & CEO of Sammaan Capital, stated, "Our Q1 results demonstrate the resilience of our business model and the success of our strategic initiatives. The recent NCD issuance further strengthens our liquidity position, allowing us to capitalize on growth opportunities in the mortgage finance sector."

Future Outlook

With a strong capital position, improving asset quality, and enhanced liquidity through recent debt issuances and capital raising activities, Sammaan Capital is well-positioned to navigate the evolving financial landscape and pursue growth opportunities in the coming quarters.

Sammaan Capital Limited (formerly known as Indiabulls Housing Finance Limited) has announced its financial results, showcasing a solid performance with growth in both revenue and profit, alongside an increase in asset quality ratios.

Revenue Growth

The company reported a total revenue of 24.00 billion rupees, marking a 9% increase from 22.00 billion rupees in the same period last year. This growth demonstrates Sammaan Capital's resilience and ability to expand its business in the current economic environment.

Profit Performance

Sammaan Capital's consolidated net profit reached 3.34 billion rupees, compared to 3.26 billion rupees in the previous year, indicating a modest year-on-year increase of 2.5%.

Asset Quality

The company reported a rise in its asset quality ratios:

• Gross non-performing assets (GNPA) increased to 2.07% from 1.8% in the previous quarter.
• Net non-performing assets (NNPA) rose to 1.2% from 1.1% quarter-on-quarter.

Financial Highlights

All figures in billion rupees

Operational Performance

The company's performance was driven by several factors:

1. Interest Income: Sammaan Capital reported an interest income of 15.64 billion rupees.

2. Fees and Commission Income: The company saw an increase in fees and commission income, reaching 622.40 million rupees, up from 287.50 million rupees in the same period last year.

3. Net Gain on Fair Value Changes: This component contributed 420.50 million rupees to the company's revenue.

4. Net Gain on Derecognition of Financial Instruments: The company recorded a substantial gain of 7.32 billion rupees under this category, significantly boosting its overall revenue.

Expense Management

Sammaan Capital's total expenses stood at 19.41 billion rupees. The major components of expenses included:

• Finance costs: 11.96 billion rupees
• Impairment on financial instruments: 4.66 billion rupees
• Employee benefits expenses: 1.84 billion rupees

Balance Sheet Strength

Sammaan Capital maintained a strong balance sheet with:

• Total assets of 6,440.92 billion rupees
• Loans portfolio of 3,640.17 billion rupees
• Investments totaling 1,829.64 billion rupees

Management Commentary

Gagan Banga, Vice-Chairman, Managing Director & CEO of Sammaan Capital, stated, "Our results demonstrate the company's ability to grow revenue and maintain profitability in a dynamic market environment. We remain committed to our strategic objectives and continue to focus on sustainable growth while maintaining robust risk management practices."