Sammaan Capital, formerly known as Indiabulls Housing Finance, reported its Q3 FY25 earnings with mixed results, reflecting slight declines in profitability and net interest income (NII) but significant improvements in asset quality.
The company posted a net profit of Rs 302 crore for the quarter ended December 31, 2024, marginally down by 0.3% from Rs 303 crore in Q3 FY24. This decline is largely attributed to a reduction in net interest income, which dropped 1% year-on-year to Rs 823 crore compared to Rs 831 crore in the same period last year. The dip in NII comes amid slight changes in the lending portfolio, with cautious lending seen in the legacy assets segment.
Sammaan Capital’s total revenue from operations for Q3 FY25 stood at Rs 2,016.52 crore, lower than the Rs 2,142.65 crore reported in Q3 FY24, reflecting a decline in certain interest components and fair value adjustments. The company’s assets under management (AUM) also decreased, standing at Rs 61,947 crore as of Q3 FY25 compared to Rs 64,703 crore in the previous year. The contraction was primarily due to a reduction in legacy AUM, which fell from Rs 41,302 crore to Rs 26,995 crore, while growth AUM expanded from Rs 23,401 crore to Rs 34,952 crore, showing a strategic shift toward a more sustainable lending portfolio.
The company’s net worth rose significantly to Rs 20,331 crore in Q3 FY25 from Rs 18,278 crore in Q3 FY24, reflecting strong equity retention and lower gearing. The gearing ratio improved to 2.2x compared to 2.6x in the previous year, showcasing a more stable financial structure.
On the asset quality front, Sammaan Capital reported a remarkable improvement, with gross non-performing assets (GNPA) reducing to 1.14% in Q3 FY25 compared to 3.04% in the previous quarter (Q2 FY25). Similarly, net non-performing assets (NNPA) fell to 0.66% from 1.81% sequentially. This significant improvement in asset quality highlights the company’s success in restructuring its portfolio and managing risks effectively.
Overall, while the marginal decline in profitability and NII signals some challenges in core lending operations, the improvement in asset quality and a stronger balance sheet position Sammaan Capital favorably for long-term growth. The company’s strategic focus on reducing legacy exposures while enhancing growth AUM is expected to drive sustainable results in the coming quarters.
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