IndoStar reported a weak set of financial numbers for the third quarter, reflecting pressure on profitability and operating performance on a year-on-year basis.
IndoStar Capital Finance posted a sharp decline in net profit for Q3, with profit after tax falling 70% to ₹8.3 crore compared with ₹27.7 crore in the same quarter last year. The steep drop highlights the impact of lower operating income and reduced margins during the quarter.
Revenue from operations also witnessed a contraction, declining 7.2% year-on-year to ₹346.4 crore, as against ₹373.2 crore in Q3 of the previous financial year. The fall in revenue suggests muted business activity and a challenging operating environment during the period under review.
Operating performance weakened further at the EBITDA level. IndoStar’s EBITDA slipped 27.6% to ₹152.9 crore in Q3, compared with ₹211.3 crore reported in the corresponding quarter last year. The decline in EBITDA was accompanied by margin compression, with EBITDA margin coming in at 44.15% versus 56.63% a year ago, indicating higher cost pressures and lower operating leverage.