Aavas Financiers April-June Net Profit Slips Sequentially, Revenue Up on Year

Aavas Financiers Ltd. posted a marginal sequential decline in net profit for April-June despite robust year-on-year revenue growth. Net profit stood at ₹1.39 billion, down over 9% on quarter but up 10% on year. Revenue from operations came in at ₹6.28 billion, slipping 1% on quarter but rising 16% from a year earlier.

Total expenditure rose 18% on year to ₹4.49 billion, driven by a 15% jump in finance costs to ₹2.71 billion.Assets under management rose 16% on year to ₹207.4 billion, while disbursements fell 5% to ₹11.45 billion due to a one-time change in recognising disbursements.

Net interest margin increased 7 basis points on year to 7.48%, while the cost of borrowing fell 22 bps sequentially to 8.02%.