Indiabulls Q4 profit soars

Indiabulls Financial Services has posted a 150 per cent increase in net profit for the fourth quarter of fiscal 2011, from Rs 94 crore to Rs 236 crore. Revenues rose 80 per cent to Rs 772.38 crore (Rs 428.56 crore). The company has proposed a final dividend of Rs 5 a share of face value Rs 2. Assets under management at the end of the fourth quarter stood at Rs 19,796 crore and net interest income at Rs 369 crore. It plans to add 500 employees in the current financial year and has already given a salary hike of 15 per cent to its employees effective January. Spread on incremental lending during the quarter stood at 4.1 per cent, down 40 basis points from the previous quarter. This was due to an increase in borrowing costs. Net NPA, inclusive of floating provisions, was 0.38 per cent (0.9 per cent) while cost to income ratio was 21.04 per cent (26.58 per cent). Capital adequacy ratio as on March 31 was 20.09 per cent.