Tata Capital Q2 Profit Flat at Rs 1,119 Cr

New Delhi, Oct 28 (PTI) Tata Capital, NBFC arm of Tata Group, on Tuesday reported a flat growth in consolidated profit at Rs 1,119 crore for the September quarter.

The NBFC firm had earned a consolidated net profit of Rs 1,133 crore in the second quarter of the previous fiscal year.

This is the first quarterly number announcement after listing of the Tata Capital stocks on the bourses. Its share were listed on stock exchanges on October 13.

Total income rose to Rs 7,750 crore during the quarter under review, from Rs 7,192 crore in the same period a year ago, Tata Capital said in a regulatory filing.

As regards interest income during the quarter, the financial services firm earned Rs 6,980 crore as against Rs 6,253 crore in the same period a year ago.

Net interest income improved by 23 per cent to Rs 2,637 crore as compared to Rs 2,139 crore in the same quarter a year ago.

Total expenses also moved up to Rs 6,246 crore, as compared to Rs 5,700 crore in the same period a year ago.

Assets under management (net) rose 22 per cent to Rs 2,15,574 crore as against Rs 1,76,637 crore in the year-ago period.


The net worth increased to Rs 35,408 crore as against Rs 29,490 crore a year ago.

On a standalone basis, Tata Capital's profit rose to Rs 661 crore as compared to Rs 707 crore in the second quarter of the previous financial year, registering a growth of 6.5 per cent.

At the same time, the total income on a standalone basis rose to Rs 5,592 crore as against Rs 5,434 crore in the same period a year ago.

Tata Capital raised Rs 15,512 crore from its initial public offering (IPO) at a price band of Rs 310 to Rs 326 per share, making it the largest issue of the year.

At the top end of the band, the non-banking financial company commands a valuation of about Rs 1.38 lakh crore.

The IPO, comprised a total of 47.58 crore shares, includes a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares. Tata Sons offloaded 23 crore shares, while the International Finance Corporation (IFC) divested 3.58 crore shares.

Prior to IPO, Tata Sons held an 88.6 per cent stake in Tata Capital, while IFC owned 1.8 per cent holding.

Proceeds from the IPO will be used to strengthen the company's Tier-1 capital base, supporting future capital requirements, including onward lending.