Tata Capital Profit Soars 51% Past Rs 3 Lakh Crore Loan Mark

Tata Capital reported a substantial 51% year-on-year increase in consolidated net profit for the September quarter, amounting to Rs 1,660 crore. This financial success was primarily driven by strong loan expansion and increased interest income.

The company's gross loan book achieved a significant milestone, exceeding Rs 3 lakh crore, marking a 27% rise from the previous year. Assets under management also saw a healthy increase of 26%.

Profitability was further bolstered by a 17% year-on-year decrease in loan losses and provisions, which fell to Rs 645 crore. This reduction, coupled with a 33% rise in pre-provisioning operating profit, contributed to a 58% jump in profit before tax.

Operational efficiency improved, with the cost-to-income ratio declining to 35.3% from 39.7% in the prior year's comparable quarter. Annualised credit costs also saw a reduction.

Asset quality remained stable, with a gross stage 3 ratio of 1.9% and a net stage 3 ratio of 0.8%. The company's capital adequacy ratio stood at 17.3% as of September 30.