Mumbai-based non-banking finance company Capital First Ltd (earlier Future Capital Holdings Ltd) saw its bottom line punctured by higher provisions and increasing cost of credit even as the firm saw its income from operations rise during the first quarter ended June 30, 2013.
The NBFC reported 78.7 per cent year-on-year decline in its consolidated net profit to Rs 5.5 crore in the first quarter. This was due to the sharp rise in expenses, led by Rs 13.35 crore in provision and write-offs, and around 30 per cent rise in finance cost in the quarter ended June 30, 2012.
This tempered the healthy growth in total income to Rs 242 crore, up 17 per cent over the year-ago period.
During the quarter, a subsidiary of the company, Capital First Home Finance Pvt Ltd, received the certificate of registration from the National Housing Bank to operate as non-deposit accepting housing finance company.
Private equity major Warburg Pincus acquired a majority stake in the public-listed financial services arm of the Future Group last year, in a rare control transaction in the listed space in India. It has recently raised its holding to 71.3 per cent and has seen the value of its investment decline by 30 per cent since then.
The company has also seen its share price halve since last November.
(Edited by Sanghamitra Mandal)
