Indiabulls Housing Finance's (IHFL) core operating performance was robust,with strong AUM growth (+32% YoY) and stable reported spreads. We note of a one-time gain of INR7.68b due to the sale of 10% stake in Oak NorthBank to GIC, Singapore. AUM growth was in line with trend at 32% YoY to reach INR1.1t. This was driven by 43% YoY growth in disbursements to INR130b. Management is bullish on supply pick-up in the affordable housing space. Despite competitive pressures, IHFL managed to hold reported spreads steady at 3.22% (vs. 3.25% in 2QFY18). Management continues to guide for book spreads of 3-3.25%. Incremental cost of funds is around 7.5%