16 October 2018 Indiabulls Housing Finance's (IHFL) PAT grew 21% YoY (-1% QoQ) to INR10.4b (3% miss) in a quarter characterized by robust loan growth, some margin pressure and stable asset quality. AUM increased 29% YoY to INR1.29t, driven by disbursement growth of 23% YoY to INR110b. guided to 20% YoY AUM growth for FY19, our AUM growth estimate for FY19 is 16% YoY given the fact that AUM has grown only 5% over Mar-Sep 2018. Total income growth came in at 10% YoY the slowest in the past several quarters due to the 34% YoY increase in interest expense. Asset quality was largely stable, with stage 3 loans at 77bp and coverage ratio on the same at 25%. The focus on core mortgage loans and market share gains should drive AUM CAGR of 17% over the next three years. Asset quality trend is likely to remain stable.