Housing Finance company PNB Housing Finance announced Q1FY25 results:
Financial Highlights:
- Net profit increased by 25% YoY and declined by 1.5% QoQ to Rs 433 crore
- Net Interest Income grew by 4% YoY and 3% QoQ to Rs 651 crore
- Operating expenditure increased by 27% YoY and 8% QoQ to Rs 190 crore
- Yield at 10.03% in Q1FY25 as compared to 10.08% in Q4FY24 and 10.59% in Q1FY24
- Cost of Borrowing is at 7.92% in Q1FY25 as compared to 7.98% in Q4FY24 and 7.97% in Q1FY24
- Spread on loans is at 2.11% in Q1FY25 as compared to 2.10% in Q4FY24 and 2.62% in Q1FY24
- Net Interest Margin stood at 3.65% in Q1FY25 as compared to 3.65% in Q4FY24 and 3.86% in Q1FY24. Gross Margin, net of acquisition cost, stood at 4.03% in Q1FY25
- With recovery from total written off pool, Credit Cost stood at -7 bps in Q1FY25 as compared to 4 bps in Q4FY24 and 36 bps in Q1FY25
Business Highlights:
- Disbursement grew by 19% YoY to Rs 4,398 crore; retail disbursement constitutes 99%
- Emerging markets and affordable segment contribute 33% of the retail disbursement in Q1FY25
- Retail Loan Asset grew by 14.4% YoY to Rs 65,157 crore as on 30th Jun 2024, which is 97.3% of
- Loan Asset
- Affordable book crossed Rs 2,000 crore mark; as on 30th Jun 2024 is at Rs 2,361 crore
- Loan Asset stood at Rs 66,986 crore as on 30th Jun 2024 registering 11% growth YoY
- Strengthened Pan India presence to 303 branches & outreaches
- Dedicated 160 branches for Affordable segment and 50 branches for Emerging Segment
- Gross NPA declined by 241 bps to 1.35% as on 30th Jun 2024 as compared to 3.76% as on 30th June 2023. Net NPA declined to less than 1% at 0.92% as on 30th Jun 2024
- Resolved 1 NPA and 1 written off corporate account during the quarter
- Recovered ~Rs 80 crore from total written-off pool in Q1FY25
- Profit after Tax is at Rs 433 crore vs Rs 347 crore registering an increase of 25% YoY
- Return on Asset is at 2.38% in Q1FY25 (annualized); FY24 ROA stood at 2.20%
- Capital Risk Adequacy Ratio stood at 29.50% as on 30th Jun 2024; Tier I at 28.43%
- CRISIL upgraded the rating to “AA ” from “AA”; Outlook “Stable”
Commenting on the performance Girish Kousgi, Managing Director & CEO said: The Company’s focus on growth, asset quality and profitability are yielding results as evidenced by the increased contribution from high-yielding segments, such as the affordable segment and emerging markets, which accounted for over 30% of retail disbursement during the quarter. Our consistent efforts have enabled us to resolve the NPA accounts, thereby reducing our total GNPA to 1.35% as on June 30, 2024.
The Government's commitment to inclusive growth is demonstrated by the expansion of the PMAY scheme, which includes the provision of 3 crore additional houses in urban and rural areas. This is a substantial stride toward the realization of the government's vision of "Housing for all." The Company is well-positioned to capitalize on this opportunity with our Pan India presence through 303 branches, including dedicated160 branches for the affordable segment.”