Dewan Housing eyes 25% growth in business

Says low-and-middle income category would continue its buoyancy in the current fiscal

Housing financier Dewan Housing Finance (DHFL) said the housing loan demand from the low-and-middle income category would continue its buoyancy in the current fiscal.

According to DHFL, the segment remained unaffected by the general economic slowdown in the last two years unlike the correction seen in the high-end segment.

“Our business growth in Q1 of the current fiscal was 18-20 per cent, and we expect the full-year growth to be higher at 20-25 per cent,” said Rakesh Makkar, president of DHFL.

With a stable government at the Centre, we see positive business conditions and a strong sentiment among realty developers to kickstart housing projects across all categories, said Makkar.

In line with these, the company was targeting to disburse Rs 20,000 crore loans this year as against Rs 16,500 crore it had lent last year. For 2013-14, DHFL reported profit after tax (PAT) of Rs 530 crore against Rs 450 crore registered for the corresponding period last year, and its non-performing assets stood at 0.78 per cent.

Currently, 40 per cent of DHFL's revenue comes from the western states and the rest from southern and northern states. Its pan-India average loan ticket size has been around Rs 12 lakh.

Briefing reporters here on Thursday, Makkar said the company would be expanding its operations in Telangana and Andhra Pradesh.

It would open 12 branches in both the states this year. As of now, it is present in 28 locations in these two states. It also plans to expand its project finance.

It is targeting a 50 per cent jump in business this year in both the states at Rs 954 crore, when compared with Rs 636 crore in the last year.

DHFL sees no requirement for external funding at this juncture as it was comfortable with internal accruals and healthy profit levels.

Shares of DHFL closed 1.15 per cent higher at Rs 322.25 on Thursday as against the previous day’s closing of Rs 318.60 on the BSE.