Dewan Housing Finance Corp Q3 net profit up 25% to Rs 3.06 billion

The assets under management grew 29.4% to Rs 1,012 billion in Q3 FY18 from Rs 782.96 billion a year ago

Dewan Housing Finance Corporation (DHFL) reported a 25 per cent increase in its net profit for the third quarter ended December 2017 (Q3) at Rs 3.06 billion compared with Rs 2.47 billion in the corresponding three months a year ago. Sequentially, the figure rose by only four per cent.

The company’s total income from operations was up 11.5 per cent to Rs 26.34 billion in the reporting quarter from Rs 23.62 billion in the year-ago period. On a sequential basis, total income increased 1.1 per cent from Rs 26.14 billion in Q2.

The assets under management (AUM) grew 29.4 per cent to Rs 1,012 billion in Q3 FY18 from Rs 782.96 billion a year ago.

Kapil Wadhawan, chairman and managing director of DHFL, said, “The quarter has been truly significant and a milestone one for DHFL in taking AUM over the Rs 1-lakh-crore (Rs 1-trillion) mark.”

Total finance and interest costs increased to Rs 1.89 billion in Q3 FY18 from Rs 1.8 billion in Q3 FY17.

Loans sanctioned during Q3 FY18 came at Rs 165.5 billion. Disbursements increased 54 per cent to 108.5 billion for the quarter under review from Rs 70.6 billion a year ago. The average loan ticket size for DHFL stands at Rs 1.45 million. 

On the massive growth in disbursements, Wadhawan said this was due to the “momentum gained by the team to harness growth potential in the affordable home segment through close engagement with customers and developers alike”.

The total outstanding loan book grew 21.8 per cent to Rs 839.6 billion in Q3 FY18 from Rs 689.6 billion in the corresponding year-ago quarter.

 

The housing finance company securitised a pool of housing and property loans worth Rs 56.63 billion in Q3 FY18. Gross non-performing assets (GNPA) stood at 0.96 per cent during the said period, down from 0.97 per cent in the previous quarter. Its earnings per share (EPS) rose to Rs 9.76 per share in December 2017 from Rs 9.36 in Q2.

The DHFL stock on Monday closed at 629.95 on the BSE, up 2.90 per cent.

According to the company, 2018-19 would witness an improved environment for the affordable housing sector. Besides the government’s initiatives, DHFL conducted 23 Girha Utsav exhibitions in tier-II and tier-III cities to provide the low-middle income segment easy access to affordable finance and housing options. 

DHFL plans to leverage “technology to strengthen the operating efficiencies, enrich customer experience and expand outreach specifically to the target low-middle income group in tier-II and tier-III towns”, Wadhawan signed off.