Dewan Housing Finance Q4 net up 15% at Rs 162 cr

Total income rose 11% to Rs 1,582 cr

Dewan Housing Finance Corporation Limited (DHFL)’s net profit for the quarter ended March 2015 rose 14.95 per cent to Rs 162.28 crore on robust growth in loan book and gains from falling cost of funds. It had posted a net profit of Rs 141.17 crore in January-March 2014. DHFL stock closed 1.6 per cent higher at Rs 463 on the BSE on Thursday. Total income was up 11.67 per cent to Rs 1,582.48 crore in Q4 as against Rs 1,417.13 crore in Q4 of FY14.

The net profit for FY15 was up by 17.45 per cent to Rs 621.29 crore from Rs 529.00 crore in FY14.

Loan book outstanding grew 26.18 per cent to Rs 51,039.65 crore at end of March 2015 from Rs 40,451.04 crore in FY14.

Kapil Wadhawan, chairman & managing director, DHFL said the housing finance company intends to grow loan book in FY16 by over 20 per cent.

There is a strong focus towards affordable housing along with government's efforts to incentivize the segment. In this backdrop, the flow of investments in the affordable housing space is expected to be strong, ensuring growth and stability. The focus on tier two and three towns will remain at the core of our strategy, DHFL said.

Its net interest margin (NIM) was at 2.89 per cent, up from 2.71 per cent last year. DHFL has reworked its liability profile. The share of bank sourced funds declined to 58 per cent in FY15 from 68 per cent in FY14.

It stepped up borrowings from money market to taking benefit from falling interest rates on commercial papers and debentures. This helped in improvement oif NIM, Wadhawan said.

It raised equity capital worth Rs 809 crore from 53 institutional investors in FY15. This should suffice to support business growth for two years, he added.