 "Aavas Financiers hits new high on robust Q4 results; stock up 23% in 6 days")
Shares of Aavas Financiers hit a new high of Rs 1,363, up 5 per cent in intra-day trade on Monday on the BSE, after the company reported a robust more-than-doubled net profit at Rs 54.3 crore in March quarter, on the back of a healthy net interest income. The company had a profit of Rs 20 crore in year-ago period.
Net interest income (interest income minus interest expenses) was up 43.8 per cent year-on-year (Y-o-Y) at Rs 124 crore against Rs 86 crore in the corresponding quarter of previous fiscal. Net interest margin expanded 129 bps to 8.56 per cent from 7.27 per cent while Assets under management (AUM) rose 45.6 per cent at Rs 5,942 crore on Y-o-Y basis.
The company's assets quality improved during the quarter with gross non-performing assets (NPAs) at 0.47 per cent, improved by 11 bps, and net NPAs at 0.37 per cent, an improvement of 12 bps of the outstanding loan book, over the preceding quarter.
The affordable housing finance company said asset quality continued to remain strong, driven by in-house sourcing model, strong underwriting process & robust collection mechanism.
“Given the challenging circumstances faced by the NBFC industry during FY18-19, we have been performing consistently with timely investments and a commitment to deliver sustainable long term performance. The Company would continue to strive for strong asset quality, sustainable profitability & consistent growth while enhancing consumer satisfaction & creating shareholders' wealth,” said Sushil Kumar Agarwal, CEO, Aavas Financiers.
In the past six trading days, the stock has rallied 23 per cent, as compared to 1 per cent decline in the benchmark S&P BSE Sensex. It has zoomed 123 per cent from its 52-week low level of Rs 612 on October 31, 2018 on the BSE in intra-day trade.
The stock had made a weak debut, as the scrip got listed at Rs 750, 9 per cent below its issue price of Rs 821 on the BSE on October 8, 2018.
Net interest income (interest income minus interest expenses) was up 43.8 per cent year-on-year (Y-o-Y) at Rs 124 crore against Rs 86 crore in the corresponding quarter of previous fiscal. Net interest margin expanded 129 bps to 8.56 per cent from 7.27 per cent while Assets under management (AUM) rose 45.6 per cent at Rs 5,942 crore on Y-o-Y basis.
The company's assets quality improved during the quarter with gross non-performing assets (NPAs) at 0.47 per cent, improved by 11 bps, and net NPAs at 0.37 per cent, an improvement of 12 bps of the outstanding loan book, over the preceding quarter.
The affordable housing finance company said asset quality continued to remain strong, driven by in-house sourcing model, strong underwriting process & robust collection mechanism.
“Given the challenging circumstances faced by the NBFC industry during FY18-19, we have been performing consistently with timely investments and a commitment to deliver sustainable long term performance. The Company would continue to strive for strong asset quality, sustainable profitability & consistent growth while enhancing consumer satisfaction & creating shareholders' wealth,” said Sushil Kumar Agarwal, CEO, Aavas Financiers.
In the past six trading days, the stock has rallied 23 per cent, as compared to 1 per cent decline in the benchmark S&P BSE Sensex. It has zoomed 123 per cent from its 52-week low level of Rs 612 on October 31, 2018 on the BSE in intra-day trade.
The stock had made a weak debut, as the scrip got listed at Rs 750, 9 per cent below its issue price of Rs 821 on the BSE on October 8, 2018.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%