Can Fin Homes zooms 9% on healthy June quarter result, dividend bounty

Can Fin Homes shares zoomed up to 8.6 per cent to Rs 419.5 on the BSE on Wednesday after the housing finance company posted decent June quarter results on Tuesday, post market hours. The company also recommended dividend of Rs 2 per share. At 10:09 am, the stock was trading at Rs 402.6 per share, up 4.3 per cent, on the BSE, as against 0.09 per cent decline in the S&P BSE Sensex. 

Can Fin Homes' net profit grew 15 per cent to Rs 93.15 crore for the quarter under review, as against Rs 80.98 crore in the corresponding quarter previous fiscal. Meanwhile, it's pre-tax profit was Rs 126.04 crore, mildly higher from Rs 122.89 crore reported in the corresponding quarter of the previous financial year. Sequentially, the PBT improved from Rs 118.92 crore.

The Canara Bank-promoted company's net income came in at Rs 522.50 crore in Q1FY21, up 8 per cent from Rs 484.14 crore in the similar quarter last year. 

"In accordance with the RBI guidelines relating to Covid-19 Regulatory Package... the company has offered moratorium on the payment of instalments falling due between March 1, 2020 to August 31, 2020 to eligible borrowers. The moratorium period, has been excluded from the number of days past-due for the purpose of asset classification under Regulatory Income Recognition and Asset Classification norms (IRAC) as of June 30, 2020. As on June 30,2020, company holds a provision of Rs 7,289.45 lakhs," it said in a statement. 

The company has maintained 100 per cent asset cover on its secured redeemable non-convertible debentures as on June 30, 2020. In accordance with the RBI guidelines relating to Covid-19 Regulatory Package, the company has offered moratorium on the payment of instalments falling due between March 1, 2020 to August 31, 2020 to eligible borrowers, it added.

Can Fin Homes is a housing finance company. The firm offers housing loan to individuals; housing loan to builders/developers, and loan against property.

So far in the financial year 2020-21, the stock price has surged 34 per cent on the BSE, as against 32 per cent rise in the benchmark S&P BSE Sensex till Tuesday.