GIC Housing Finance tanks 13% on weak Q1 results

Its net profit plunged 70 per cent YoY on the back of increased expenses, the financials of the company showed

Shares of GIC Housing Finance tanked 13 per cent intra-day to Rs 209 apiece, also its 52-week low, on the BSE on Wednesday after the company reported a 70 per cent year on year (YoY) decline in net profit at Rs 15 crore in April-June quarter (Q1FY20), due to lower income. The housing finance company had logged a profit of Rs 49 crore in the year ago quarter, the financials of the company showed.

Net interest income during the quarter under review declined 27 per cent at Rs 68 crore, as against an NII of Rs 93 crore in the corresponding quarter of previous year.

The company's expenses, too,increased from Rs 224.18 crore, clocked in Q1FY19, to Rs 292.59 crore in the quarter under review. 

The net addition to non-performing asset (NPA) for the quarter ended was less than Rs 2.11 crore and the interest income for the quarter ended reduced by less than Rs 0. 72 crore due to change in method of appropriation of recovery, the company said in a statement.

At 12:15 pm, the stock was trading 11.39 per cent lower at Rs 212.75 apiece as against a 0.77 per cent rise in the S&P BSE Sensex.