The Dewan Housing Finance Corporation (DHFL) today reported an around 64 per cent rise in profit after tax (PAT) at Rs 51.24 crore for Q1 FY11, on higher disbursements and revenue from selling third-party products.
DHFL had recorded Rs 31.26 crore PAT in the same quarter of the previous fiscal.
"The rise in PAT is mainly because of a 65 per cent rise in disbursement, better net interest margin (NIM) and higher revenue from third-party products sales," DHFL's General Manager (Finance) Prashant Chaturvedi told PTI.
DHFL disbursed loans worth Rs 1,274.05 crore during the first quarter of the current fiscal, compared to Rs 773.94 crore in the corresponding quarter of the previous one, he said, adding that the company was targeting Rs 6,000 crore disbursement for the entire fiscal.
Stating that the net interest margin (NIM) of the company stood at 2.96 per cent during the quarter under review, he said that DHFL's conscious decision to not lower the margin also paid off well. The NIM, during the same quarter of the previous fiscal, was at 2.99 per cent.
Chaturvedi said that DHFL was able to maintain the NIM as its average cost of funds was lower at 8.28 per cent during the first quarter of the current fiscal.
"It was much higher during the corresponding quarter last fiscal," he said.
Chaturvedi said that the company's income by selling third-party products also increased to Rs 11.06 crore during the quarter, from Rs 3.24 crore in the same quarter of the previous fiscal.
DHFL sells insurance products of ICICI Prudential Life.
The total income of the housing finance company stood at Rs 298.9 crore vis-a-vis Rs 213.87 crore in the corresponding quarter of the previous fiscal.
