Private sector housing finance company Dewan Housing Finance (DHFL) on Monday reported a 31.7% rise in its net profit for the quarter ended December, aided by an improvement in revenue and interest margin along with rise in its loan portfolio.
The company’s net profit rose to R 244.77 crore from R185.9 crore in the same quarter last year. Total income, including other income, grew 25.5% to R2,366.53 crore.
DHFL also witnessed a healthy 20 basis points year-on-year increase in its net interest margin, which came in at 3.07% for the quarter under review.
The cost-to-income ratio fell to 23.77% from 26.36% at the end of the corresponding quarter a year ago.
The company’s assets under management increased by 18.7% to R78,295.81 crore. Loan sanctions and disbursements during the quarter came in at R9,459.41 crore and R7,059.43 crore, marking an increase of 1.6% and 9.8%, respectively.
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“We witnessed a quarter that can be termed very eventful starting with a major step in the form of demonetisation and followed by a steep rate reduction flagged by the Indian banking system. In this backdrop, our registering a steady growth in our AUM this quarter and retaining a strong asset quality are reflective of the strength of our growth strategy, our business model and our commitment to DHFL’s vision, while also deepening our ability to expand our customer base,” said Kapil Wadhawan, chairman and managing director.
The company’s gross non-performing assets as a percentage of total loans stood at 0.95%, while return on assets and return on equity came in at 1.6% and 18.3%, respectively.
Board approves raising of R6,000 cr through NCDs.
The board has cleared issuance of non-convertible secured or unsecured debentures (NCDs) up to an amount of R5,000 crore and non-convertible subordinated unsecured debentures
up to an amount of R1,000 crore on a private placement basis. It has also given nod for issue of non-convertible redeemable cumulative preference shares up to an amount not exceeding R750 crore, in one or more tranches, on a private placement basis.
Shares soar 6.45% post Q3 earnings
Shares of DHFL surged 6.5% after the company reported a 31.6% rise in net profit for the third quarter ended December 2016.
The stock gained 6.45% to end at R288.05 on the BSE. During the day, it jumped 6.96% to R289.45. On the NSE, shares went up by 6.41% to close at Rs 288.
The company’s market valuation moved up by R546.59 crore to R9,019.59 crore. (With PTI inputs)