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26 Jul 2024 08:16
PNB Housing Finance
AUM growth and asset quality improving
PNB Housing Finance has posted strong 25% growth in the net profit to Rs 432.81 crore for the quarter ended June 2024 (Q1FY2025) over Q1FY2024. The loan book of the company improved 11%, while overall AUM moved up 8% end June 2024 over June 2023. The company has posted strong 19% growth in the disbursement in Q1FY2025. Meanwhile, the margins of the company were stable, while asset quality improved in Q1FY2025.

The net interest margin was steady at 3.65% in the quarter ended June 2024, compared with 3.65% in the preceding quarter and eased 3.86% in the corresponding quarter last year. Net interest income for the quarter ended June 2024 increased 4% to Rs 642.14 crore as against Rs 619.44 crore in the same period of the previous year.

Income from operations rose 4% to Rs 1739.07 crore in the quarter ended June 2024. Interest expense moved up 5% to Rs 1096.93 crore, while other expenses (including staff cost of Rs 109.23 crore and other expenses of Rs 70.35 crore) increased 28% to Rs 179.58 crore. Ensuing Gross profit moved up 7% to Rs 555.57 crore.

The depreciation rose to Rs 13.35 crore in Q1FY2025 against Rs 12.63 crore in Q1FY2024. The company has reversed provisions of Rs 11.96 crore as against provision charge of Rs 60.56 crore in same quarter last year. PBT increased 24% to Rs 554.18 crore.

Effective tax rate eased to 21.90% bps on yoy basis from 22.24%. The profit after tax of the company improved 25% to Rs 432.81 crore in the quarter ended June 2024.

Loan book and disbursements

The AUM of the company increased 8% to Rs 72540 crore end June 2024 over June 2023. The loan portfolio of the company moved up 11% to Rs 66986 crore, The loans sold outstanding declined 20% to Rs 5554 crore end June 2024 over June 2023.

The disbursements increased 19% to Rs 4398 crore in the quarter ended June 2024. Retail disbursement constitutes 99% of total disbursements. Emerging markets and affordable segment contribute 33% of the retail disbursement in Q1FY25.

Retail Loan Asset grew by 14.4% yoy to Rs 65157 crore end June 2024, which is 97.3% of loan asset. Affordable book crossed Rs 2,000 crore mark to touch Rs 2,361 crore end June 2024.

The company has strengthened pan India presence to 303 branches & outreaches. It has dedicated 160 branches for Affordable segment and 50 branches for Emerging Segment.

Return on Asset is at 2.38% in Q1FY25 (annualized). FY24 ROA stood at 2.20%

Capital Risk Adequacy Ratio stood at 29.50% as on 30th Jun 2024; Tier I at 28.43% CRISIL upgraded the rating to “AA+” from “AA”, while Outlook is “Stable”.

The deposits with the company have increased 7% to Rs 18103 crore at end June 2024.

Asset quality

Gross NPA ratio declined to 1.35% at end June 2024 from 1.50% a quarter ago and 3.76% a year ago. Meanwhile, Net NPA ratio also declined to 0.92% at end June 2024 from 0.95% a quarter ago. The company resolved 1 NPA and 1 written off corporate account during the quarter. The recoveries were at Rs 80 crore from total written-off pool in Q1FY25.

In absolute terms, GNPA stood at Rs 906 crore and NNPA at Rs 612.00 crore at end June 2024.

Book value of the company stood at Rs 593.2 per share, while adjusted book value was at Rs 569.6 per share at end June 2024.

Financial Performance FY2024

For the year ended March 2024 (FY2024), PNB Housing Finance reported 9% rise in Income from operations at Rs 6742.21 crore. Interest expense moved up 9% to Rs 4261.12 crore, while other expenses increased 17% to Rs 619.76 crore. Ensuing Gross profit increased 3% to Rs 2176.21 crore. Depreciation increased 0% to Rs 51.19 crore, while provision and write offs dipped 75% to Rs 171.12 crore. PBT improved 44% to Rs 1953.90 crore. Effective tax rate stood at 22.82% FY2024, compared with 23.14% in FY2023. The PAT of the company improved 44% to Rs 1508.01 crore in FY2024.

PNB Housing Finance: Consolidated Results

Particulars

2406 (3)

2306 (3)

Var %

2403 (12)

2303 (12)

Var %

Income from operations

1739.07

1666.94

4

6742.21

6199.07

9

Other Income

93.01

40.78

128

314.88

330.59

-5

Total Income

1832.08

1707.72

7

7057.09

6529.66

8

Interest Expenses

1096.93

1047.50

5

4261.12

3898.52

9

Other expenses

179.58

140.35

28

619.76

527.51

17

Gross profit

555.57

519.87

7

2176.21

2103.63

3

Depreciation

13.35

12.63

6

51.19

51.44

0

Profit before tax and Provisions

542.22

507.24

7

2125.02

2052.19

4

Provisions and write off

-11.96

60.56

LP

171.12

691.28

-75

Profit before tax 

554.18

446.68

24

1953.90

1360.91

44

Provision for tax

121.37

99.36

22

445.89

314.91

42

PAT

432.81

347.32

25

1508.01

1046.00

44

EPS*(Rs)

66.7

53.5

 

58.1

40.3

 

Adj BV (Rs)

569.6

474.4

 

552.8

556.5

 

* Annualized on current equity of Rs 259.73 crore. Face Value: Rs 10, Figures in Rs Crore, LP: Loss to Profit, PL; Profit to Loss

Source: Capitaline Corporate Database

 



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