Capitaline

Results 25-Jan-24

Analysis

PNB Housing Finance

Retail loan growth improves to 13%

PNB Housing Finance has continued to post strong 26% growth in the net profit to Rs 338.44 crore for the quarter ended December 2023 (Q3FY2024) over Q3FY2023. The loan book of the company rose at improved pace of 7%, while overall AUM increased 4% end December 2023 over December 2022.

The company has posted strong 21% growth in the disbursement in Q3FY2024. Meanwhile, the asset quality improved in Q3FY2024.

The net interest margin was at 3.49% in the quarter ended December 2023, compared with 3.95% in the preceding quarter and 4.68% in the corresponding quarter last year. Net interest income for the quarter ended December 2023 declined 17% to Rs 592.89 crore as against Rs 717.3 crore in the same period of the previous year.

Income from operations declined 2% to Rs 1679.51 crore in the quarter ended December 2023. Interest expense moved up 9% to Rs 1086.62 crore, while other expenses (including staff cost of Rs 80.58 crore and other expenses of Rs 76.35 crore) declined 5% to Rs 156.93 crore. Ensuing Gross profit fell 19% to Rs 512.45 crore.

The depreciation rose to Rs 13.05 crore in Q3FY2024 against Rs 12.60 crore in Q3FY2023. The provision and write offs plunged to Rs 59.10 crore against Rs 254.84 crore in same quarter last year. PBT increased 20% to Rs 440.30 crore.

Effective tax rate eased to 23.13% bps on yoy basis from 26.64%. The profit after tax of the company improved 26% to Rs 338.44 crore in the quarter ended December 2023.

Loan book and disbursements

The disbursements increased 21% to Rs 4143 crore in the quarter ended December 2023.

Affordable segment surpassed a disbursement and loan book of Rs 1,000 crore in less than one year, contributing 8% to the retail disbursement in 9MFY24

The AUM of the company increased 4% to Rs 68549 crore end December 2023 over December 2022. The loan portfolio of the company increased 7% to Rs 62337 crore. The loans sold outstanding declined 20% to Rs 6212 crore end December 2023 over December 2022.

Retail Loan Asset grew by 13% YoY to Rs 60,129 crore end December 2023, which is 96.5% of Loan Asset.

Expanded Affordable segment presence to 100 branches & outreaches as on 31st Dec 2023.

The deposits with the company have increased to Rs 17134 crore at end December 2023.

India Ratings have upgraded the rating to “IND AA+” from “IND AA”; Outlook ‘Stable’ in January 2024.

Asset quality

Gross NPA ratio declined to 1.73% at end December 2023 from 1.78% a quarter ago and 4.87% a year ago. Meanwhile, Net NPA ratio also improved to 1.14% at end December 2023 from 1.19% a quarter ago.

In absolute terms, GNPA stood at Rs 1079 crore and NNPA at Rs 708 crore at end December 2023.

Retail GNPA is 1.67% end December 2023 as compared to 2.86% end December 2022 and 1.74% end September 2023.

Corporate GNPA is 3.35% end December 2023 as compared to 26.61% end December 2022 and 2.86% end September 2023.

The Company’s CRAR based on IndAS stood at 29.53% end December 2023, of which Tier I capital is 27.97% and Tier II is 1.56% as compared 24.60% end December 2022, of which Tier I capital was 22.43% and Tier II was 2.17%.

Book value of the company stood at Rs 560.2 per share, while adjusted book value was at Rs 533.0 per share at end December 2023.

Commenting on the performance Girish Kousgi, Managing Director & CEO said: “During the recent period, India Ratings upgraded the rating to ‘AA+’ from ‘AA’ with ‘Stable” outlook. The Company has also been awarded as ‘Great Place to Work’ by GPTW during the quarter. Our sustained focus on affordable segment helped us to achieve Rs 1,000 crore in disbursements and loan book within a year of operations. We continue to focus on the affordable segment and in process of identifying geographies/segments within the prime segment that offer better yields and growth. As we expand into newer geographies/segment, we plan to increase our network of branches/outreaches from 212 currently to 300 over the next few months. We are confident that our various efforts shall drive growth and profitability.”

Financial Performance 9MFY2024:

For the nine months ended December 2023 (9MFY2024), PNB Housing Finance reported 10% rise in Income from operations at Rs 5049.31 crore. Interest expense moved up 10% to Rs 3191.42 crore, while other expenses increased 15% to Rs 456.12 crore. Ensuing Gross profit was flat at Rs 1595.58 crore. Depreciation fell 5% to Rs 37.01 crore, while provision and write offs declined 70% to Rs 164.48 crore. PBT improved 37% to Rs 1394.09 crore. Effective tax rate stood at 23.34% 9MFY2024, compared with 24.71% in 9MFY2023. The PAT of the company improved 39% to Rs 1068.76 crore in 9MFY2024.

PNB Housing Finance: Consolidated Results
Particulars	2312 (3)	2212 (3)	Var %	2312 (9)	2212 (9)	Var %	2303 (12)	2203 (12)	Var %
Income from operations	1679.51	1713.64	-2	5049.31	4609.84	10	6199.07	5822.00	6
Other Income	76.49	82.88	-8	193.81	282.10	-31	330.59	378.73	-13
Total Income	1756.00	1796.52	-2	5243.12	4891.94	7	6529.66	6200.73	5
Interest Expenses	1086.62	996.34	9	3191.42	2890.47	10	3898.52	4064.46	-4
Other expenses	156.93	165.86	-5	456.12	397.90	15	527.51	422.56	25
Gross profit	512.45	634.32	-19	1595.58	1603.57	0	2103.63	1713.71	23
Depreciation	13.05	12.60	4	37.01	38.81	-5	51.44	53.39	-4
Profit before tax and Provisions	499.40	621.72	-20	1558.57	1564.76	0	2052.19	1660.32	24
Provisions and write off	59.10	254.84	-77	164.48	546.35	-70	691.28	576.36	20
Profit before tax	440.30	366.88	20	1394.09	1018.41	37	1360.91	1083.96	26
Provision for tax	101.86	97.75	4	325.33	251.69	29	314.91	247.48	27
PAT	338.44	269.13	26	1068.76	766.72	39	1046.00	836.48	25
EPS*(Rs)	52.1	41.5		54.9	39.4		40.3	32.2
Adj BV (Rs)	533.0	525.7		533.0	525.7		556.5	412.5
* Annualized on current equity of Rs 259.68 crore. Face Value: Rs 10, Figures in Rs Crore
Source: Capitaline Corporate Database

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( Results - Analysis 16-Jun-20 16:29 )