Capitaline

Results 22-Jul-22

Analysis

Can Fin Homes

Strong show with robust loan growth and asset quality

Can Fin Homes has posted strong 49% jump in the net profit to Rs 162.21 crore in the quarter ended June 2022 (Q1FY2023), driven by sharp 40% surge net interest income and improvement in the cost to income ratio and credit cost.

The interest income of the company galloped 40% yoy, driven by improvement in net interest margin and acceleration in loan growth. The company also maintained healthy asset quality, which is one of the best in the industry.

The loan growth accelerated to 24% end June 2022 from 21% end March 2022. The disbursements and loan sanctions have continued to increase at robust pace in Q1FY2023.

The interest income moved up 36% to Rs 611.21 crore, while the interest expenses increased 33% allowing the net interest income to surge 40% to Rs 255.11 crore. The operating expenses increased 37% to Rs 38.31 crore leading to 40% jump in the operating profit to Rs 217.17 crore.

The company has reversed provisions of Rs 3.69 crore in Q1FY2023, mainly driven by write back of standard asset provisions of Rs 11.66 crore, while NPA provisions stood at Rs 7.97 crore. the depreciation declined 9% to Rs 2.16 crore. PBT increased 50% to Rs 218.69 crore.

An effective tax rate was steady at 25.8%, leading to 49% increase in the net profit to Rs 162.21 crore.

Book value of the company stood at Rs 242.5 per share, while the adjusted book value net of net NPA and 10% of restructured loans stood at Rs 2314 per share end June 2022.

Business highlights

The disbursement of the company galloped 93% to Rs 1722 crore, while sanctions improved 111% to Rs 1751 crore in Q1FY2023.

The loan book moved up at an accelerated 24% to Rs 27538 crore. About 74% of the outstanding loan book is from Salaried Professionals. Further 90% of loam book is home loans.

The net interest margin of the company declined on sequential basis to 3.6% in Q1FY2023 from 4.15% in Q4FY2022, while increased from 3.30% in Q1FY2023. The yield on advances rose to 8.46% from 8.06% in Q1FY2022. The cost of funds rose to 5.80% from a quarter ago.

Gross NPA ratio of the company was nearly flat at 0.65% and net NPA ratio at 0.30% end June 2022 compared with 0.65% and 0.30% end March 2022, while dipped from 0.90% and 0.57% end June 2021.

Financial performance FY2022

Interest income declined 2% to Rs 1987.83 crore, while interest expense fell 5% to Rs 1153.51 crore, leading to 3% rise in net interest income to Rs 834.32 crore. Operating expenses moved up 25% to Rs 143.20 crore. Operating profit declined 1% to Rs 691.80 crore. Provisions dipped 32% to Rs 46.94 crore, while depreciation increased 3% to Rs 9.81 crore. PBT rose 3% to Rs 635.06 crore. An effective tax rate eased to 25.8% from 26.2%. Net profit moved up 3% to Rs 471.11 crore in FY2022.

Can Fin Homes: Results
	2206 (3)	2106 (3)	Var %	2203 (12)	2103 (12)	Var %
Interest Inc.	611.21	450.80	36	1987.83	2018.14	-2
Interest Exp.	356.10	268.04	33	1153.51	1208.33	-5
Net Interest Inc.	255.11	182.76	40	834.32	809.81	3
Other inc.	0.37	0.04	825	0.68	0.29	134
Total inc.	255.48	182.80	40	835.00	810.10	3
Op. Exp.	38.31	27.88	37	143.20	114.42	25
OP	217.17	154.92	40	691.80	695.68	-1
Woff/Prov. of B/D	-3.69	6.55	-156	46.94	68.53	-32
Dep.	2.16	2.37	-9	9.81	9.57	3
PBT	218.69	146.00	50	635.06	617.58	3
Total Tax	56.48	37.15	52	163.95	161.52	2
PAT	162.21	108.85	49	471.11	456.06	3
EPS* (Rs)	48.7	32.7		35.4	34.3
Adj BV (Rs)	231.4	194.7		219.1	185.9
* annualized on current equity of Rs 26.63 crore. Face Value: Rs 2
Figures in Rs crore,
Source: Capitaline Corporate Database

Previous News

Can Fin Homes
( Analyst Meet / AGM - Conference Call 18-Oct-22 18:24 )

Can Fin Homes
( Results - Analysis 18-Oct-22 18:24 )

Can Fin Homes to convene board meeting
( Corporate News - 10-Oct-23 10:41 )

Can Fin Homes
( Results - Analysis 27-Jan-22 18:19 )

Can Fin Homes
( Results - Analysis 28-Apr-23 08:27 )

Board of Can Fin Homes to consider issuance of NCDs up to Rs 1764 cr
( Corporate News - 14-Mar-23 18:44 )

Can Fin Homes gains as board OKs raising upto Rs 5,000 cr
( Hot Pursuit - 20-Jun-23 09:32 )

Balmer Lawrie & Company Ltd leads losers in 'A' group
( Hot Pursuit - 19-Sep-22 15:00 )

Can Fin Homes standalone net profit rises 37.45% in the March 2020 quarter
( Results - Announcements 15-Jun-20 17:44 )

Can Fin Homes standalone net profit rises 11.54% in the September 2023 quarter
( Results - Announcements 18-Oct-23 07:40 )

Can Fin Homes announces change in Chief Risk Officer
( Corporate News - 20-May-22 18:56 )