Capitaline

Results 24-Jan-24

Analysis

Can Fin Homes

AUM growth eases to 13%, margins improving

Can Fin Homes has posted strong 32% rise in the net profit to Rs 200.14 crore in the quarter ended December 2023 (Q3FY2024), driven by 31% increase in net interest income. The company has witnessed sharp improvement in the cost to income ratio and provisions remained elevated in Q3FY2024.

The net interest income of the company increased 31% yoy. The net interest margin improved to 3.92% in Q3FY2024 from 3.80% in the previous quarter and 3.47% in the corresponding quarter of last year. The loan growth has moderated to 13% end December 2023. The company witnessed some deterioration in asset quality due to slippage from restructured loans.

The disbursements of loans declined 22% yoy and loan sanctions also declined 21% in Q3FY2024 over Q3FY2023.

Can Fin Homes has posted 32% growth in the net profit to Rs 200.14 crore for the quarter ended December 2023 (Q3FY2024). Interest income increased 27% to Rs 901.24 crore, while interest expenses jumped 25% to Rs 566.02 crore. NII of the company galloped 31% to Rs 335.22 crore in Q3FY2024.

Operating expenses increased 14% to Rs 46.33 crore, allowing the operating profit to rise 34% to Rs 289.58 crore. Depreciation declined 4% to Rs 3.09 crore, while provisions surged 266% to Rs 30.81 crore in Q3FY2024. PBT jumped 25% to Rs 255.69 crore.

Effective tax rate fell to 21.7% in Q3FY2024 from 25.9% in Q3FY2023. The final bottomline of the company increased 32% growth in the net profit to Rs 200.14 crore in Q3FY2024.

Book value of the company stood at Rs 312.5 per share at end December 2023, while adjusted book value net of net NPA and 10% of restructured loans stood at Rs 300.0 per share at end December 2023.

Business highlights

The loan book of the company increased at moderate pace of 13% yoy and 2% qoq to Rs 34053 crore end December 2023. About 72.1% of the outstanding loan book is from Salaried Professionals. Further 89% of loam book is home loans.

The disbursement of the company declined 22% yoy to Rs 1879 crore, while sanctions also dipped 21% to Rs 2053 crore in Q3FY2024.

The net interest margin of the company improved on sequential basis to 3.92% in Q3FY2024 from 3.80% in Q2FY2024, while it also gained from 3.47% in Q3FY2023.

The yield on advances eased to 9.91% from 10.07% in Q2FY2024, while rose from 8.87% in Q3FY2023. The cost of funds was steady on sequential basis at 7.35% in Q3FY2024.

Gross NPA ratio of the company rose to 0.91% and net NPA ratio increased to 0.49% end December 2023 compared with 0.76% and 0.43% end June 2023, while also moved up from 0.60% and 0.30% end December 2022.

Financial Performance 9MFY2024:

Can Fin Homes has recorded 19% growth in the net profit to Rs 541.67 crore for the nine months ended December 2023 (9MFY2024). The interest income increased 31% to Rs 2596.23 crore, while interest expenses jumped 36% to Rs 1647.46 crore. NII of the company galloped 24% to Rs 948.77 crore in 9MFY2024.

Operating expenses increased 18% to Rs 136.77 crore, allowing the operating profit to rise 25% to Rs 812.82 crore. Depreciation fell 3% to Rs 8.55 crore, while provisions zoomed 550% to Rs 116.70 crore in 9MFY2024.

PBT rose 10% to Rs 687.58 crore. Effective tax rate declined to 21.2% in 9MFY2024 from 27.3% in 9MFY2023. The final bottomline of the company increased 19% to Rs 541.67 in 9MFY2024.

Can Fin Homes: Results
	2312 (3)	2212 (3)	Var %	2312 (9)	2212 (9)	Var %	2303 (12)	2203 (12)	Var %
Interest Inc.	901.24	709.54	27	2596.23	1978.23	31	2742.00	1987.83	38
Interest Exp.	566.02	452.94	25	1647.46	1210.04	36	1700.86	1153.51	47
Net Interest Inc.	335.22	256.60	31	948.77	768.19	24	1041.14	834.32	25
Other inc.	0.69	0.17	306	0.83	0.61	36	1.13	0.68	66
Total inc.	335.91	256.77	31	949.60	768.80	24	1042.27	835.00	25
Op. Exp.	46.33	40.61	14	136.77	116.00	18	164.02	143.20	15
OP	289.58	216.16	34	812.82	652.80	25	878.25	691.80	27
Woff/Prov. of B/D	30.81	8.42	266	116.70	17.96	550	41.76	46.94	-11
Dep.	3.09	3.23	-4	8.55	8.80	-3	12.46	9.81	27
PBT	255.69	204.51	25	687.58	626.04	10	824.03	635.06	30
Total Tax	55.55	53.02	5	145.91	170.63	-14	202.82	163.95	24
PAT	200.14	151.49	32	541.67	455.42	19	621.21	471.11	32
EPS*(Rs)	60.1	45.5		54.2	45.6		46.7	35.4
Adj BV(Rs)	300.0	253.0		300.0	253.0		263.9	219.2
* On current equity of Rs 26.63 crore. Face Value: Rs 2
Figures in Rs crore,
Source: Capitaline Corporate Database

Previous News

Benchmarks trade with modest gains; consumer durables shares advance
( Market Commentary - Mid-Session 13-Jun-23 14:38 )

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

Can Fin Homes to declare Quarterly Result
( Corporate News - 15-Dec-23 10:31 )

Can Fin Homes to consider fund raising
( Corporate News - 13-Jun-23 10:49 )

Can Fin Homes announces resignation of Chief Information Officer
( Corporate News - 05-Sep-24 13:25 )

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

Can Fin Homes fixes record date for final dividend
( Market Beat - Reports 22-Jul-22 09:37 )

Can Fin Homes
( Results - Analysis 24-Jan-24 07:36 )

Can Fin Homes board to mull fund raising on June 19
( Hot Pursuit - 13-Jun-23 13:37 )

Can Fin Homes appoints former Bandhan Bank Housing Finance head as MD, CEO
( Hot Pursuit - 20-Mar-23 08:58 )

Board of Can Fin Homes recommends Final Dividend
( Corporate News - 30-Apr-22 09:58 )