Earnings Outlook
Write-backs may boost PNB Housing Finance's Oct-Dec PAT
This story was originally published at 22:22 IST on 17 January 2025
Register to read our real-time news.Informist, Friday, Jan. 17, 2025
By Shubham Rana
NEW DELHI – PNB Housing Finance Ltd. is expected to report a healthy net profit for the quarter ended December thanks to provision write-backs, with the company's net interest income seen growing in double digits from a year ago. The company will announce its Oct-Dec earnings on Tuesday. On Friday, its shares ended 0.9% higher at INR 903.90 on the National Stock Exchange.
The company's net profit for Oct-Dec is seen in the range of INR 4.73 billion and INR 5.10 billion, according to three brokerages. In the year-ago quarter, the company's net profit was INR 3.47 billion. In Jul-Sept, PNB Housing had reported a profit of INR 4.72 billion.
Motilal Oswal Financial Services expects provision write-backs from recoveries in both retail and corporate written-off pools in the quarter ended December. The company had recovered INR 480 million from retail written-off pool in Jul-Sept.
The net interest income--the difference between interest earned and expended--is seen ranging from INR 6.67 billion and INR 7.28 billion, as per the three brokerages. The company's net interest income in Jul-Sept was INR 6.50 billion and a year ago it was INR 5.86 billion. Motilal Oswal expects the company's net interest margin to remain largely stable in Oct-Dec from the previous quarter at around 3.68%.
The company's loan growth is expected to be around 17% on year, Motilal Oswal said. The total loan book of the company was INR 695.01 billion as of Sept. 30, up 14.2% from a year ago.
Commentaries on the asset quality of the retail loan book, net interest margin, and credit costs are the key monitorables, Motilal Oswal said in a pre-earnings report. The gross non-performing asset ratio of the company eased to 1.24% as on Sept. 30 from 1.35% a quarter ago and the net non-performing asset ratio moderated to 0.84% as of Sept. 30 from 0.92% a quarter ago.
Following are the Oct-Dec earnings estimates for PNB Housing Finance based on reports from three brokerage firms in descending order by the estimate of net profit:
| Brokerages | Net interest income (in INR million) | Net Profit (in INR million) |
| JM Financial Institutional Securities | 7,276.00 | 5,098.00 |
| Motilal Oswal Financial Services | 6,809.00 | 4,810.00 |
| Nirmal Bang Institutional Equities | 6,672.00 | 4,732.00 |
End
Edited by Ashish Shirke
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