Earnings Outlook
Modest loan growth likely to weigh on HUDCO's Jan-Mar PAT
This story was originally published at 11:00 IST on 29 April 2025
Register to read our real-time news.Informist, Tuesday, Apr. 29, 2025
By Krity Ambey
NEW DELHI – Housing and Urban Development Co. Ltd. is expected to report moderate growth in net profit for the quarter ended March. The moderation in bottom line can be attributed to modest loan growth and negative credit cost, according to analysts.
HUDCO is projected to report a net profit in the range of INR 6.93 billion to INR 8.17 billion for Jan-Mar, with Elara Securities (India) Pvt. Ltd. estimating the lower end and Nirmal Bang Equities Pvt. Ltd. the upper end. The average of the three estimates stands at INR 7.40 billion, which is almost flat sequentially, and 5.7% higher on year.
The housing financier is yet to announce the date for its board meeting to consider the financial results for Jan-Mar.
The net interest income is estimated between INR 9.68 billion and INR 10.49 billion, averaging INR 10.15 billion, up 33.4% year-on-year, but only marginally higher sequentially. As of December-end, HUDCO's outstanding loans stood at INR 1.19 trillion, up 41% on year, with continued strength in housing and urban infrastructure financing.
Nirmal Bang Equities described Jan-Mar as "a strong quarter" for HUDCO, citing "robust sanctions pipeline and disbursements" and "benign credit cost". Elara Securities, on the other hand, expects credit costs to rise by 22 bps on quarter, weighing on profit. "The outlook on asset quality would be a key monitorable," Sharekhan Ltd said in its report.
Both Nirmal Bang and Elara Securities maintain a 'Buy' rating on HUDCO, with target prices of INR 255 and INR 361, respectively. Sharekhan, which has a 'positive' stance, set a target of INR 260. At 1036 IST, shares of HUDCO were up 1.0% at INR 228.70 on the National Stock Exchange.
Following are the Jan-Mar earnings estimates for HUDCO based on reports from three brokerage firms:
| Brokerage | Net interest income (in INR million) | Net profit (in INR million) |
| Nirmal Bang Equities Pvt Ltd | 9,684.00 | 8,171.00 |
| Elara Securities (India) Pvt Ltd | 10,488.00 | 6,933.00 |
| Sharekhan Ltd | 10,270.00 | 7,090.00 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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