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Informist, Thursday, May 8, 2025

--HUDCO MD: Aim for loan book of INR 5 tln by 2030 

--CONTEXT: Comments by HUDCO's mgmt in post-earnings analyst call 

--HUDCO MD: We remain cautiously aggressive on infra projects 

--HUDCO MD: Rise in operating expenses on account of new employees hired 

--HUDCO MD: Resolved one major account in current quarter 

--HUDCO MD: Hope to recover INR 4 bln to INR 5 bln in FY26 

By Siddhi Chauhan and Kabir Sharma 

MUMBAI – Housing & Urban Development Corp. Ltd. expects to recover around INR 4 billion to INR 5 billion in 2025-26 (Apr-Mar), the company's management said in a post-earnings analyst call Thursday. "One major account has been resolved in the current ongoing quarter," the management said. "And we are optimistic that we will take over around 400 to 500 crores (INR 4 billion to INR 5 billion) from the resolution of the NPAs (net performing assets) during the current financial year."

In the March quarter, HUDCO's write-off reversal stood at INR 1.42 billion, leading to an improvement in the gross non-performing asset ratio to 1.67% as of Mar. 31 from 2.71% a year ago, and the net NPA ratio fell to 0.25% from 0.36%. HUDCO set aside INR 18.11 billion provisions at the end of March and had a provision coverage ratio of 85.44% as of Mar. 31. 

Asked about the status of two non-performing exposures – one to Jammu & Kashmir and one to Ahmedabad – the management said both of these would be resolved during this financial year. The amouunt for Jammu & Kashmir is around INR 280 million to INR 290 million, and that for the Ahmedabad exposure is around INR 1.25 billion. 

Addressing a sharp rise in expenses, HUDCO's management said recruitment of 63 executives by the company resulted in a rise in employee related expenses. Growth in HUDCO's net profit in the March quarter was limited as expenses rose sharply due to a 50% jump in finance costs. The financier's bottomline grew only 4% on year and fell sequentially to INR 7.28 billion in the quarter ended March. High finance costs led to the total expenses rising 46.7% on year to INR 18.35 billion. 

The loan book, including prior operations, is seen at INR 5 trillion by 2030, the management of the company said. When asked about the funding of infrastructure projects, the management said it was cautiously aggressive. "We are into a segment which is very competitive and with a commitment that we will not compromise on the amount of any number," the management said. "...We are not too aggressive, but at the same time you can say we are a cautiously aggressive company towards the funding of the infrastructure projects."

At 1330 IST, shares of the lender were 0.9% higher at INR 216.17 on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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