Earnings Review
Robust income, fall in provisions push HUDCO PAT up 13% YoY
This story was originally published at 17:53 IST on 6 August 2025
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--HUDCO Apr-Jun total income INR 29.45 bln vs INR 21.97 bln year ago
--HUDCO Apr-Jun net profit INR 6.30 bln vs INR 5.58 bln year ago
--HUDCO: Net credit impaired assets ratio 0.09% on Jun 30 vs 0.33% year ago
--HUDCO: Gross credit impaired assets ratio 1.34% on Jun 30 vs 2.42% yr ago
--HUDCO: Provision coverage ratio at 93.49% as on Jun 30
--HUDCO: Provisions per expected credit loss INR 17.03 bln as on Jun 30
--HUDCO interim dividend record date is Aug 14
--HUDCO to pay INR 1.15 per share interim dividend
--HUDCO Apr-Jun loan disbursements INR 128.12 bln vs INR 126.25 bln year ago
--HUDCO loans outstanding INR 1.344 tln as on Jun 30, up 30% on year
By Krity Ambey
NEW DELHI – Robust interest income and a fall in provisions helped Housing and Urban Development Corp. Ltd. post a strong net profit in the June quarter. The company's net profit rose 13% on year to INR 6.30 billion in the reporting quarter. Sequentially, the profit was down 13.4%.
The housing financier's interest income grew 34.5% on year to INR 29.25 billion in the first quarter of the financial year started Apr. 1. Interest income in Apr-Jun was slightly higher than INR 28.21 billion in the trailing quarter.
The company's revenue from operations was up 34.2% on year at INR 29.37 billion in the June quarter. The lender reported a total income of INR 29.45 billion in Apr-Jun, up 34.1% on year and 3.2% on quarter.
The non-banking finance company's provision on loans as per expected credit loss in Apr-Jun fell 22.7% on year to INR 17.03 billion. Sequentially, as well, the lender's provisions as per expected credit loss were down 6%. HUDCO also reported a provision reversal of INR 1.03 billion in the June quarter, against INR 186.90 million in the corresponding period a year ago and INR 1.42 billion provision reversal in the trailing quarter.
HUDCO's asset quality improved in the June quarter. The net non-performing assets ratio recovered to 0.09% as on Jun. 30 from 0.25% on Mar. 31 and 0.33% on Jun. 30, 2024. Its gross non-performing asset ratio also improved to 1.34% as on Jun. 30 from 1.67% at the end of trailing quarter and 2.42% on Jun. 30, 2024. The non-banking finance company's provision coverage ratio was at 93.49% as on Jun. 30.
The company's cost of funds fell to 7.07% in the reporting quarter from 7.36% in the corresponding period last year. As of Jun. 30, the New Delhi-based company's net interest margin was 2.94% compared to 3.00% a year ago. HUDCO has not disclosed its cost of funds and net interest margin for the trailing quarter either in the financial results statement for the June quarter or in those of the March quarter.
Total deposits with the company rose only marginally to INR 128.12 billion as on Jun. 30 from INR 126.25 bln a year go. But the advances increased 30% on year to INR 1.344 trillion.
The NBFC, whose results were released post-market hours, also declared an interim dividend of INR 1.15 per share, with Aug. 14 as the record date for reckoning eligibility of shareholders. On Wednesday, shares of HUDCO had ended 3.2% lower at INR 211.82 on the National Stock Exchange. End
Edited by Tanima Banerjee
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