The share price of Can Fin Homes surged over 11% in early trade and presently quote 8.37% stronger at Rs 328.90 after the non-banking arm of the Canara Bank reported stupendous growth in fiscal fourth quarter earnings.
Can Fin Homes net interest income for the March quarter rose 35% to Rs 186 crore. Net profit too saw an increase of 36% from the preceding year to Rs 91 crore.
The company reported a NIM of 3.52%, and a RoAA of 1.93% with a RoE of 17.44%
However, sequentially, the profit was lower during the January-March 2020, compared with Rs 106.61 crore in the December 2019 quarter.
Asset quality remained mostly steady at 0.76% as compared to 0.8% in the previous quarter.
It had reported a loan book growth of 13% while net interest margin rose to 3.52% from 3.29%. 90% of fresh loan approvals during were for Housing, 5% for Top up Loans 5% for Loans Against Property (LAP)
For the full financial year 2019-20, the PAT grew 26.74% to Rs 376.12 crore, compared with Rs 296.76 crore in 2018-19. Income was up at Rs 2,030.95 crore during 2019-20, from Rs 1,731.40 crore a year ago. 71 % of the outstanding loan book as Mar’20 comes from Salaried Professionals; 90% from HL
The loan book reached Rs. 20708 Cr (+13%) with a clientele base of 1.70 lakh.
The board of directors recommended a dividend of Rs 2 per share, subject to shareholders’ approval at the upcoming annual general meeting.
While the Q4FY20 performance was definitely good, we expect significant industry headwinds in FY21, nevertheless we expect the company to have the ability to come out of this difficult market situation and resume strong growth from FY22 onwards ahead.
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.