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HomeMarket NewsHUDCO Q1 Results: Strong growth in core income, asset quality improves
98.59% of HUDCO's loan book consists of loans given to the government and its agencies. The management has earlier spoken about its plans to have zero net NPAs.
Housing and Urban Development Corporation (HUDCO) Ltd. reported results for the June quarter after market hours on Wednesday, August 6, which were higher on a year-on-year basis.
Net Interest Income (NII) or core income for the quarter increased by 32% from the same quarter last year to ₹961 crore from ₹724.7 crore.
Net profit for the period also increased 13% from the year-ago quarter to ₹630.2 crore from ₹558 crore during the same quarter last year.
HUDCO's asset quality saw improvement on a sequential basis. Gross NPA at the end of the June quarter stood at 1.34% from 1.67% in March, while Net NPA improved to 0.09% from 0.25% in March. The improvement in asset quality was courtesy of a long-pending NPA account worth ₹277.68 crore, which was resolved, while four NPA accounts worth ₹7.27 crore were technically written-off.
In its business updates for the quarter, HUDCO's loan sanctions more than doubled from last year, growing by 143% to ₹34,224 crore, while loan disbursements remained largely flat at ₹12,812 crore.
98.59% of HUDCO's loan book consists of loans given to the government and its agencies. The management has earlier spoken about its plans to have zero net NPAs.
Provision Coverage Ratio at the end of the June quarter stood at 93.49%.
Shares of HUDCO ended at the lows of the day ahead of the results announcement, ending 3.2% lower at ₹211.65. The stock is down 33% from its recent 52-week high of ₹312.
