Shriram Housing Finance' net up by 34 cr in Q2
The Profit After Tax of Shriram Housing Finance Limited, a leading affordable housing finance company for Q2FY23 was INR 34 Cr, an 81% YoY growth. For H1FY23, the PAT stood at 64.2 Cr, a growth of 117% YoY. Asset quality improved with Gross Stage-3 assets at 1.04% (excluding RBI circular dated 12 Nov’21), an 87 bps YoY improvement.
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Mumbai, Oct 21 The Profit After Tax of Shriram Housing Finance Limited, a leading affordable housing finance company for Q2FY23 was INR 34 Cr, an 81% YoY growth. For H1FY23, the PAT stood at 64.2 Cr, a growth of 117% YoY. Asset quality improved with Gross Stage-3 assets at 1.04% (excluding RBI circular dated 12 Nov'21), an 87 bps YoY improvement.
Net Interest Margins also improved by 124 bps YoY to 7.2% for Q2FY23.
The disbursement yields in the quarter increased by 70 bps over Q2FY22. The annualized ROA as on Q2FY23 stood at 2.6%, an increase of 46 bps YOY.
The company is investing in growing the distribution by scaling up its network footprint across the identified key focus states. The branch network stands at 112 branches as on Sep'22. The company will continue to expand its distribution footprint and expects to the end the financial year with ~150 branches. In addition to this, the company continues to offer its products through an additional 211 branches from the Shriram group network, giving it an overall presence across 323 locations.
Shriram Housing Finance witnessed an increase in the usage of digital platforms across the customer lifecycle in H1FY23. The company launched a sales fulfilment tool – GrihaPoorti, a Tab based Application – for its sales team to drive digital customer onboarding.
For the quarter gone by, more than 68% of all customers were sourced through the app. The company is working towards enhancing its platforms and services with API-based integrations which will lead to simplification and quicker turnaround.
Commenting on the results Ravi Subramanian, MD & CEO, Shriram Housing Finance said, "The availability of affordable housing and its credit gap has always been an issue. However, in recent years due to the policy stimulus, improving infrastructure and employment opportunities we are witnessing changes for the better. In fact, post the pandemic there has also been a shift in consumer living patterns, with many organisations opening offices in non-metros leading to higher demand for affordable housing finance. Riding on the back of this largely untapped market Shriram Housing Finance has steadily moved to become the 4th largest affordable housing finance company in India today."
With our widening distribution network, we would continue to outpace the industry growth. Our focus is to enhance our distribution network to widen our presence in the desired markets, which will help us build a continuous growth reservoir. We have crossed INR 6,500 Cr AUM and will continue to deliver robust growth in FY23, he added.
