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PNB Housing Finance reported a 22.63% rise in Q2 FY25 net profit, reaching INR 469.68 crore, driven by robust retail segment performance, which grew 16.2% year-on-year. Revenue increased by 5.63% to INR 1,879.66 crore. Retail disbursements rose 28%, with the affordable loan segment surpassing INR 3,000 crore in assets. Gross NPAs declined to 1.24%, and assets under management grew 10.8%, reaching INR 74,724 crore. CEO Girish Kousgi highlighted the company's focus on sustainable growth in affordable housing. PNB Housing's strong asset quality and financial position underscore its strategic growth ambitions.
PNB Housing Finance has reported a 22.63% growth in its net consolidated profit for the quarter ending 30 September 2024. The company's profit after tax for Q2 FY25 reached INR 469.68 crore, up from INR 383 crore in the same period last year, as disclosed in a recent BSE filing. Advertisement
Regarding revenue, PNB Housing's net consolidated total income saw an increase of 5.63%, rising from INR 1,779.40 crore in Q2 FY24 to INR 1,879.66 crore in Q2 FY25. This growth was driven primarily by a strong performance in the retail asset segment, which expanded by 16.2% year-on-year. According to Girish Kousgi, Managing Director and CEO, the retail segment is expected to reach the company's projected 17% growth for FY25. Additionally, the affordable loan segment performed well, surpassing INR 3,000 crore in loan assets by October 2024.
Retail disbursements during Q2 FY25 grew by 28% year-on-year, reaching INR 5,341 crore. The portfolio asset quality continued to improve, with gross non-performing assets (NPA) reducing to 1.24% as of 30 September 2024, compared to the previous year. Total retail loan assets grew to INR 67,970 crore, a 16.2% year-on-year increase. Disbursements in the affordable and emerging market segments contributed 31% to overall retail disbursements for the quarter.
The company also completed the allotment of 1,18,965 equity shares of INR 10 each as part of the exercise of stock options and restricted stock units by employees during this period. This move contributed to PNB Housing's increasing net worth, which reached INR 15,867.77 crore as of 30 September 2024. Other financial metrics included a debt-to-equity ratio of 3.59, total debt-to-total assets ratio of 0.76, and a net profit margin of 24.99%. Gross NPA was recorded at 1.24%, and net NPA was reported at 0.84%.
Growth in assets under management (AUM) continued, with the company recording a 10.8% year-on-year rise, reaching INR 74,724 crore as of 30 September 2024. This was a 3% increase quarter-on-quarter. AUM growth was bolstered by recoveries from the retail written-off pool, with INR 48 crore recovered in Q2 FY25. The capital risk adequacy ratio (CRAR) stood at 29.13%, comprising 28.06% Tier I capital and 1.07% Tier II capital, indicating a strong financial position. In terms of borrowing costs, a slight reduction was noted, with the cost of borrowing for H1 FY25 at 7.88%, down from 7.99% in the previous period. The spread on loans, however, was at 2.16% in H1 FY25 compared to 2.60% in H1 FY24, indicating an area for improvement.
Reflecting on the results, Kousgi expressed optimism about the performance, noting the strength in the retail and affordable segments. He highlighted the consistent progress in line with PNB Housing's long-term strategic goals, adding that the company's robust growth in disbursements and AUM, combined with improvement in asset quality, signals sustainable growth for the business. The CEO's comments emphasised PNB Housing's intent to continue capitalising on India's housing finance market, focusing on affordable housing, disciplined growth, and financial stability.
With positive momentum across key financial indicators, PNB Housing Finance is on a trajectory that aligns with its future goals. The company's performance over the quarter reflects its focus on expanding market share in the retail segment and delivering value to its shareholders, reinforcing confidence in its growth strategy as it moves forward.
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