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SRG Housing Finance reported a 7.89% rise in Q3 FY25 net profit to INR 5.74 crore, while total income surged 24.96% to INR 40.25 crore. The company's AUM grew 29% year-on-year to INR 707.5 crore, with a new target of INR 1,000 crore AUM in 12-18 months. Expansion into Maharashtra, Karnataka, and Andhra Pradesh has begun contributing to revenue, though the cost-to-income ratio rose to 65.40%. With a strong capital adequacy of 39.85% and plans to raise INR 50 crore, SRG Housing Finance is positioning itself for aggressive growth in India's expanding housing finance sector.
SRG Housing Finance has announced a notable increase in its net profit for the third quarter of the fiscal year 2025, indicating a positive trajectory for the company. For the quarter ending December 31, 2024, the company reported a net profit of INR 5.74 crore, marking a 7.89% rise from INR 5.32 crore in the same quarter last year. This growth reflects the company's ongoing efforts to enhance its financial performance and expand its market presence. Advertisement
The company's total income also saw significant growth, reaching INR 40.25 crore in Q3 FY25, which is a 24.96% increase compared to INR 32.21 crore in the corresponding quarter of the previous fiscal year. This surge in income highlights SRG Housing Finance's successful strategies in increasing its business operations and attracting more customers.
Vinod Jain, the managing director of SRG Housing Finance, expressed confidence in the company's growth trajectory. He noted that the company achieved an Asset Under Management (AUM) growth of 29% year-on-year, reaching a milestone of INR 707.5 crore. Jain stated that the company is on track to achieve its goal of INR 750 crore AUM ahead of schedule and is now targeting INR 1,000 crore AUM within the next 12 to 18 months. This ambitious target reflects the company?s commitment to expanding its footprint in the housing finance sector.
Despite the positive growth figures, the company faces challenges, particularly concerning its cost-to-income ratio, which rose to 65.40% in Q3 FY25 from 63.66% in the same quarter last year. This increase is attributed to the company's investment in opening new branches in states like Maharashtra, Karnataka, and Andhra Pradesh, as well as enhancing its marketing and sales efforts. These new locations have begun to contribute to the company's revenue, accounting for 3% of total business during this quarter.
In addition to the operational challenges, SRG Housing Finance maintains a strong capital adequacy ratio of 39.85%, with Tier I capital at 39.41%. The company is also actively pursuing fundraising initiatives, recently approving a plan to raise approximately INR 50 crore from a prominent investor. This capital will support the company's aggressive growth strategy and help it navigate the competitive landscape of housing finance.
The housing finance sector in India is experiencing robust growth, driven by increasing demand for affordable housing and government initiatives aimed at boosting home ownership. SRG Housing Finance is well-positioned to capitalize on these trends, leveraging its expanding branch network and strong financial foundation. As the company continues to grow, it remains focused on improving its operational efficiency and enhancing customer service to maintain its competitive edge.
Overall, SRG Housing Finance's recent performance reflects a blend of strategic growth initiatives and the challenges of scaling operations. With a clear focus on expanding its AUM and enhancing its market presence, the company aims to solidify its position in the housing finance industry while navigating the complexities of a rapidly evolving market.
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