Aadhar Housing Finance has posted a 15.31% increase in its net consolidated profit for Q2 FY25, reaching INR 227.51 crore. The company's total income surged by 21.57% to INR 764.28 crore. It also expanded its branch network, adding 22 new branches in FY25, and saw its assets under management (AUM) grow by 21% to INR 22,817 crore. The company's return on assets (ROA) increased to 4.2%, and its return on equity (ROE) stood at 16.5%. Aadhar's efforts to improve asset quality were reflected in a reduction in gross non-performing assets (NPA) to 1.29%.
Aadhar Housing Finance has reported a notable 15.31% growth in its net consolidated profit for the quarter ending September 30, 2024. The company's profit after tax (PAT) for Q2 FY25 reached INR 227.51 crore, up from INR 197.30 crore in the same quarter of the previous fiscal year, according to a filing with the Bombay Stock Exchange (BSE).
The company also saw significant growth in its net consolidated total income, which increased by 21.57%, rising to INR 764.28 crore in Q2 FY25 compared to INR 628.67 crore in the same period last year. This strong performance underscores the company's robust business model and its ability to drive consistent growth in a competitive market.
Rishi Anand, Managing Director & CEO of Aadhar Housing Finance, highlighted the company's ongoing expansion efforts, noting that it had successfully added nine new branches during the quarter. This brings the total number of new branches opened in the current financial year to 22. The expansion is expected to further enhance the company's reach and customer base, supporting its growth trajectory in the housing finance sector.
As of September 30, 2024, Aadhar Housing Finance's assets under management (AUM) grew by a substantial 21%, reaching INR 22,817 crore, up from INR 18,885 crore on the same date in 2023. The increase in AUM reflects the company's expanding loan portfolio and its ability to secure capital in a favorable financial environment. The company's net worth also grew to INR 5,872 crore as of September 30, 2024, which includes INR 1,000 crore from IPO proceeds (gross) received through primary infusion.
The company's profitability is further reflected in its strong return on assets (ROA) for the first half of FY25, which stood at 4.2%, up from 4.0% during the same period in FY24. Additionally, Aadhar Housing Finance's return on equity (ROE) for the first half of FY25 was 16.5%, highlighting its ability to generate value for its shareholders.
Aadhar Housing Finance also made significant strides in improving its asset quality, with its gross non-performing assets (NPA) as of September 30, 2024, standing at 1.29%. This represents a marked improvement from 1.35% on the same date in 2023, reflecting the company's efforts to maintain a healthy loan book and minimize defaults.
Overall, Aadhar Housing Finance's strong financial performance, expanding branch network, and improving asset quality place it in a strong position to continue its growth in the housing finance sector while maintaining a focus on profitability and operational efficiency.
Aadhar Housing Finance's stellar financial performance, with growth in profit, total income, and AUM, along with an expanding branch network, positions the company strongly in the housing finance sector. Continued improvement in asset quality and profitability highlights its commitment to operational efficiency and shareholder value, ensuring sustained growth.
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