India Shelter Finance Corp Ltd. demonstrates robust performance in Q3 FY24, with a 42% year-over-year increase in Asset Under Management (AUM) and a notable 55% surge in Profit After Tax (PAT) to INR 62 Crores. As of December 31, 2023, Gross and Net Stage 3 NPAs improved to 1.2% and 0.9%, respectively, from 2.3% and 1.8% in December 2022. The company's Net Worth reached INR 2,209 crore with a liquidity reserve of INR 1,488 crore. Despite market challenges, the company maintains a stable cost of funds and enhances Return on Assets (RoA) and Return on Equity (RoE). Significant reductions in Non-Performing Assets (NPAs) underscore resilience and growth potential in the housing finance sector.
India Shelter Finance Corporation Limited announced its financial results for the third quarter of fiscal year 2024, marking a continuation of its success following an Initial Public Offering (IPO) in the previous year. Managing Director and CEO, Rupinder Singh, expressed gratitude to investors for their pivotal role in the IPO’s success, which raised a total of INR 1,200 crore, with a primary infusion of INR 800 crore, setting the stage for meeting future capital requirements.
The company’s performance for the third quarter aligns with expectations, showing Asset Under Management (AUM) growth of 42% Year over Year (YoY), propelled by a significant 36% YoY increase in disbursements. Singh highlighted the strategic focus on funding self-employed individuals with precise ticket sizes, highlighting the company’s commitment to maintaining customer service while prioritising growth, asset quality, and profitability.
Gross Stage 3 and Net Stage 3 Non-Performing Assets (NPAs) stood at 1.2% and 0.9%, respectively, as of 31st December 2023, marking an improvement from 2.3% and 1.8% as of 31st December 2022. Additionally, the 30+ Days Past Due (DPD) ratio stood at 3.5% as of 31st December 2023. The Credit Cost for the quarter remained stable at 0.3%. The company’s Net Worth reached INR 2,209 crore as of December 2023, with a liquidity reserve of INR 1,488 crore.
Despite challenges posed by a rising interest rate market, the cost of funds was maintained at 8.8% in Q3 FY24. Profit after tax increased by an impressive 55% YoY to INR 62 crore in Q3FY24 compared to INR 40 crore in Q3 FY23. The company delivered an annualised Return on Assets (RoA) of 4.7% and an annualised Return on Equity (RoE) of 13.9% in Q3FY24, demonstrating notable improvements from 4.2% and 13.8% respectively, in Q3FY23.
India Shelter Finance Corporation Ltd. continues to be committed to providing value to its shareholders and stakeholders by providing affordable housing finance to underserved segments of society through a strong distribution network and a retail-focused finance model. The company, led by a seasoned management team, strives to improve customer experience and operational efficiency by leveraging scalable IT infrastructure integrated throughout the loan lifecycle and effectively navigating market dynamics.
With a solid foundation laid during the IPO and a demonstrated track record of resilience and growth, India Shelter Finance Corporation Ltd. is poised to continue its upward trajectory, further solidifying its position in the housing finance sector and contributing positively to the financial landscape.
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