Grihum Housing Finance, formerly Poonawala Housing Finance, reported a 77% increase in net profit after tax, reaching INR 46 crore in the first quarter of FY25. The company's assets under management (AUM) surged 39% year-on-year to INR 8,700 crore, expanding its customer base to over 80,000. The firm added 28 new branches, bringing its total to 210 locations. However, gross non-performing assets stood at 1.296%, highlighting the need for effective risk management. Recent equity infusion of INR 1,098 crore from TPG has bolstered Grihum's net worth to INR 2,390 crore, enhancing its lending capacity amid rising housing demand.
Grihum Housing Finance, previously known as Poonawala Housing Finance, has shown impressive growth in its first-quarter results for the current fiscal year. The company announced a net profit after tax of INR 46 crore, marking a significant increase of 77% compared to the same period last year. This positive trend highlights the company's robust financial performance and commitment to serving its customers in the housing finance sector.
The company's assets under management (AUM) have surged to INR 8,700 crore, reflecting a remarkable year-on-year growth of 39%. Grihum Housing Finance has expanded its customer base to over 80,000, showcasing its growing presence in the housing finance market. Manish Jaiswal, the Managing Director and Chief Executive Officer of Grihum Housing Finance, stated that their organisation is aligned with regulators and financial institutions. The stable growth they have experienced is a testament to our strategic initiatives and customer-centric approach.
Additionally, the company's efforts to expand its physical presence have been notable. Grihum Housing Finance added 28 new branches in FY24, increasing its total network to 210 locations. This expansion is part of a larger strategy to improve accessibility for customers seeking housing loans and to strengthen its market position in various regions.
Despite the growth, the company faces challenges. The gross non-performing assets (NPAs), which represent bad loans, stood at 1.296%. Managing NPAs is crucial for the long-term sustainability of any finance company. Grihum Housing Finance will need to implement effective risk management strategies to mitigate potential losses and maintain its profitability.
In recent developments, Grihum raised fresh equity of INR 1,098 crore from TPG, a US private equity firm. This infusion of capital has nearly doubled the company's net worth, pushing it to INR 2,390 crore. Such financial backing not only strengthens Grihum's balance sheet but also enhances its ability to lend more aggressively in the housing finance sector, which is expected to grow further as demand for affordable housing increases across India.
The Indian housing finance market has shown resilience, with a growing population and urbanization driving demand for housing loans. Government initiatives aimed at increasing homeownership, such as subsidies and tax benefits for first-time buyers, are also contributing factors. As a key player in this market, Grihum Housing Finance is positioned to capitalise on these trends.
In conclusion, Grihum Housing Finance's strong financial performance in the first quarter, coupled with its expansion efforts and strategic partnerships, reflects a positive outlook for the company and the housing finance sector as a whole. Continued focus on customer needs and risk management will be essential as the company aims to navigate the challenges ahead and sustain its growth trajectory in the competitive landscape of housing finance.
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