DHFL reports 29 % rise in Q2 profits; stock surges in trade

Shahrukh Khan endorsed housing finance major, Dewan Housing Finance has posted a stellar set of second quarter earnings by posting a profit of 29 per cent at Rs 232.61 crore for the quarter ended September 30, 2016 as compared to Rs 180.37 crore for the same quarter in the previous year.

Total income of the company has increased by 19.66 per cent at Rs 2167.72 crore for Q2FY17 as compared to Rs 1811.64 crore for the corresponding quarter of the previous year. NII (net interest income) has increased in excess of 20 per cent in the quarter. Margins have expanded owing to lower funding cost, courtesy funds raised at lower cost.

Debt equity ratio for half yearly ending September 30 stands at 12.82 as against 11.34 in the corresponding period of last fiscal.

Loans sanctioned for the quarter in review amounted to Rs 8437 crore compared to Rs 7667 crore during the previous corresponding period, showing an increase of 10 per cent.

According to Kapil Wadhawan, CMD, DHFL " We are extremely optimistic about next two qtrs. H1 of the fiscal is generally on a softer side in terms of loan growth. Cost benefit from money raised has not been factored in Q2 results. Though, we saw reduction in cost of funds in Q2 by 20 basis points."

Reacting to Q2 numbers, shares of DHFL saw spike in trade as they were inching upwards to newer highs at Rs 310.