Dewan Housing Finance Corporation – Realty Traction Helps Post Strong Financial Performance

Dewan Housing Finance Corporation has come out with a strong financial performance for the quarter ended Dec 2012. The total income and the bottomline of the company stood at Rs 840.18 crore and Rs 91.24 crore as against Rs 661.52 crore and Rs 74.97 crore in Dec 2011. This has resulted in a topline growth of 27.01 % and bottomline growth of 21.70 % on a YoY basis.

As we have mentioned earlier, the Realty segment has been picking up some space and so has the demand for the housing loans. Exactly the same has happened in Dec 2012 where the DHFLs sanctioned loans amounting to Rs 3922.13 crore against Rs 3189.53 crore - a strong up-move of 23%. The disbursement also increased by 31% to Rs 2983.32 crore (Rs 2279.78 crore in Dec 2011). We have been quite positive on the housing finance companies as we had predicted the repo rate cut leading to increased inquiries for housing loans. And as expected, a 25 basis points repo rate cut was announced by the RBI on Jan 29, 2013. So going ahead we expect the performance of the company to improve further.

The operational parameters (like Net Interest Margins, Net NPAs and capital adequacy), details are not yet out. We will update our readers as and when the figures are available.