Gruh Finance Sees Strong June Quarter Numbers
DSIJ Intelligence / 08 Jul 2013
The housing finance company has posted a higher topline and net profits on a yearly basis. It also saw a significant improvement in its asset quality.
Gruh Finance, a part of the HDFC Group, has posted a very good set of numbers in the first quarter of FY14. The company’s topline has increased by 24% on a yearly basis to Rs 182.6 crore. This was backed by the robust disbursement witnessed during the quarter, which increased by 28.6% on a yearly basis to stand at Rs 566.86 crore.
During the period, Gruh Finance’s net profit saw a jump of 26% on a yearly basis to Rs 33.77 crore. There was a marked improvement in the asset quality, with the Gross NPAs declining from 0.69% of loan assets at the end of Q1FY13 to 0.46% for Q1FY14. On an absolute basis too, the gross NPAs have declined from Rs 29.73 crore to Rs 26.3 crore in the same period.
Following the result announcement, the stock price of the company jumped by almost 2% in today’s trades while the market ended in the red. Its CMP of Rs 233.90 discounts the book value of the company by 8x, which looks expensive. However, keeping in mind the robust results posted by the company, we advise investors to remain invested in the company for a long-term investment horizon.
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