Shriram Housing Finance Records 81% YoY Rise In Q2 PAT

Shriram Housing Finance reported 81 per cent year-on-year growth in Profit After Tax (PAT) for Q2FY23 at INR 34 cr. For first half (H1) FY23, the PAT stood at 64.2 Cr, a growth of 117% YoY.

The company's Assets Under Management (AUM) grew by 54 per cent YoY to INR 6,546 Cr in Q2FY23. The disbursals for the quarter grew by 66 per cent YoY to INR 1,049 Cr.  For H1FY23, the disbursals stood at INR 1,844 Cr, a growth of 116 per cent over the same period last year.

The company has maintained an accelerated growth momentum with AUM growing at 52 per cent CAGR (compound annual growth rate) over the last three years, coupled with consistent improvement in asset quality.

Asset quality improved with Gross Stage-3 assets at 1.04 per cent (excluding RBI circular dated 12 Nov’21), an 87 bps YoY improvement. Net Interest Margins also improved by 124 bps YoY to 7.2 per cent for Q2FY23. The disbursement yields in the quarter increased by 70 bps over Q2FY22. The annualized ROA as on Q2FY23 stood at 2.6 per cent, an increase of 46 bps YOY.

“The availability of affordable housing and its credit gap has always been an issue. However, in recent years due to the policy stimulus, improving infrastructure and employment opportunities we are witnessing changes for the better. In fact, post the pandemic there has also been a shift in consumer living patterns, with many organisations opening offices in non-metros leading to higher demand for affordable housing finance. Our focus is to enhance our distribution network to widen our presence in the desired markets, which will help us build a continuous growth reservoir. We have crossed INR 6,500 Cr AUM and will continue to deliver robust growth in FY23.”