Can Fin Homes Limited, a leading housing finance company, has reported a robust performance for the first quarter, demonstrating strong growth in profitability and loan book expansion, albeit with some concerns regarding asset quality.

Financial Highlights

• Net Profit: Can Fin Homes registered a net profit of Rs 223.00 crore for Q1, marking a significant 12% increase from Rs 200.00 crore in the corresponding quarter of the previous year.
• Revenue: The company's revenue rose to Rs 1,020.40 crore, up 9.59% compared to Rs 931.10 crore in the same quarter last year.
• Loan Book: The outstanding loan book reached Rs 38,773.00 crore as of June 30, reflecting a 9% year-on-year growth from Rs 35,559.00 crore.
• Earnings Per Share (EPS): The EPS for Q1 stood at Rs 16.81, showing a 12.14% increase from Rs 14.99 in the same period last year.

Operational Performance

• Loan Disbursements: The company disbursed loans worth Rs 2,015.00 crore during Q1, up 9% from Rs 1,853.00 crore in the same period last year.
• Asset Quality: Gross Non-Performing Assets (GNPA) ratio increased to 0.98% from 0.87% on a quarter-on-quarter basis. Net Non-Performing Assets (NNPA) also rose to 0.54% from 0.46% quarter-on-quarter, indicating some deterioration in asset quality.
• Net Interest Margin (NIM): The NIM improved to 3.64% from 3.57% year-on-year.

Key Financial Metrics

Business Segment Performance

• The salaried and professional segment constituted 70% of the outstanding loan book as of June.
• Housing loans, including Commercial Real Estate (CRE), formed 86% of the total loan book.
• The average ticket size for incremental housing loans was Rs 24.00 lakh, while for non-housing loans, it was Rs 14.00 lakh.

Management Commentary

Suresh S Iyer, Managing Director & CEO of Can Fin Homes, stated, "We are pleased with our performance in Q1, which demonstrates the resilience of our business model and the trust our customers place in us. The 12% growth in net profit and 9% expansion in our loan book reflect our strong market position and effective strategies."

Asset Quality Concerns

Despite the overall positive performance, the company faced challenges in maintaining asset quality. The increase in both Gross and Net Non-Performing Assets ratios on a quarter-on-quarter basis indicates a need for closer monitoring and potential measures to address this trend.

Future Outlook

Can Fin Homes continues to focus on growth, asset quality, profitability, and liquidity. The company aims to expand its sourcing channels to attract different segments of borrowers and plans to evolve further with the help of technology, keeping abreast with changes in digitalization.

As of June 30, Can Fin Homes maintains a pan-India presence with 234 branches and offices spanning 21 states and union territories, positioning itself for continued growth in the housing finance sector.

The company's strong performance in Q1 sets a positive tone for the fiscal year, with a focus on sustainable growth and improved operational efficiency. However, addressing the recent uptick in non-performing assets will be crucial for maintaining investor confidence and long-term stability.

Can Fin Homes , a prominent player in the housing finance sector, has announced ambitious plans to bolster its financial position through significant debt and share issuances. The company's board has approved raising up to ₹11,000.00 crore through a combination of debt and equity instruments.

Approved Fundraising Plan

The board of Can Fin Homes has given its approval for raising funds up to ₹11,000.00 crore. This includes:

• Up to ₹10,000.00 crore through debt instruments
• Up to ₹1,000.00 crore through equity instruments, which may include Qualified Institutional Placement (QIP), preferential allotment, or rights issue

This strategic move signals the company's intent to expand its lending capacity and strengthen its financial position in the housing finance market.

Upcoming Annual General Meeting

The fundraising proposals will be presented to shareholders for their approval at the upcoming Annual General Meeting (AGM).

Dividend Announcement

Can Fin Homes has announced a final dividend of ₹6.00 per share.

New Board Appointment

The company has also strengthened its leadership by appointing Swarupananda Mallick as an Additional Director (Independent) for a term of three years. This appointment could bring fresh perspectives to the company's strategic decision-making process.

Implications for Can Fin Homes

The approved fundraising plan, totaling ₹11,000.00 crore, represents a strategic move by Can Fin Homes to secure substantial funding. This capital raise could be aimed at:

• Expanding the company's loan book
• Improving liquidity position
• Funding future growth initiatives
• Potentially refinancing existing debt

Next Steps

While the board has approved these proposals, they are still subject to shareholder approval at the upcoming AGM. Investors and market watchers will be keenly observing how these potential capital-raising activities unfold and their impact on Can Fin Homes' financial position and market standing in the competitive housing finance sector.

As the company moves forward with these plans, more details on the structure, timing, and specific use of funds are expected to be provided, offering greater clarity on Can Fin Homes' strategic direction and growth prospects.