HUDCO Reports 7.5% Increase in Q2 Net Profit, Declares Rs 1 Interim Dividend

Housing & Urban Development Corporation Ltd. (HUDCO), a leading provider of housing and urban infrastructure financing, has reported a 7.5% year-over-year increase in net profit for the second quarter. The company also announced an interim dividend of Rs 1 per share.

Financial Performance

For the quarter ended September 30, HUDCO posted a net profit of Rs 709.83 crore, up from Rs 688.62 crore in the same period last year. The company's revenue from operations saw a significant jump, rising to Rs 3,219.03 crore from Rs 2,517.72 crore in the corresponding quarter of the previous year, marking a robust 27.9% increase.

Key Financial Highlights

Particulars (in Rs crore)	Q2 Current	Q2 Previous	YoY Change
Revenue from Operations	3,219.03	2,517.72	+27.9%
Interest Income	3,197.32	2,459.31	+30.0%
Net Profit	709.83	688.62	+7.5%
Total Income	3,251.02	2,526.14	+28.7%

The company's interest income, which forms the bulk of its revenue, grew by 30% to Rs 3,197.32 crore, reflecting HUDCO's strong core operations in housing and urban infrastructure financing.

Dividend Declaration

HUDCO's Board of Directors has declared a second interim dividend of Re 1 per equity share (10% on the face value of Rs 10 each) for the financial year. The company has set Wednesday, November 19, as the record date for determining shareholder eligibility for this dividend.

Operational Performance

During the half-year ended September 30, HUDCO reported the closure of six Non-Performing Assets (NPAs) in its Project Loan portfolio through repayment, legal recourse, or settlement by borrowers. The company also undertook a technical write-off for seven chronic NPA cases, amounting to Rs 12.94 crore, in line with its Board-approved Technical Write-off policy.

Balance Sheet Strength

As of September 30, HUDCO's total assets stood at Rs 1,49,266.01 crore, with loans forming a significant portion at Rs 1,44,209.48 crore. The company's net worth reached Rs 18,037.03 crore, indicating a strong capital base.

Market Position and Future Outlook

HUDCO continues to maintain a strong position in the housing and urban infrastructure financing sector. The company's ability to raise funds through various instruments, including the recent launch of Capital Gain Tax Exemption Bonds under Section 54EC of the Income Tax Act, demonstrates its financial flexibility and market trust.

With a focus on supporting housing and urban development projects across India, HUDCO is well-positioned to benefit from the country's ongoing urbanization and infrastructure development initiatives. The company's consistent dividend payouts also make it an attractive option for investors seeking regular income.

As HUDCO moves forward, it will be crucial to monitor its asset quality, given the technical write-offs and NPA closures reported this quarter. The company's ability to maintain its growth trajectory while managing credit risks will be key to its long-term success in the competitive financial services sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.70%	-4.41%	-7.88%	-11.06%	-15.97%	+436.69%

Housing and Urban Development Corporation Limited (HUDCO) has taken a significant step towards enhancing urban infrastructure development with the launch of its Urban Invest Window (UiWIN) platform. This innovative initiative aims to provide comprehensive support to Urban Local Bodies (ULBs) in developing bankable infrastructure projects.

Key Features of UiWIN

UiWIN is designed as a one-stop, end-to-end support platform offering four crucial solutions:

Solution	Description
Capacity Building	Enhancing the capabilities of ULBs
Project Formulation and Asset Monetization	Assisting in project planning and maximizing asset value
Access to Financial and Capital Markets	Facilitating funding opportunities for ULBs
Management of Existing Assets	Optimizing the use and performance of current infrastructure

Alignment with HUDCO's Growth Strategy

The launch of UiWIN is not just a standalone initiative but a strategic move aligned with HUDCO's planned business growth. By offering this comprehensive platform, HUDCO aims to strengthen its position in the urban development sector and contribute significantly to the improvement of urban infrastructure across India.

Implications for Urban Development

This initiative has the potential to transform the landscape of urban infrastructure development in India. By providing ULBs with the necessary tools, knowledge, and access to financial resources, UiWIN may accelerate the implementation of crucial urban projects. This could lead to improved living conditions in cities and towns across the country.

Conclusion

HUDCO's launch of the UiWIN platform marks a significant development in the urban infrastructure sector. As this initiative unfolds, it will be interesting to observe its impact on urban development projects and HUDCO's business growth in the coming years.

Investors and stakeholders are advised to monitor future updates from HUDCO regarding the progress and outcomes of this initiative.