Aadhar housing Q2FY25: Solid growth in book driven Retail Home and Mortgage Loans
Company Name: Aadhar Housing Finance Ltd | NSE Code: AADHARHFC | BSE Code: 544176 | 52 Week high/low: 517 / 292 | CMP: INR 458 | Mcap: INR 19,661 Cr | P/B- –
About the stock
➡️Aadhar housing finance Ltd is primarily engaged in the business of providing low income housing finance. They focused on low income housing segment with ticket size of <Rs 15 lakh. Company added 9 new branches in Q2FY25 makes total to 545 branches across pan India.
Aadhar loan book shine backed by both segment home loan and mortgage loan
➡️Aadhar housing’s loan book report double digit growth of 21% YoY (+5% QoQ) to 22,818 Cr led by robust growth across both segment retail home loan and mortgage loan. Retail home loan contribute 74% of overall loan book, growing 18% YoY (+5% QoQ) to 16,991 Cr. while Retail mortgage loan constitute 26% of overall loan book, growing 31%YoY (+6% QoQ) to 5,826 Cr.
➡️Disbursement grew 18% YoY while QoQ boom 36% to 2,036 Cr on healthy growth in both segment. Retail home loan disbursement shine 33% QoQ and 19% YoY to 1,466 Cr while mortgage disbursement jump 43% QoQ and 16% YoY to 570 Cr.
| Book Growth (in Cr) (As on) | Q2FY25 | Q2FY24 | YoY (%) | Q1FY25 | QoQ (%) |
| Loan Book | 22,818 | 18,885 | 21% | 21,726 | 5% |
| R. home loan | 16,991 | 14,449 | 18% | 16,246 | 5% |
| R. mortgage loan | 5,826 | 4,436 | 31% | 5,481 | 6% |
| Disbursement | 2,036 | 1,725 | 18% | 1,497 | 36% |
| R. home loan | 1,466 | 1,233 | 19% | 1,100 | 33% |
| R. mortgage loan | 570 | 492 | 16% | 397 | 43% |
NII supported by book expansion and NIMS (up 32 bps YoY)
➡️Interest income grew 20% YoY (6% QoQ) to 673 Cr driven by robust retail book growth while portfolio yield remain flattish. NII increased 20% YoY (+8% QoQ) to 3,87 Cr attributed to NIMs expansion by 32 bps YoY. PPOP grew 20% YoY (+11% QoQ) to 306 Cr thanks to higher other income and stable other OpEx. Profitability comes in line with topline, grew 15% YoY (+14% QoQ) to 697 Cr due to higher provision expense (up 771% YoY) wile down 29 bps QoQ.
| Years (in Cr) | Q2FY25 | Q2FY24 | YoY (%) | Q1FY25 | QoQ (%) | Commentry |
| Interest income | 673 | 561 | 20% | 634 | 6% | |
| Interest expenses | 285 | 239 | 20% | 277 | 3% | |
| NII | 387 | 322 | 20% | 357 | 8% | expand on book growth and NIMs |
| Other income | 78 | 53 | 47% | 62 | 25% | |
| Total Net income | 466 | 375 | 24% | 420 | 11% | |
| Employee expenses | 101 | 78 | 29% | 95 | 7% | |
| Other OpEx | 59 | 43 | 39% | 49 | 20% | |
| Total Opex | 160 | 121 | 32% | 144 | 11% | |
| PPOP | 306 | 255 | 20% | 276 | 11% | No leverage benefit; in line with NII |
| Provision | 13 | 2 | 771% | 19 | -29% | |
| PBT | 293 | 253 | 16% | 257 | 14% | |
| Tax expenses | 65 | 56 | 17% | 57 | 14% | |
| Tax rate | 22% | 22% | 1% | 22% | 0% | |
| PAT | 228 | 197 | 15% | 200 | 14% | PAT growth on book expansion; leverage muted, provision up |
| PAT% | 30% | 32% | -6% | 29% | 6% | |
| EPS | 5.29 | 5.00 | 6% | 4.69 | 13% | |
| No. of equity shares | 43 | 39 | 9% | 43 | 1% |
Asset quality remain flattish QoQ
➡️Aadhar’s asset quality has maintain on YoY and QoQ basis. GNPA down 10 bps YoY but remains flat QoQ to 1.3% while NNPA remains flat YoY and QoQ at 0.9%. This is due to the banking’s NPA cycle is already at lowest point at this point of time.
| Asset Quality (%) | Q2FY25 | Q2FY24 | YoY (bps) | Q1FY25 | QoQ (bps) |
| GNPA | 1.3 | 1.4 | -10 | 1.3 | 0 |
| NNPA | 0.9 | 0.9 | 0 | 0.9 | 0 |
Valuation and key metrics
➡️Yield on loan remain flat at 14% while CoF jump 40 bps YoY and 10 bps QoQ to 8.1%. This result in expansion in NIMs by 32 bps to 8.94% as of Q2FY25. credit cost remain stable at 2.59% YoY while increased by 22 bps QoQ. This result in decline in spread by 40 bps YoY and 10 bps QoQ to 5.9%. While NIMS jump 32 bps YoY and 20 bps QoQ to 9.1%.
| Key metrics (%) | Q2FY25 | Q2FY24 | YoY (bps) | Q1FY25 | QoQ (bps) |
| Yield | 14 | 14 | 0 | 14 | 0 |
| CoF | 8.1 | 7.7 | 40 | 8 | 10 |
| NIMs | 9.1 | 8.78 | 32 | 8.9 | 20 |
| ROA | 4.4 | 4.6 | -20 | 4.1 | 30 |
| ROE | 15.7 | 20 | -430 | 15.9 | -20 |
| Spread | 5.9 | 6.3 | -40 | 6 | -10 |
The image added is for representation purposes only
