CANF net profit at Rs.162.21Cr. in Q1FY23.
Can Fin Homes Ltd. (CANF) declared its result on July 21st, 2022 for Q1 FY23. The company reported total revenue of Rs. 611.58 Cr. compared to Rs. 561.29 Cr. in the previous quarter. The net profit jumped to Rs. 162.21 Cr. for Q1 FY23, up by 31.96% QoQ.
The loan book reached Rs. 27538 Cr. with a clientele base of 2.15 lakhs, up by 24% in the current quarter YOY. The disbursements in Q1 stood at Rs. 1722 Cr. compared to Rs. 2705 Cr. in March 2022. In the June quarter, NII increased by 5.5% to Rs. 250.40 cr. The Net Interest Margin (NIM) decreased to 3.60% in June 2022 from 4.07% in the previous quarter. The average business was reduced by 0.63 bps to Rs. 146.48 crores per branch (vs. 147.11 crores on March 22). The cost/income ratio tanked from 19.84% to 15.84% in Q1 FY23 QOQ. The asset quality declined as GNPA increased by 5.39% and was recorded at Rs. 179.78Cr. this was Rs. 170.59Cr. on March 22. The NNPA was at Rs. 81.94 crores, or 0.30%. An increase in the cost of borrowing was witnessed at 5.80% on June 22 versus 5.66% in June 2021 and 5.56% in March 22, due to the hike in the interest rates by the RBI. The EPS was at Rs. 12.18 on June 22, compared to Rs. 9.23 on March 22 and Rs. 8.17 on June 21.
The average ticket size for incremental housing loans was Rs. 21 lakhs and for non-housing loans was Rs. 9 lakhs. The salaried and professional segments constitute around 74% of the O/S loan book. Housing loans were 90%, while non-housing loans were 10%.
CANF has better-quality assets among its peers, but we remain observant of seasonality in the portfolio that could lead to higher credit costs. They have achieved strong growth in the loan book and we expect a minimal spread/margin compression over the next few years. Though housing companies continue to face headwinds because of current macroeconomic situations, the NBFCs’ ability to maintain adequate liquidity, control asset quality, and diversification remains the key differentiator. With the continued growth in the loan book, CANF will witness robust growth. But due to the hike in interest rates, the NBFC will have weak demand for housing among the salaried, non-professional and self-employed classes. However, the expenses will go up due to aggressive branch expansion plans and operational costs. The NBFC has consistently increased its reserves and surplus to come out of uncertainty, which amounted to Rs. 3,040 Cr. in March 2022.
The stock is currently trading at Rs. 552, up by 11.25 points or 2.09%. It touched an intraday high of Rs.590 and a low of Rs.540. The 52-week high for the share price was at Rs.722, and the 52-week low was recorded at Rs.407
