Highlights:

There has been consistent growth in AUM to Rs 24000 crore, which is 21% yoy growth driven by prudent and proactive strategies.

The company retains its position as one of India''s leading low-income housing finance company.

Disbursements stood strong at Rs 2094 crore in Q3FY2025, a significant growth of 20% on yoy basis.

As a part of branch expansion strategy, the company has opened 12 branches in Q3FY2025 and 34 branches in 9MFY2025.

The company continues to invest and develop its digital strategy with significant investment in information technology and data analytics. Entire onboardings are happening paperless on mobility solutions. All these interventions have helped and will further help improve efficiency and productivity.

The data analytics team is at the forefront to ensure various analytic projects

The company continues to have 100% focus on retail secured loans with no exposures to corporates or developers.

GNPA witnessed a drop of 4 bps to 1.36% with a stable collection efficiency of 98-99%.

Average ticket size stands at Rs 10 lakhs with an average loan-to-value ratio of 59%, with salaried customer segment contributing 56% of the portfolio.

At present, home loans represent a significant portion of portfolio in comparison to other mortgage loans, contributing 74% and 26%, respectively.

The company serves more than 2.86 lakh live customer base across the country. None of the states is higher than 14% of AUM exposure.

The company continues to focus on geographical expansion and strengthen market presence. The company has further strengthened the senior management team.

The improving macroeconomic landscape is driving the housing finance industry towards a projected growth of 16% to 17% over FY25 and FY26. A significant portion of this growth is expected to come from the affordable housing segment, which is estimated to achieve a robust 22-23% CAGR over the next 2 years.

The recent budget announcements have been very positive for the affordable housing finance segment, like the income tax exemption up to an income of 12 lakh per annum is set to boost the purchasing power of LMI and EWS, driving increased demand for housing loans.

Additionally, the government''s allocation of Rs 15000 crore to the SWAMIH Fund 2.0, along with commitments to complete over 90,000 housing units will help resolve stalled projects, restore buyer confidence and create new lending opportunities.

Moreover, the budget allocation under PMAY will further enhance affordability initiatives, benefiting affordable housing finance companies that primarily serve the low and middle-income borrowers.

The mortgage guarantee scheme has also been notified by the central government, specifically targeting the EWS, LIG segment.

The overall borrowings stood at Rs 15135 crore end December 2024, up 15% compared to Rs 13128 crore at end December 2023. The borrowing mix - 51% from banks, 25% from NHB and NCDs make up for the balance 24%. Incremental borrowing for Q3FY2025 stood at Rs 1178 crore, which has come in at a Cost of Funds (COF) of 8.28%.

The company has drawn Rs 378 crore from NHB in Q3FY25, of which the affordable housing finance fund is around 20-22% of this borrowing, and this has come in at a blended rate of 7.8%.

The cost of funds Q3FY25 stood at 8.1%.

In terms of the fixed and floating nature of the book, 79% of borrowing is floating and 77% of assets are floating.

The undrawn sanctions are Rs 1100 crore. Liquidity for the quarter end stood at Rs 2100 crore which is around 10.5% of the loan asset book.

Portfolio yield was at 13.9% in Q3FY25. The spreads come in at 5.8% and the company expects to end the year in the range of around 5.7% to 5.75% levels.

Cost to income stood at 34.8% in Q3FY2025 as compared to 35.4% in Q3FY24. The company aims to drop cost to income by at least 100 bps in FY2025 and its well on course for that.

Provision coverage of Stage 3 stands currently at around 36%.

Capital adequacy ratio for Q3FY2025 stood at 45.5% for Tier 1 and 0.6% for Tier 2.

The quarter 4 of the financial year is a very strong quarter. So the company expects a good improvement from the credit cost and overall NPA number of 1.36% would improve to 1.1% by end March 2025.

The company believes credit cost would be in the range of 25-27 bps for FY25 and FY26.

The company has a 100% secured retail book. The company has no exposures to personal loans, unsecured loans etc.

The customers having exposure to MFI loans is at 8780 of which 707 customers are delinquent in various buckets.

From a 2-3 years perspective, the company would grow disbursements at 18-20%, leading to AUM growth of 22-24%.

The fee income would be in the range of around 2-2.1% on a sustainable basis. The company had specifically taken some one-offs on processing fee and admin fee in Q3FY2025 leading to lesser fee income of Rs 7-8 crore.

The BT out on annualized basis was 6.3% down from 6.7%. The company aims to reduce it to 5.5%.

The disbursement yield was 13.6% in Q3FY25 and 13.54% for 9MFY2025.

Home loan yield is 12.36% and non-home loan stands at 16.5% for 9MFY2025.

Liabilities linked to 1 year MCLR is about 30%, 6 months MCLR is about 36%, and 3 months MCLR is 17% and balance is a combination of others.

On the asset side, the non-home loan book would be fixed. All assets are linked to RPLR, the base of which is predominantly the incremental cost of funds.

The company already added 34 branches and looks to add 55 branches for FY2025 and similar numbers in the coming year.

AUM for purchase of house is about 45%, self-construction is about 25%, plot plus construction is about 6%, LAP is about 24%. About 64% of AUM come from Tier 1, 23-24% from Tier 2 and the balance will come from Tier 3 and below.