PNB Housing Finance Q1FY24 Net Profit Soars 47.8% To Rs 347.32 Cr

PNB Housing Finance reported an impressive 47.8 per cent year-on-year (YoY) increase in its consolidated net profit after tax for the first quarter ended June (Q1FY24), reaching Rs 347.32 crore. This significant growth was backed by an increase in net interest income, improvement in interest margins, and enhanced asset quality.

Compared to the year-ago period's profit of Rs 234.96 crore, the housing finance company witnessed substantial growth. Sequentially, the consolidated net profit rose by 24.4 per cent from Rs 279.28 crore in Q4FY23.

PNB Housing Finance's consolidated total revenue from operations also displayed notable growth, rising by 21 per cent YoY to Rs 1,707.63 crores during Q1FY24. Total income stood at Rs 1,707.72 crore for the first quarter, compared to Rs 1,411.99 crore in the year-ago period.

The company's net interest income increased by an impressive 70 per cent YoY and 6 per cent QoQ to Rs 629 crore in the quarter ending in June. Additionally, operating expenditure grew by 26 per cent YoY and 5 per cent QoQ to Rs 150 crore during Q1FY24. Pre-provision operating profit increased to Rs 507 crore, marking a growth of 41 per cent YoY and 4 per cent QoQ.

The spread on loans for Q1FY24 was 2.62 per cent, compared to 1.42 per cent in Q1 FY23 and 2.65 per cent in Q4 FY23. The Net Interest Margin (NIM) and Gross Margin, net of Acquisition Cost, were 3.86 per cent and 3.91 per cent, respectively.

Disbursements for the first quarter of FY24 increased by 7 per cent YoY to Rs 3,686 crore, with retail disbursements growing by 8 per cent YoY to Rs 3,667 crore.

As of 30 June, the Asset Under Management (AUM) expanded by 2 per cent YoY to Rs 67,340 crore, while the Loan Asset grew by 5 per cent YoY and 2 per cent QoQ to Rs 60,395 crore. Gross non-performing assets stood at 3.76 per cent as of 30 June 2023, compared to 6.35 per cent on 30 June 2022, and 3.83 per cent on 31 March 2023.

PNB Housing Finance successfully completed its Rs 2,493.76 crore rights issue in May 2023, with significant participation from major shareholders and other institutional investors. The proceeds from the Rights Issue are being utilised to fuel the company's strategic growth plans and capitalise on available market opportunities.

Girish Kousgi, Managing Director & CEO of PNB Housing Finance, expressed optimism about the real estate demand and the company's strategic objectives. With the successful completion of the Rights Issue, the company is well-equipped to accelerate its growth journey.

On the technical front, PNB Housing Finance's stock price has seen strong traction, rising by 89.3 per cent in the past year, outperforming its sector by 58.2 per cent. Analysts suggest that the stock is in an uptrend and expect further up move, but buying on dips is advised due to overbought indicators. Support is seen at 630, while resistance is at 720.