Highlights for Financial Year ended March 31, 2018
Pune, April 30, 2018: DHFL, one of India’s leading housing finance company, today announced its annual results for the year ended March 31, 2018. The company registered a net profit growth of 26 % to Rs 1,172.1 crore for the year ended March 31, 2018.
Assets Under Management (AUM) grew by 33% year-on-year, reaching Rs 111,086 crore from Rs 83,560 crore as on March 31, 2018.
Commenting on the company’s financial performance, Mr. Kapil Wadhawan, Chairman and Managing Director, DHFL said, “DHFL has registered robust business growth in the fourth quarter as we continue to take several proactive steps towards the fulfillment of DHFL’s mission to enable homeownership. On an overall basis FY 2017 -18 has been encouraging for the housing finance sector which witnessed several growth oriented initiatives and industry defining policy measures undertaken by the government.
DHFL’s focus is towards maintaining its leadership in an exciting landscape, leveraging its competitive strengths and expanding customer outreach strategies in Tier 2 /3 towns through unique initiatives like the Griha Utsav exhibitions. With the team’s unwavering commitment we are confident of reporting a stronger performance.
On the portfolio diversification side, DHFL has for the first time successfully raised USD 150 million by issuing masala bonds on the London Stock Exchange, making it’s debut listing in the international market. This provides greater impetus to our growth strategy, while allowing international investors to participate in the high potential affordable housing story in India.
DHFL’s mission is to engender socio-economic change across India. Supported by our strategic expansion initiatives, DHFL is taking committed steps in expanding financial literacy actively across India, which is key to India achieving its mission of Housing For All by 2022.”
Performance Details for the year ended March 31, 2018 as compared to the corresponding period of the previous year
Performance Details for the quarter ended March 31, 2018 as compared to the corresponding period of the previous year:
DHFL holds leadership position in the affordable housing sector with majority of its home loan portfolio catering to the Lower and Middle Income (LMI) segment. DHFL’s average loan ticket size at the portfolio level stands at Rs. 15.2 lakhs. DHFL’s robust performance continues to be driven by its’s strong focus on the LMI segment in Tier 2 and 3 markets. The company offers a range of home loan products including home loan, home extension loan, home improvement loan, plot loans, mortgage loan, project loan, SME Loan and non-residential property loan to all customer segments across India, retaining its concerted focus on the low and middle income segment.
DHFL is today one of India’s leading housing finance companies reporting steady growth year-on-year. It also has one of the largest distribution networks in the country, across 349 locations spanning metros, Tier 2 and3 towns. With the help of such penetration, in-depth consumer insights, localized talent, focused marketing and sales initiatives, DHFL has been providing meaningful financial access to customers. To further expand customer outreach, DHFL also partners with public and private sector banks
Awards & Recognition
India’s Affordable Housing Finance Landscape
According to India Ratings as of June 2017, the AUM of the affordable housing sector was around Rs 1.5 trillion and is expected to increase four times to Rs 6 trillion by FY22. An overall positivity propelled by a combination of factors, is expected to push growth in the housing finance industry over the long term. Increased government support to developers as well as buyers augurs well for the industry.
The Real Estate Regulation Act (RERA) has significantly boosted transparency to infuse more dynamism into the sector. The government’s efforts to incentivise the housing finance industry, coupled with greater transparency in the sector, continues to provide an upward thrust to the housing finance market, with CRISIL Research forecasting finance penetration in urban areas to increase between FY 2016-17 and FY 2021-22.
Amongst the government initiatives expected to steer industry growth are the credit-linked subsidy scheme (in terms of interest rate subsidy, under the Pradhan Mantri Awas Yojana (PMAY), and grant of infra status to affordable housing. The government is continuously strengthening its focus on its ‘Housing for All by 2020’ Mission, with the Union Budget for FY2017-18 once again allocating a sizeable corpus for the same. The government’s decision to establish a dedicated affordable housing fund in the National Housing Bank (NHB) through various funding measures is another positive development.
The RBI is also contributing to the industry’s positive outlook with a series of measures, as announced in its June 2017 Monetary Policy. These include reduction in standard assets provisioning, conditional relaxation of risk-weights, singular taxation structure of Goods & Services Tax and loan-to-value (LTV) ratios. Other favourable factors for businesses are the waning impact of demonetisation, low interest rates and rising income levels, coupled with government and RBI initiatives to support growth. The retail housing finance outstanding loan portfolio is projected to expand at 18-20% CAGR, from Rs. 14.3 trillion in FY 2016-17 to Rs. 33.5 trillion in FY 2021-22.
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Copyright © 2014 - 2022 The Global Indian New Network (TGINN)