HUDCO's quarterly profit rises to Rs 519.19 crore in October-December 2023

Mumbai, Feb 9 (PTI) Housing and Urban Development Corporation Limited (HUDCO) on Friday reported more than two-fold rise in standalone profit after tax to Rs 519.19 crore in the three months ended December 2023.

The company had posted a standalone Profit After Tax (PAT) of Rs 254.32 crore in the third quarter of the previous fiscal, according to a regulatory filing.

The revenue from operations in the latest December quarter increased 18 per cent to Rs 2,012.66 crore.

In the year-ago period the same stood at Rs 1,708.9 crore.

In a statement, the company said PAT for the April-December period of the current fiscal surged 33 per cent year-on-year to Rs 1,416.58 crore.

During this period, revenue from operations jumped 10 per cent to Rs 5,719.07 crore.

HUDCO attributed the performance to consistent growth in the loan book from Rs 79,290 crore to Rs 84,424 crore year-on-year and a significant reduction in net NPAs from 0.96 per cent to 0.44 per cent during the same period.

The gross NPAs (non-performing assets) significantly reduced to 3.14 per cent year-on-year from 4.27 per cent.

HUDCO Chairman and Managing Director Sanjay Kulshrestha said it is looking at mobilising funds through the External Commercial Borrowing (ECB) route to optimise the cost of borrowings.

Current fiscal budget has laid thrust on housing and infrastructure in a big way and the company is geared up to capitalize on these opportunities, he added.

He also said that HUDCO saw its market cap increasing from Rs 10,000 crore in March, 2023 to over Rs 40,000 crore in December 2023.

The company has already borrowed Rs 12,000 crore from the market and its board has also enhanced the borrowing limits to Rs 35,000 crore from Rs 18,000 crore, he added.

"So definitely our disbursement will also be going up. We had already sanctioned a few things up to around Rs 18,000 crore. Our pipeline is also very strong," he said.

He further said that the company at this stage has set a "very good" (disbursement) target for this fiscal, adding that, "we will be moving away from the trend which were there earlier (the last five years)".

He also said that the company has already disbursed around Rs 7,700 crore and has projects of another Rs 30,000-40,000 crore. PTI IAS SGC HVA