Highlights for Q3 FY18 ended December 31, 2017 on Y-O-Y basis.
- Asset Under Management (AUM) grew by 29.4% to 1,01,286 crore for the quarter ended December 31, 2017,crossing Rs1 lacs cr mark
- Net profit increased by 25% to Rs. 305.9 crore for the quarter ended December 31, 2017
- Profit before tax rose by 24.2% to Rs. 461.7 crore for the quarter ended December 31, 2017
- Total income rose by 11.5% to Rs. 2,634.2 crore for the quarter ended December 31, 2017
- Gross NPA stood at 0.96 %
- Net Interest Margin stood at 3.03 %
Mumbai, January 22, 2017: DHFL, one of India’s leading housing finance companies, today announced its results for the third quarter ended December 31, 2017. The company registered a net profit growth of 25% to Rs. 305.9 crore for the quarter ended December 31, 2017.
- Assets under Management (AUM) grew by 29.4% y-o-y reaching to Rs 1,01,286 crore for the quarter ended December 31, 2017 from Rs. 78,296 crore in the corresponding quarter of the previous year.
- Loan Book Outstanding grew by 21.8% to Rs 83,962 crore for the quarter ended December 31, 2017.
Commenting on the company’s financial performance in the Quarter ended December 31, 2017, Mr. Kapil Wadhawan, Chairman and Managing Director, DHFL said, “The quarter has been truly significant and a mile stone one for DHFL in taking asset under management over the Rs1 lac crore mark. It is a proud moment for all of us on achieving this distinction while retaining thrust on the low and middle income segment, thus fulfilling our Founder’s dream set 30 years ago of building the Company with a focus on inclusive lending as its core strength.
The disbursement growth of 53.6% amounting to Rs 10,846 cr is yet another significant mark this quarter, which speaks of the momentum gained by the team to harness growth potential in the affordable home segment through close engagement with customers and developers alike. This robust growth, is an outcome of our continued efforts towards expansion strategies to widen financial inclusion across India. DHFL’s Griha Utsavs continue to play a key role in our growth strategy to connect with millions of aspirational home buyers, facilitate access to affordable housing developers and offer customized financial solutions across India. Over the past six months, we organized 23 Griha Utsav exhibitions in tier 2 and 3 locations to provide the LMI segment, easy access to affordable finance and housing options. We are actively leveraging our extensive distribution network across 350 locations in India – one of the largest in the industry, to ensure higher productivity, performance and loan disbursements from each center. We are also leveraging technology to strengthen our operating efficiencies, enrich our customer experience and expand outreach specifically to the target LMI group in Tier 2 and 3 towns. Through aggressive efforts to promote financial awareness to drive the CLSS scheme and unique initiatives like Griha Utsav, DHFL continues to play an active role to realize the Government’s vision of ‘Housing for All’ by 2022.
While 2017 has laid the foundation for a growth-oriented ecosystem for the Affordable Housing sector, 2018-19 holds stronger potential for greater progress. With strong business fundamentals and core organizational growth drivers in place, DHFL is well placed to capitalize on industry opportunities and is committed to its mission to bring transformational changes in the lives of its customers.”
Performance Details for the quarter ended December 31, 2017 as compared to the corresponding quarter of the previous year:
- Net profit increased by 25% to Rs.305.9 crore for the quarter ended December 31, 2017 as against Rs.244.8 crore in the corresponding quarter of the previous year
- before tax rose by 24.2% to Rs.461.7 crore for the quarter ended December 31, 2017 as against Rs.371.7 crore in the corresponding quarter of the previous year
- Loan book outstanding grew by 21.8% to Rs.83,962 crore during the quarter ended December 31, 2017 as against Rs.68,961 crore in the corresponding quarter of the previous year
- Loan disbursements and sanctions were Rs.10,846 crore and Rs.16,552 crore, respectively for the quarter ended December 31, 2017, showing an increase of 53.6% and 75% respectively, over the corresponding period of the previous year
- Total Income was up by 11.5 % to Rs. 2,643.2 crore during the quarter ended December 31, 2017 as against Rs.2,362.6 crore in the corresponding quarter of the previous year
- Gross NPA stood at 0.96 % amounting to Rs. 806 crore
- Net Interest Margin stood at 3.03 %
DHFL’s average loan ticket size at the portfolio level stands at Rs.14.5 lakhs. DHFL 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.
Key highlights
- Acknowledged as the ‘Best Performing Primary Lending Institution under CLSS for MIG’ for disbursement under PMAY scheme – With the objective of facilitating the government’s mission ‘Housing for All by 2020’, DHFL has provided highest number of credit subsidies for MIG 1 and MIG 2 groups under the Credit Link Subsidy Scheme (CLSS). For this achievement ‘My Liveable City’ along with knowledge partner, ‘National Housing Bank’ have felicitated DHFL as the ‘Best Performing Primary Lending Institution under CLSS for MIG.
- Fund raising through Medium Term Note (MTN) – DHFL will be raising funds not exceeding USD 2 billion, in one or more tranches, over the next few quarters pursuant to the provision of the applicable laws and approval of the Reserve Bank of India (RBI) (“Overseas Bond Issue”) subject to market conditions over the next few quarters post the approval of Reserve Bank of India. Funds will be deployed for business expansion and is a step towards diversifying the borrowing portfolio thereby reducing the cost of funds. The notes shall be listed on Singapore Exchange Securities Trading Limited or such other stock exchanges.
Union Budget Recommendations 2018
While the Housing Industry is accelerating its efforts towards realizing the Government’s vision of ‘Housing for All by 2022’, we anticipate continued vigor and thrust to the Housing Finance industry through several positive amendments in the Union Budget 2018:
- To encourage Indians to buy their dream home through affordable Housing Finance, we propose that exclusive tax exemption benefit be extended to those availing housing finance to buy a home Deduction for repayment of housing loan principal be carved out of section 80C, to a separate section with an independent limit extended to Rs. 2,00,000 from the current allocation of Rs. 150,000/- which is includes many other eligible investments.
- Deduction, similar to term deposit u/s 80C(xxi), is made available in respect of any deposit placed with a HFC registered with NHB to encourage more consumers to consider HFCs for deposits and thus boost the Housing, infrastructure and ancillary industries.
- Withdrawal of MAT liability u/s. 115JB for Banks and HFCs, thus reducing the direct tax rate and making the interest rates more competitive and affordable to consumers.
- Tax Incentives (similar to section 10A, 10AA) to Banks and NBFCs lending extensively in Tier II & III cities by increasing depreciation cap for maintenance of systems and controls
Awards & Recognition
- Kapil Wadhawan awarded the Best Leader In Financial Services by Business Today
DHFL’s Chairman and Managing Director, Kapil Wadhawan was awarded the title of Best CEO in the Financial Services category by Business Today, at their flagship event BT MindRush on January 13, 2018. Mr. Wadhawan was unanimously chosen by a high-powered jury, based on a rigorous evaluation of DHFL’s performance under his leadership over the past three decades. A quantitative and qualitative assessment of the group’s total stakeholder returns, revenue and profit growth was conducted to arrive at this decision.
DHFL
DHFL was founded in 1984 by Late Shri Rajesh Kumar Wadhawan with a vision to provide financial access for Indians to own a home of their own. Today, led by Mr. Kapil Wadhawan, CMD, DHFL, the company is CARE AAA rated and reckoned as one of India’s leading financial institutions with a large presence across the country, in addition to representative offices in Dubai and London.
Throughout its years of growth, DHFL has stayed true to its core vision of financial inclusion, especially to the low and middle income customers across India. The company’s wide network, coupled with insights into local customer needs, has enabled the company to provide meaningful financial access to customers even in India’s smallest towns. With a strong business foundation, an extensive distribution network, proven industry expertise and a deep understanding of the Indian customer, DHFL is a respected and trusted financial services company in India with a concerted focus towards enabling home ownership to the low and middle income customer. For further information, please visit www.dhfl.com.
Wadhawan Global Capital Pvt. Ltd (WGC)
Wadhawan Global Capital Private Limited (WGC) is a leading financial services group in India. WGC manages over US$ 19 billion of assets through its lending, investment and insurance platforms. WGC has partnered with leading financial institutions such as International Finance Corporation (IFC), Washington, Prudential Financial Inc., United States. WGC is the promoter entity of Dewan Housing Finance Corporation Limited (DHFL) and parent company to some of the most prominent brands in India. Its flagship company, DHFL is a market leader with over three decades of experience in financing affordable housing. Other Notable brands owned by WGC are Aadhar Housing Finance, Avanse Financial Services, and DHFL General Insurance. The company also has a London-based wholly-owned subsidiary Wadhawan Global Capital (UK) Ltd.
For more information, please visit www.wgcworld.com
