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Dewan Housing Finance Corporation Ltd (DHFL) reported a 18 per cent increase in net profit in the quarter ended June 30, 2015, on the back of continued demand for home loans in Tier-II and Tier-III cities and improved margins.
The housing finance company reported a net profit of ₹173 crore compared with ₹147 crore in the year-ago period.
In the reporting quarter, DHFL clocked 16 per cent increase in total income at ₹1,653 crore (₹1,426 crore in the year-ago period). Total expenditure also increased by 16 per cent at ₹1,392 crore (₹1,203 crore).
The company reported 33 per cent increase in loan sanctions at ₹7,858 crore (₹5,913 crore). Loan disbursements were up 14 per cent at ₹4,938 crore (₹4,349 crore).
Kapil Wadhawan, Chairman and Managing Director, attributed the profitability to DHFL’s focus on lending to the low- and middle-income segments in Tier-II and Tier-III cities. The average ticket size of home loans was less than ₹15 lakh, he added.
DHFL reported an improvement in net interest margin at 2.96 per cent as against 2.78 per cent in the year-ago quarter, said Wadhawan.
Year-on-year the average assets under management increased by 30 per cent to ₹60,000 crore (₹46,000 crore). Almost 80 per cent of the AUM is accounted for by home loans and the balance by loan against property and loans to small and medium enterprises.
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