Suresh Srinivasan Iyer, the managing director and chief executive officer (CEO) of Can Fin Homes, said the company had earlier given a guidance of 18 to 20 percent growth in assets under management (AUM). "So we are in line with the AUM target between 18 percent and 20 percent range," Iyer said.
Speaking to CNBC-TV18 on Thursday, he noted that last year also the company had a 18 percent growth in AUM. Iyer further said that the pickup will happen the second half, as the first half of the year is a little subdued compared to the second half.
Can Fin Homes CEO said the net interest margins (NIM), on a sequential basis, have improved during the quarter. He said the company should be able to maintain the NIMs at the current level of 3.4 percent.
Shares of Can Fin Homes settled 1.39 percent higher at Rs 829.65 apiece on Thursday after the company announces its June quarter numbers. The Canara Bank promoted housing loan provider posted a 13.1 percent year-on-year (YoY) rise in net profit at Rs 183.5 crore for Q1.
Net interest income (NII) — the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors — surged 13.9 percent, coming at Rs 285.1 crore against Rs 250.4 crore in the corresponding quarter of last fiscal.
Foreign brokerage Morgan Stanley has an equal weight rating on the housing loan provider. The brokerage said the company's profit beat estimates by 9 percent led by higher NIM and lower operating costs. The NIM expanded 17 basis points QoQ to 3.6 percent. Opex was down 16 percent QoQ.
The company’s gross Non Performing Assets (NPA) was stable year-on-year while provision coverage fell both year-on-year and sequentially, analysts said. Loans rose 18 percent year-on-year and 3 percent quarter-on-quarter.
Meanwhile, Jefferies has a 'Buy' call on the stock, with target price of Rs 850. The brokerage said the June quarter profit was 7 percent ahead of its estimates.
First Published: Jul 20, 2023 7:14 PM IST
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