Can Fin Homes reports 26% rise in Q4 PAT, disbursements fall 9%

Shares of Can Fin Homes rose over 2% on Monday after the firm announced a 26% year-on-year (YoY) rise in its fourth quarter net profit at ₹209 crore.

Net interest income, the difference between interest earned and interest expended, rose 25.67% YoY to ₹328 crore during the quarter. Disbursements fell nearly 9% to ₹2,314 crore. The lender registered a 22.52% YoY rise in its operating profit at ₹272 crore during the quarter.

The gross non-performing assets (NPAs) ratio rose to 0.82% during the quarter as compared to 0.55% in the same period a year ago while the net NPAs rose to 0.42% versus 0.26% in Q4FY23.

For the fiscal year 2024, Can Fin Homes registered a 21% YoY increase in its net profits at ₹751 crore. The bank’s net interest margin improved to 3.73% compared to 3.45% in the previous fiscal. Disbursements fell 8% YoY during the year to ₹8,177 crore as compared to ₹8,947 crore in the previous fiscal.

The loan portfolio, as of March 2024, increased by 11% to ₹34,999 crore as against ₹31,563 crore in the previous year. The lender said that 78% of the loan book are housing loans while 22% are non-housing loans. Can Fin Homes’ liquidity coverage ratio as of March 31, 2024, stood at 122% as against the stipulated ratio of 70%.

The firm said that documented undrawn bank lines stood at ₹5,814 crore as of March 31, 2024. This along with internal accruals will take care of business commitments for the next three months, it said.

The board of directors has proposed a final dividend of ₹4 per equity share. Including the interim dividend of ₹2 per equity share announced in December 2023, the total dividend proposed/paid for the year stands at ₹6, the firm stated.

Shares of the company have lost over 4% since the beginning of the year. The stock has gained over 18% in the last one year.