Hudco Q3 Results: Profit Rises 42%, Dividend Of Rs 2.05 Per Share

Housing and Urban Development Corp. posted a rise in its profit and revenue in the third quarter of fiscal 2025.

For the quarter ended December 2024, Hudco's net profit grew 41.6% year-on-year, reaching Rs 735 crore, compared to Rs 519.2 crore in the same period last year. Revenue surged 37% year-on-year, touching Rs 2,760 crore, up from Rs 2,013 crore a year ago.

The company's earnings before interest, taxes, depreciation, and amortisation also saw some improvement, increasing 34.1% to Rs 925 crore from Rs 690 crore in Q3 FY24. The Ebitda margin stood at 33.5%, compared to 34.3% in the previous year.

Hudco also declared a third interim dividend for fiscal 2025. The third interim dividend will be of Rs 2.05 per equity share, which carries a face value of Rs 10 each, according to an exchange filing.

The company has fixed Jan. 30, 2025, as the record date for determining the eligibility of shareholders for payment of an interim dividend.

It also approved the enhancement of the existing borrowing plan for the financial year 2024-25 from Rs 40,000 crore to Rs 55,000 crore, subject to the outstanding borrowings at any given point in time not exceeding the overall borrowing limit approved by the shareholders.

During a press conference on Wednesday, Hudco Chairperson and Managing Director Sanjay Kulshreshtha shared key highlights of the company's third quarter of fiscal 2024-25 performance.

• Financial ratios have shown continuous improvement.

• NPAs dropped to 0.27% year-on-year, compared to 0.44% in the previous year.

• Loan book rose 40% year-on-year to Rs 1.18 lakh crore in the third quarter of fiscal 2024-25.

• The company plans to take loan book to Rs 1.5 lakh crore by fiscal 2025-26.

• NPAs include Rs 2,200 crore worth of projects under NCLT and DRTs. A

  significant portion of NCLT projects is related to the power sector.

• Two to three projects are expected to be resolved in the next quarter.

• Hudco plans to raise $400 million via Japanese yen bonds in Q4, targeting an interest rate of 6-6.1%.

• The company raised $540 million in Japanese Yen in two tranches between April and September.

The board of directors, in its meeting on Wednesday, also approved the proposal to exit from associate company Ind Bank Housing Ltd. The modalities in this regard are yet to be finalised.

Shares of Hudco closed 0.30% lower at Rs 227.46 apiece, compared to a 0.57% rise in the benchmark Nifty 50. The share price has risen by 42.70% in the last 12 months.

Two analysts tracking the company maintain a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 58.7%.