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Axis Securities Report
Can Fin Homes Ltd.'s disbursement de-grew by ~9% YoY but grew by ~23% QoQ. Assets under management growth was slowest in 11 quarters, registering a growth of ~11/3% YoY/QoQ.
Slower operating performance was on the back of process revamping and upgrades. The share of salaried customers remained steady at ~72%.
Can Fin Homes will focus on pursuing growth in the SE&P segment while maintaining a mix of salaried and SE&P at 70:30.
Net interest income grew by 25% YoY, flat QoQ. Margins (calc.) are likely to have contracted by 10bps QoQ. Non-interest income grew by 31% YoY. Opex growth elevated to 39/46% YoY/QoQ, taking the cost-income ratio to 20.9% from 18.9/14.7% YoY/QoQ. Pre-provision operating profit growth was weak and degrew by 5% QoQ. Provisions came in significantly lower at Rs 2 crore (~2 bps versus 31/37 bps YoY/QoQ).
Thus, profit after tax was in line with our expectations and grew by 26/4% YoY/QoQ. Gross non-performing asset/net non-performing asset improved to 0.82/0.42% versus 0.91/0.49% QoQ.
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