Aadhar Housing Finance Targets 23% AUM Growth In Next 18 Months

Aadhar Housing Finance Ltd. will grow its assets under management by up to 23% in the next 18 months, in line with previous guidance, Chief Executive Officer and Managing Director Rishi Anand has said.

In the quarter ended Sept. 30, Aadhar Housing Finance’s AUM stood at Rs 22,817.50 crore, as compared to Rs 18,885 crore in the year-ago period, indicating a growth of 21%.

Anand told NDTV Profit in an interview that the company will increase its assets under management in a similar range going forward.

“As regards guidance on growth, we've always maintained the stand that on incremental disbursement, that is fresh disbursement for the year, we will grow at the rate of about 18% to 30%, which will then amount to about 22% to 23% growth on AUM,” he said.

The top executive also noted that his company would not be impacted by possible fluctuations in the real estate space, since Aadhar Housing Finance caters to consumers who are not affected by large developers.

“These are consumers who would buy individual houses and small houses on resale and do more self-construction on the outskirts of larger cities or small talukas and small districts. So, for them, if the real estate construction is lopsided, it hardly matters,” Anand explained.

He highlighted that Aadhar Housing Finance’s immunity to fluctuation in big real estate companies is particularly reflected in the financial numbers.

“It is reflected in the numbers of the various housing finance companies like us who deal in this space. For example, our AUM every quarter has touched about 21% growth YoY, with growth in disbursements of about 18-19%. So those numbers speak for themselves,” he said.

Shares of Aadhar Housing Finance Company were trading 1.08% higher at Rs 469.10 apiece on the NSE at 9:37 a.m. on Friday. Meanwhile, the benchmark index Nifty 50 was 0.18% down at 24,155.10.