Can Fin Homes Q1 Results Review - Soft Quarter, Execution On Guidance Key: Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Can Fin Homes Ltd. delivered a miss versus our expectation on disbursements, margins, and credit cost. Disbursements were moderate at Rs 18.5 billion (-20% QoQ/-6% YoY), causing further deceleration in loan book growth (up 1.6% QoQ/9.4% YoY). Disbursement volume was impacted by elections and transient issues in key markets of TL and AP. The spread/net interest margin contracted by 13 bps/16 bps on sequential basis with cost of fund rising by 18 bps on account of-material increase in share of NCD borrowings over past Q2s,full-quarter impact of higher-rate CP borrowings during March and further decline in share of low-cost NHB borrowings..Opex was significantly lower versus Q4 FY24 due to absence of one-off/non-recurring cost (Rs 80-90 million), much lower disbursements (80% loans via DSAs) and the usual seasonality in employee cost. 1+ dpd increased by 11% on sequential basis with SMA pool swelling by 10.5% and gross non-performing loans rising by 14%. Such increase in NPLs in the first quarter has been a trend with Can Fin. Credit cost was higher at Rs 245 million (ann. 28 bps) owing to significant increase in delinquent pool. There was no write-off in the quarter, neither there was any utilization of management overlay (Rs 340 million). Return on asset/return on equity for the quarter stood at 2.2%/17.5%..Click on the attachment to read the full report:.Poonawalla Fincorp Q1 Results Review - Earnings Miss Due To NIM Compression; Loan Growth Strong: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Can Fin Homes Q1 Results Review - Soft Quarter, Execution On Guidance Key: Yes Securities

Growth delivery/execution in line with guidance would be key to hold or rerate valuations, says the brokerage.

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Can Fin Homes Q1 Results Review - Soft Quarter, Execution On Guidance Key: Yes Securities

Growth delivery/execution in line with guidance would be key to hold or rerate valuations, says the brokerage.

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