Can Fin Homes (CANFINHOME) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 disbursements declined 6% year-over-year due to election-related slowdown, but June was the second-best month in 15 months.

• Loan book reached ₹35,557 Cr in Q1FY25, up 9% year-over-year, with 2.62 lakh clients.

• Net Interest Income grew 12% YoY to ₹320 Cr; PAT rose 9% YoY to ₹200 Cr.

• Board approved unaudited financial results for the quarter ended June 30, 2024, following review by the Audit Committee and statutory auditors.

• Focus remains on growth, asset quality, profitability, and digital transformation.

Financial highlights

• Disbursements for Q1FY25 were ₹1,853 Cr, down 6% YoY; new approvals declined 5% YoY.

• NIM at 3.57%, ROAA at 2.17%, ROE at 17.57%, and EPS at ₹14.99 for Q1FY25.

• Gross NPA at 0.91%, Net NPA at 0.49%; provision coverage ratio (with overlay) at 73%.

• Total income from operations for Q1 FY25 was ₹93,112.90 lakhs, up from ₹81,808.67 lakhs in Q1 FY24.

• Cost-to-income ratio improved to 14.87%; DER at 7.14.

Outlook and guidance

• FY25 disbursement target is INR 10,500 crore, with net loan book addition of INR 5,500 crore and 15% AUM growth.

• Spread guidance at 2.5%+ and NIM at 3.5% for FY25.

• Final dividend of ₹4 per equity share (face value ₹2) recommended, subject to shareholder approval.

• Upgrades to loan origination and management systems expected to go live in Q2FY25.

• Continued emphasis on digitalization, compliance, and risk management.