Can Fin Homes (CANFINHOME) Q2 24/25 earnings summary

Executive summary

• Disbursements grew 28% sequentially and 18% year-over-year, with the loan book reaching Rs. 36,591 Cr in Q2FY25 and 2.73 lakh clients; growth was broad-based except in Telangana due to local issues.

• Net Interest Income for Q2FY25 was Rs. 340 Cr; PAT stood at Rs. 211 Cr, up from Rs. 158 Cr in Q2FY24, with a focus on growth, asset quality, profitability, and digital transformation.

• Portfolio yield held steady at 10.12%, supported by a higher share of self-employed segment lending; 71% of the loan book is to salaried and professionals, and housing loans form 87% of the portfolio.

• Un-audited financial results for Q2 and H1 FY25 were approved, showing strong growth in income and profitability year-over-year.

• Board authorized issuance of up to ₹4,000 crore in NCDs via private placement, as approved in the last AGM.

Financial highlights

• Q2FY25 NIM at 3.75%, ROAA at 2.29%, ROE at 17.99%, and spread improved by 2 bps; guidance maintained at 2.5%+ spread and 3.5%+ NIM.

• Gross NPA at 0.88%, Net NPA at 0.47%, with credit cost reduced and Stage 3 provisioning down; cost to income ratio improved to 17.10%.

• H1FY25 PAT grew 36% year-over-year to Rs. 411 Cr; PBT up 35% to Rs. 529 Cr; EPS for H1FY25 at Rs. 30.88, up from Rs. 25.65 in H1FY24.

• OpEx rose due to promotions, actuarial valuation, legal, and marketing costs; cost to income ratio expected at 16-16.5% for FY25, rising to 17-18% post-IT upgrade.

• Net worth as of March 31, 2024, was ₹4,34,385.30 lakh; CRAR at 24.56%.

Outlook and guidance

• AUM growth targeted at 13-14% for FY25, with 15-17% targeted for FY26; disbursements expected to exceed ₹10,000 crore for FY25.

• Board approved further fund raising through NCDs up to ₹4,000 crore, indicating plans for continued growth and expansion.

• Upgrade of LOS and LMS platforms to go live in Q3FY25, with major IT transformation project underway.

• Credit cost guidance maintained at 10-12 bps for FY26; no deterioration expected in spreads or NIMs.

• Continued emphasis on digitalization, customer service, and compliance.