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.

• AUM growth improved to 10% YoY, with guidance to reach 13-14% by year-end and a focus on digital transformation.

• Portfolio yield held steady at 10.12%, with 71% of the loan book to salaried/professionals and housing loans forming 87% of the portfolio.

• Asset quality remains strong, with gross NPA at 0.88%, net NPA at 0.47%, and improved collections in restructured and SENP segments.

• Telangana remains a challenging geography due to regulatory and sentiment issues, while Andhra Pradesh and other geographies show growth.

Financial highlights

• Q2FY25 NIM at 3.75%, spread at 2.56%, ROAA at 2.29%, and ROE at 17.99%; guidance maintained at 2.5%+ spread and 3.5%+ NIM.

• Cost of borrowing at 7.56% in Q2FY25, with NHB refinance sanction at lower cost expected to aid Q3.

• OpEx rose due to promotions, actuarial valuation (₹3 crore), legal (SARFAESI, ₹1 crore), and marketing costs (₹0.8-0.9 crore).

• Cost-to-income ratio improved to 17.10% in Q2FY25, expected at 16-16.5% for FY25, rising to 17-18% post-IT upgrade.

• H1FY25 PAT grew 36% YoY to Rs. 411 Cr; EPS for H1FY25 at Rs. 30.88, up from Rs. 25.65 in H1FY24.

Outlook and guidance

• AUM growth targeted at 13-14% for FY25 and 15-17% for FY26, with continued emphasis on digitalization and customer service.

• Disbursement momentum expected to be stronger in H2, following historical trends.

• No deterioration expected in spreads or NIMs; liability repricing to drive margin improvement.

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