Housing and Urban Development (HUDCO) Q4 04/05 earnings summary

Executive summary

• FY05 profit before tax rose to Rs 711.12 crore from Rs 394.50 crore, after prior-period adjustments and a Rs 98.25 crore principal provision for loans that became NPAs.

• Mini-Ratna Category I status brought greater operating flexibility, including authority to establish joint ventures and pursue strategic alliances.

• Sanctions reached Rs 13,862 crore and releases Rs 5,921 crore across housing and urban infrastructure.

Financial highlights

• Total income was Rs 2,777.19 crore versus Rs 2,744.12 crore; total expenditure was Rs 2,066.07 crore versus Rs 2,349.63 crore.

• Profit after tax was Rs 399.59 crore versus Rs 325.70 crore; reported EPS rose to Rs 201.56 from Rs 183.32.

• Reserves and surplus closed at Rs 1,407.87 crore; the Board recommended total dividend of Rs 80.71 crore, including Rs 37.03 crore interim dividend already paid.

Outlook and guidance

• FY06 MoU targets Rs 12,600 crore in loan sanctions and Rs 6,300 crore in releases for housing and urban infrastructure.

• Vision for 2012 emphasizes market leadership, wider market coverage, public-private participation, related services and continued social commitments.

• Expansion priorities include infrastructure lending, retail finance, fee-based consultancy, take-out financing, real estate and joint ventures.