Housing and Urban Development (HUDCO) Q4 05/06 earnings summary

Executive summary

• FY 2005-06 profit after tax was Rs. 260.24 crore; loan and infrastructure sanctions reached Rs. 10,099 crore, with Rs. 3,767 crore released.

• Housing and urban infrastructure remained the core focus, with priority lending, urban services and support for weaker sections featuring in operating plans.

Financial highlights

• Profit before tax was Rs. 382.11 crore after prior-period adjustments and an Rs. 80.34 crore principal provision for loans becoming NPAs, versus Rs. 711.12 crore in FY 2004-05.

• Profit after tax was Rs. 260.24 crore after Rs. 142.70 crore of income, wealth and fringe-benefit tax provisions and net deferred-tax adjustments.

• Income from loans, investments, deposits and other sources was Rs. 22,973,227 thousand, versus Rs. 27,688,058 thousand; total income was Rs. 22,987,746 thousand, versus Rs. 27,719,877 thousand.

• Interest and financial charges were Rs. 16,715,065 thousand, versus Rs. 17,669,561 thousand; provisions on loans, debtors, recoverables and other advances were Rs. 849,342 thousand.

Outlook and guidance

• FY 2006-07 resource mobilization of Rs. 9,000 crore was approved; net incremental borrowings were expected at Rs. 6,500 crore to meet loan-release targets.

• Borrowings were projected at Rs. 27,750 crore by 31 March 2007, within the then Rs. 30,000 crore shareholder limit; management sought to raise the ceiling to Rs. 40,000 crore for future borrowing capacity.

• Proposed Delhi development plans included Rs. 33,000 crore for Yamuna waterfront and Commonwealth Games infrastructure, and a Rs. 30,000 crore wasteland-development proposal covering 12,000 acres.

• JNNURM created a platform for city infrastructure, governance and basic services for urban poor; project appraisal and state/local-body funding proposals were expected to support activity.