Housing and Urban Development (HUDCO) Q4 09/10 earnings summary

Executive summary

• FY10 delivered record reported net profit of Rs 495.31 crore, while loan sanctions rose to Rs 16,624 crore from Rs 14,754 crore in FY09.

• Operations centered on affordable housing and urban infrastructure, with 94% of more than 14 million supported housing units benefiting EWS/LIG households.

Financial highlights

• Reported net profit was Rs 495.31 crore versus Rs 400.99 crore YoY; EPS rose to Rs 247.42 from Rs 200.30.

• Profit before tax after prior-period adjustments was Rs 785.82 crore versus Rs 656.50 crore; reserves and surplus reached Rs 3,095.19 crore.

• Total income was Rs 25,283.49 crore versus Rs 27,131.80 crore; total expenditure fell to Rs 17,434.00 crore from Rs 19,024.50 crore.

• Auditor-indicated profit would have been Rs 1,109.41 crore absent the Rs 600 crore additional loan provision and Rs 14.10 crore borrowing-cost accounting change.

Outlook and guidance

• FY11 MoU targets included sanctions of Rs 16,500 crore and releases of Rs 5,775 crore for housing and urban development.

• Priorities include supporting JNNURM and Rajiv Awas Yojana through financing, project appraisal, technical consultancy and selective implementation.

• Integrated ERP implementation and focused Strategic Business Units were identified as initiatives to strengthen operational capacity.