PNB Housing Finance (PNBHOUSING) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw retail disbursement grow 19% year-over-year to ₹4,363 crore, with retail loan assets reaching ₹65,157 crore and affordable/emerging segments contributing 22% of the retail book.

• Net profit after tax for Q1 FY25 was ₹432.81 crore (up 24.6% year-over-year), with return on assets improving to 2.38%.

• Gross NPA reduced to 1.35% as of June 30, 2024, from 3.76% a year ago; corporate GNPA stands at nil.

• Retail book now forms 97.3% of total assets, up from 87% in March 2022.

• Expanded to 303 branches/outreaches, including 160 for affordable and 50 for emerging markets.

Financial highlights

• Revenue for Q1 FY25 was ₹1,829 crore (consolidated: ₹1,823.06 crore), up from ₹1,704 crore (consolidated: ₹1,707.63 crore) in Q1 FY24.

• Net interest income rose to ₹651 crore, a 3.6% year-over-year increase.

• Operating expenses increased 27% year-over-year to ₹190 crore, mainly due to branch expansion and annual appraisals.

• Cost of borrowing reduced to 7.75% in Q1 FY25 from 8.00% in Q1 FY24; incremental cost at 7.75%.

• Book value per share increased to ₹593 as of June 30, 2024.

Outlook and guidance

• Retail loan asset growth guidance maintained at 17% for FY25; retail disbursement growth expected at 25%+.

• NIM expected to remain at or above 3.5% for the next 2-3 quarters, with potential for improvement as high-yielding segments grow.

• ROA target set at 2.4%-2.6% over the next three years.

• Positioned to capitalize on the expanded PMAY-U scheme, targeting 1 crore urban families with ₹10 lakh crore investment over 5 years.

• Plan to add 40-50 branches annually, focusing on affordable and emerging segments.