New Delhi: Dewan Housing Finance Ltd (DHFL) on Wednesday reported 31% rise in net profit to Rs 248 crore for the fourth quarter ended March on higher loan disbursements.
The mortgage lender’s net profit was Rs 190 crore in the January-March period of the previous financial year, 2015-16.
However, the profit during the fourth quarter of 2016-17 soared to Rs 2,218 crore taking into account one time exceptional gain of Rs 1,969.43 crore on stake sale in its insurance arm DHFL Pramerica Life Insurance to its wholly owned subsidiary DHFL Investments Ltd. DHFL’s total income from operations has increased to Rs 2,378 crore in the quarter under review, as against Rs 1,960 crore in the year-ago period, the company said in a statement.
Loan book outstanding grew 17% to Rs 72,096 crore as against Rs 61,775 crore in the corresponding quarter of the previous year, it said.
“The company has registered a robust growth in business in the fourth quarter as we continue to take several proactive steps towards the fulfilment of our mission built over three decades to enable every Indian to own a home of his own,” DHFL Chairman Kapil Wadhawan said.
The company recommended a final dividend of Rs 3 per equity share for 2016-17.
For the entire 2016-17, the company clocked 27% rise in net profit to Rs 927 crore, compared to Rs 729 crore in the previous fiscal. It reported a total income of Rs 8,857 crore for last fiscal, compared to Rs 7,300 crore a year ago.
Net Interest Margin stood at 2.99% while Asset Under Management (AUM) grew 20% to Rs 83,560 crore for the year ended March 31, 2017. Gross NPA stood at 0.94% at the end of March 31, 2017.
Sharing outlook for the housing sector, he said, the current low mortgage penetration offers a huge opportunity for the sector to grow, supported by the country’s sustainable development cycle and the socio-economic transformation through long-term programs like Smart Cities, Make in India, that have already been set in motion.
“We foresee ‘Specialisation’ as key driver in financial services with RBI paving the way for entry of specialised banking. We also anticipate Mortgage Banks to be recognised as one of the critical contributors to the overall finance ecosystem,” he said.