HUDCO Q3 Profit Soars: Net Income Jumps Over 2-Fold to Rs 519 Crore

Mumbai, February 9: Housing and Urban Development Corporation Limited (HUDCO) announced a significant increase in its financial performance for the third quarter (Q3) of the fiscal year 2022-23 (FY23). The company reported a more than two-fold rise in its standalone profit after tax (PAT) to Rs 519.19 crore for the quarter ended December 2023.

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Impressive Revenue Growth

HUDCO's revenue from operations also witnessed a substantial increase of 18% in the December quarter, reaching Rs 2,012.66 crore compared to Rs 1,708.9 crore in the corresponding quarter of the previous fiscal year.

Sustained Growth in Loan Book and Reduction in NPAs

The company attributed its strong performance to consistent growth in its loan book, which increased from Rs 79,290 crore to Rs 84,424 crore year-on-year. Additionally, HUDCO achieved a significant reduction in its net non-performing assets (NPAs) from 0.96% to 0.44% during the same period.

Plans for Fund Mobilisation and Capitalising on Opportunities

HUDCO Chairman and Managing Director Sanjay Kulshrestha shared the company's plans to mobilise funds through the External Commercial Borrowing (ECB) route to optimise the cost of borrowings. He highlighted the emphasis on housing and infrastructure in the current fiscal budget and expressed HUDCO's readiness to capitalise on these opportunities.

Market Capitalisation Growth and Enhanced Borrowing Limits

Kulshrestha also mentioned the remarkable growth in HUDCO's market capitalisation, which increased from Rs 10,000 crore in March 2023 to over Rs 40,000 crore in December 2023. The company has already borrowed Rs 12,000 crore from the market, and its board has enhanced the borrowing limits from Rs 18,000 crore to Rs 35,000 crore.

Strong Disbursement Target and Robust Pipeline

Kulshrestha expressed confidence in HUDCO's ability to increase disbursements, with projects worth around Rs 18,000 crore already sanctioned and a strong pipeline of projects valued at Rs 30,000-40,000 crore. He emphasised the company's commitment to moving away from past trends and setting a robust disbursement target for the current fiscal year.

HUDCO's impressive financial performance in Q3 FY23 reflects its strategic focus on growth, prudent risk management, and capitalising on market opportunities. With a strong loan book, reduced NPAs, and plans for fund mobilisation, HUDCO is well-positioned to contribute to the development of housing and infrastructure in India.