October 2024 marks a significant financial results season in India, as many companies report their earnings for the second quarter of the fiscal year 2024-25. This period is crucial for investors and analysts, offering insights into the economic health and performance of various sectors.
Here are two NBFC stocks that have witnessed fluctuations in the share prices after announcing positive financial performance for Q2 FY25, through the latest filings with the stock exchanges on Thursday post-market hours:
Home First Finance Company India Limited
With a market cap of Rs. 9,718.8 crores, the shares of a technology-driven affordable housing finance company surged 9 percent to hit an intraday high at Rs. 1,215 on BSE, during the trading session of Friday.
For Q2 FY25, Home First Finance Company reported a total income of Rs. 374.2 crores, reflecting a significant growth of around 9.6 percent QoQ from Rs. 341.3 crores in Q1 FY25, as well as a growth of about 34.6 percent YoY from Rs. 278 crores in Q2 FY24.
Likewise, the company’s net profit for Q2 FY25 increased to Rs. 92.2 crores, representing a growth of around 5 percent QoQ from Rs. 87.8 crores in Q1 FY25, and a year-on-year rise of nearly 24 percent from Rs. 74.3 crores in Q2 FY24.
The company’s Net Interest Income (NII) rose by 18 percent YoY to Rs. 139.4 in Q2 FY25, up from Rs. 118 crores in Q2 FY24, and increased by 6.5 percent QoQ from Rs. 131 crores Q1 FY25, over the same period.
As of Q2 FY25, the company’s Assets Under Management (AUM) reached Rs. 11,229 crores, reflecting a year-on-year increase of 34.2 percent from Rs. 8,365 crores and a rise of 7.2 percent QoQ from Rs. 10,478 crores.
Additionally, disbursements escalated to a record high of Rs. 1,177 crores, marking a growth of 1.2 percent QoQ and a 22.7 percent YoY.
The stock has delivered positive returns of nearly 23.6 percent in the last one year, as well as around 18 percent returns YTD.
Home First Finance Company India Limited, a Housing Finance Company founded in 2010, is primarily engaged in the business of lending housing loans, loans for the purpose of purchasing commercial property and loans against property. Its main business is financing by way of loans towards the affordable housing segment in India.
PNB Housing Finance Limited
With a market cap of Rs. 24,660.4 crores, the shares of a registered Housing Finance Company with National Housing Bank (NHB) surged nearly 11 percent to hit an intraday high at Rs. 1,035 on BSE, during the trading session of Friday.
For Q2 FY25, PNB Housing Finance reported revenue from operations of Rs. 1,879 crores, reflecting a significant growth of around 3 percent QoQ from Rs. 1,823 crores in Q1 FY25, as well as a growth of about 5.7 percent YoY from Rs. 1,778 crores in Q2 FY24.
Likewise, the company’s net profit for Q2 FY25 increased to Rs. 470 crores, representing a growth of around 8.6 percent QoQ from Rs. 433 crores in Q1 FY25, and a year-on-year rise of nearly 22.7 percent from Rs. 383 crores in Q2 FY24.
The company’s Net Interest Income (NII) rose by 1.2 percent YoY to Rs. 669 in Q2 FY25, up from Rs. 661 crores in Q2 FY24, and increased by 2.7 percent QoQ from Rs. 651 crores Q1 FY25, over the same period. This lower growth in NII is due to the declining impact of the Corporate book.
In Q2 FY25, the Affordable and Emerging Market segment accounted for 23 percent of the Retail Loan Asset base. During the same quarter, this segment contributed 31 percent of total retail disbursements. The affordable segment demonstrated strong performance, surpassing Rs. 3,000 crores in Loan Assets as of October 2024.
Net Interest Margin (NIM) was reported at 3.68% percent in Q2 FY25, compared to 3.65 percent in Q1 FY25 and 3.95 percent in Q2 FY24. PNB Housing Finance also recovered Rs. 48 crores from the retail written-off pool in Q2 FY25.
The stock has delivered positive returns of nearly 33.3 percent in the last one year, as well as around 21 percent returns YTD.
Incorporated in 1988, PNB Housing Finance Limited is primarily engaged in the business of providing loans to individuals and corporate bodies for the purchase, construction, repair and up-gradation of houses. It also provides loans for commercial space, loans against property and loans for purchase of residential plots.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
