Q3 2025 Can Fin Homes Ltd Earnings Call Transcript
Key Points
- Can Fin Homes Ltd (BOM:511196) has successfully shifted all its bank borrowings to either repo rate or T-bills, reducing its cost of borrowing.
- The company raised INR1,600 crores from NHB at a lower rate of approximately 7.6%, which is 30-35 bps lower than typical bank borrowing rates.
- Despite challenges, the company has maintained a gross NPA of 0.92%, indicating strong asset quality management.
- The yield on the company's loan book improved slightly to 10.14% for the nine months ended, compared to 10.12% in the previous quarter.
- Can Fin Homes Ltd (BOM:511196) is embarking on a major IT transformation project with IBM, expected to enhance operational efficiency by the third quarter of the next financial year.
- Disbursements were flat at INR1,879 crores due to setbacks in Karnataka, falling short of the expected INR2,300 crores to INR2,400 crores.
- The company's AUM growth was impacted, standing at only 9% for the year due to lower disbursements.
- There was a slight increase in gross NPA and SMA Stage 2 levels, with a 15 bps increase in SMA-0.
- The company faces challenges in Karnataka and Telangana, which contribute significantly to its business, due to local regulatory issues affecting disbursements.
- The IT transformation project may lead to increased costs in the next financial year, potentially impacting the cost-to-income ratio.
Ladies and gentlemen, good day, and welcome to the Can Fin Homes Q3 FY25 earnings conference call hosted by Investec Capital Services India Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Nidhesh Jain from Investec Capital. Thank you, and over to you, sir.
Thank you, Zico. Good afternoon, everyone. Welcome to the Q3 FY25 earnings conference call of Can Fin Homes Limited. To discuss the financial performance of Can Fin Homes and to address your queries, we have with us Mr. Suresh Iyer, MD and CEO; Mr. Vikram Saha, Deputy MD; Mr. Apurav Agarwal, CFO; Mr. Prakash, General Manager; Mr. Prashanth Joishy from Can Fin Homes Limited.
I would now like to hand over the call to Mr. Suresh Iyer for his opening comments. Over to you, sir.
Good afternoon, everyone. Thank you, Nidhesh,
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