Q4 2026 Can Fin Homes Ltd Earnings Call Transcript
Key Points
- Can Fin Homes Ltd (BOM:511196) achieved an all-time high disbursement of INR3,245 crore in Q4, marking consistent quarterly performance peaks.
- The company reported a 7% disbursement growth in Karnataka, with expectations of a 15% growth in the upcoming year.
- The shift from annual to quarterly reset for 85% of the loan book has been completed, allowing the company to pass on 50 basis points to customers, which is expected to help manage BT outflows.
- The company has seen a reduction in delinquency numbers for the fifth consecutive quarter, resulting in low credit costs.
- Can Fin Homes Ltd (BOM:511196) plans to open 28 new branches in the first half of the year, which is expected to drive further growth in disbursements.
- The company faced challenges in Telangana, ending the year with a marginal decrease in disbursements compared to the previous year.
- A higher-than-expected rundown of INR6,600 crore impacted AUM growth, resulting in a lower-than-targeted 10.44% growth.
- The company anticipates an elevated cost-to-income ratio due to IT implementation costs, with an additional INR40 crore impact expected in the current financial year.
- The company's ROE might be slightly impacted due to increased costs, although it aims to maintain an ROE of over 18%.
- There is a risk of increased competition from LIC Housing and Bajaj Finance, which are key competitors in the BT outflows.
(audio in progress) -- crores, and this has been supported by consistance quarterly performance where in each of the four quarters, compared to the respective quarter performance, it has been a new peak has been achieved in each of the four quarters. With Q4 ending at an all-time high of INR3,245 crore disbursement in Q4.
In terms of the two years -- Karnataka and Telangana, where the company was having some issues in the beginning of the year, where both the zones started with some negative. But over a period with the situation improving in terms of the e-Khatha performance for Karnataka, the state has consistently improved the performance. And by the end of the year, we have ended with a 7% disbursement growth in Karnataka.
And now, in fact, also the position is such that barring the rural areas are Gram Panchayat approvals where e-Khatha is getting delayed to some extent. But otherwise, in most of the urban centers, it's coming quite okay. So therefore, this performance is likely to
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