Q1 2027 Can Fin Homes Ltd Earnings Call Transcript
Key Points
- Can Fin Homes Ltd (BOM:511196) exceeded its disbursement target for Q1 FY27, achieving INR2,609 crore against a projected INR2,500 crore.
- The company reported a 29% overall growth in disbursements, with the salaried segment growing by 21% and the self-employed segment by 44%.
- The housing segment grew by 28% and the non-housing segment by 32%, indicating robust growth across all product lines.
- The company maintained a stable yield of 9.81% and reduced its cost of borrowing to 6.98%, resulting in a spread of 2.83% and a NIM of 3.81%.
- Can Fin Homes Ltd (BOM:511196) reported a reduction in stage two and stage three delinquencies, with a credit cost guidance of 10 basis points, indicating strong asset quality management.
- The company experienced a higher rundown of INR1,857 crore in Q1 FY27, compared to INR1,730 crore in Q4 of the previous year, primarily due to increased prepayments and amortization.
- Despite efforts to reduce BT outs, the company saw a marginal increase from INR400 crore in Q4 to INR408 crore in Q1 FY27.
- The company's cost-to-income ratio increased to 19.5%, partly due to higher operating expenses related to IT transformation.
- There is a need for Can Fin Homes Ltd (BOM:511196) to push for higher disbursements in subsequent quarters to achieve its targeted 14% AUM growth.
- The company faces competition from private players like LIC and Bajaj, which impacts its ability to retain customers and manage prepayments effectively.
Thank you very much. So, ladies and gentlemen, good day and welcome to the Can Fin Homes Q1 FY27 conference call hosted by Investec Capital. (Operator Instructions). Please note, this call is being recorded.
I now hand over the conference to my colleague, Nidhesh Jain from Investec. Thank you and over to you, Nidhesh.
Thank you, Swapna. Good afternoon, everyone. Welcome to the quarter one FY 2027 earnings conference call of Can Fin Homes Limited, hosted by Investec Capital. We will start with management commentary, followed by a Q&A session. 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. Shailesh Kumar Singh, Deputy MD; Mr. Prakash, President; Mr. Uthaya Kumar, President and CRO and Mr. Abhishek Mishra, CFO of Can Fin Homes Limited.
Please note that this call is being recorded. I would now like to hand over the call to Mr. Suresh Iyer for his opening comments. Over to you, sir.
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