Shriram Housing Finance Limited, a leading affordable housing finance company announced its results for Q2FY23. Assets Under Management (AUM) grew by 54 per cent YoY to INR 6,546 Cr in Q2FY23. The disbursals for the quarter grew by 66 per cent YoY to INR 1,049 Cr. For H1FY23, the disbursals stood at INR 1,844 Cr, a growth of 116 per cent over the same period last year. The company has maintained an accelerated growth momentum with AUM growing at 52 per cent CAGR over the last 3 years, coupled with consistent improvement in asset quality.
The Profit After Tax for Q2FY23 was INR 34 Cr, an 81 per cent YoY growth. For H1FY23, the PAT stood at 64.2 Cr, a growth of 117 per cent YoY. Asset quality improved with Gross Stage-3 assets at 1.04 per cent (excluding RBI circular dated 12 Nov’21), an 87 bps YoY improvement. Net Interest Margins also improved by 124 bps YoY to 7.2 per cent for Q2FY23. The disbursement yields in the quarter increased by 70 bps over Q2FY22. The annualised ROA as on Q2FY23 stood at 2.6 per cent, an increase of 46 bps YOY.
Growing Distribution Network: The company is investing in growing the distribution by scaling up its network footprint across the identified key focus states. The branch network stands at 112 branches as on Sep’22. The company will continue to expand its distribution footprint and expects to end the financial year with ~150 branches. In addition to this, the company continues to offer its products through an additional 211 branches from the Shriram group network, giving it an overall presence across 323 locations.
Digital Drive: Shriram Housing Finance witnessed an increase in the usage of digital platforms across the customer life cycle in H1FY23. The company launched a sales fulfilment tool – GrihaPoorti, a Tab based Application – for its sales team to drive digital customer onboarding. For the quarter gone by, more than 68 per cent of all customers were sourced through the app. The company is working towards enhancing its platforms and services with API-based integrations which will lead to simplification and quicker turnaround.
Commenting on the results Ravi Subramanian, MD & CEO, Shriram Housing Finance said, “The availability of affordable housing and its credit gap has always been an issue. However, in recent years due to the policy stimulus, improving infrastructure and employment opportunities we are witnessing changes for the better. In fact, post the pandemic there has also been a shift in consumer living patterns, with many organisations opening offices in non-metros leading to higher demand for affordable housing finance. Riding on the back of this largely untapped market Shriram Housing Finance has steadily moved to become the 4th largest affordable housing finance company in India today. With our widening distribution network, we would continue to outpace the industry growth. Our focus is to enhance our distribution network to widen our presence in the desired markets, which will help us build a continuous growth reservoir. We have crossed INR 6,500 Cr AUM and will continue to deliver robust growth in FY23.”