Q2 2025 Can Fin Homes Ltd Earnings Call Transcript
Key Points
- Can Fin Homes Ltd (BOM:511196) reported a 28% growth in disbursements compared to Q1 and an 18% growth compared to Q2 of the previous year.
- The company achieved a stable quarter in terms of spreads and net interest margins (NIMs), with a slight improvement in cost of borrowing.
- AUM growth improved from 9% in Q1 to 10% in Q2, with expectations to reach 11-12% by the end of Q3 and 13-14% by the end of Q4.
- The company received a refinance sanction from NHB at a lower cost than current borrowings, which is expected to benefit future quarters.
- Efforts to expand geographically and diversify the customer base, including increasing the self-employed segment and marketing initiatives, are underway to sustain growth beyond FY25.
- There was an increase in SMA 0 and 1 accounts, indicating some collection challenges, particularly linked to regulatory changes affecting advance payments.
- Operational expenses increased due to promotions, increments, actuarial evaluations, and legal expenses related to surface actions.
- The company is facing challenges in Telangana due to issues with property registrations and demolitions, affecting growth in that region.
- The cost-to-income ratio is expected to rise slightly due to ongoing IT upgrades and operational expenses.
- The company is still in the early stages of implementing builder tie-ups, with limited success so far, which could impact growth in that segment.
Ladies and gentlemen, good day and welcome to Can Fin Homes Q2 FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Nidesh Jain from Investec Capital Services. Thank you and over to you, sir.
Thank you Sita. Good afternoon, everyone. Welcome to the quarter two 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; and Mr. Prashanth Joshi from Can Fin Homes Limited.
I would now like to hand over the call to Mr. Iyer for his opening comments. Over to you, sir.
Yeah, thank you Nidesh. Good afternoon to everyone, and thank you for taking the time out to join the call. I
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