Can Fin Homes Q3 results preview: Profit to grow over 29%; asset quality likely to be stable

Canara Bank-promoted housing finance company, Can Fin Homes, will announce its results for the third quarter that ended December 31, numbers on January 20. Zee Business analysts believe that the company is likely to record a 29.4 per cent rise in net profit at Rs 196 crore against Rs 151.5 crore a year ago.

The net interest income, or NII, the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, is expected to grow 29.9 per cent at Rs 327 crore against Rs 251.7 crore year-on-year (YoY).

Analysts predict the loan book to increase 13 to 15 per cent YoY and the net interest margin, or NIM, money that a bank earns from interest on loans compared to the amount of interest it pays on deposits, to remain flat at 3.7 to 3.8 per cent against 3.8 per cent YoY.

Gross non-performing assets (GNPA) and net non-performing assets (NNPA) are estimated to remain flat at 0.76 per cent and 0.43 per cent, respectively.

On a positive note, business is expected to grow; however, margins will either remain stable or increase slightly. Additionally, asset quality will remain stable.

How did Can Fin Home fare in Q2?

The housing finance company in Q2 posted an 11.6 per cent rise in its profit to Rs 158 crore. The NII rose 26 per cent to Rs 317 crore, and the GNPA increased sequentially from 0.63 per cent to 0.76 per cent in the second quarter ended September 30.

NNPA also increased sequentially to 0.43 per cent in the second quarter. The operating income of Canfin Homes experienced a decline of 15.31 per cent quarter-on-quarter and a decrease of 2.37 per cent year-on-year.

The earnings per share (EPS), highlighting a positive growth trend, for Q2 FY24 stood at Rs 11.87, reflecting an increase of 11.56 per cent YoY.

In a year, shares of the housing finance company have grown by over 45 per cent as against the Nifty 50's rise of over 17 per cent.

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