HUDCO January-March Profit Up Just 4% As Finance Costs Surge

Housing and Urban Development Corp. Ltd. posted a modest 4% year-on-year rise in net profit to ₹7.28 billion for the quarter ended March, as a sharp jump in finance costs weighed on the bottomline. Sequentially, profit declined.

The quarter's performance fell short of analyst expectations, which had pegged net profit at around ₹7.40 billion. Following the earnings release, 

Total expenses surged 46.7% to ₹18.35 billion due to a 50% rise in finance costs, despite a write-off reversal of ₹1.42 billion during the quarter.

The write-off reversal helped improve asset quality. As of March 31, HUDCO’s gross non-performing asset ratio stood at 1.67%, down from 2.71% a year earlier. Net NPA dropped to 0.25% from 0.36%. Provisions at the end of March totalled ₹18.11 billion, with a provision coverage ratio of 85.44%.

Total income in the quarter rose 30% on year and 3.1% on quarter to ₹28.55 billion, with interest income contributing ₹28.21 billion, up 41% on year.

For 2024–2025, HUDCO reported a 28% rise in net profit to ₹27.09 billion. Annual income increased 30.2% to ₹103.48 billion from ₹79.48 billion in the previous year.