Aavas Financiers reports 11% rise in net profit at Rs 50 cr in Q1

Affordable housing loan provider Aavas Financiers Ltd on Wednesday reported an 11 per cent rise in its net profit to Rs 50.1 crore in the first quarter ended June of the current fiscal year.

The company had posted a net profit of Rs 45.3 crore in the corresponding quarter of the previous fiscal year.

Total income of the company grew to Rs 233.59 crore during April-June period of 2020-21 from Rs 197.52 crore in same period of 2019-20, Aavas Financiers said in a regulatory filing.

The company's assets under management rose 25 per cent to Rs 7,935.30 crore as on June 30, 2020, as against Rs 6,362.30 crore by end June 2019, it said in a release.

However, the disbursements during the first quarter of the financial year 2021 fell 68 per cent to Rs 213 crore from Rs 671 crore a year-ago.

Gross NPAs at 0.46 per cent are maintained below 1 per cent and net NPAs are 0.32 per cent as on June 30, 2020, it said.

"Business activity is gradually picking up, we disbursed Rs 213 crore during the quarter out of which Rs 154 crore was disbursed in June. We continue to borrow judiciously and raised Rs 716 crore during the quarter.

"As on 30th June 2020, we maintained sufficient liquidity of Rs 2,362 crore in the form of cash and cash equivalents and un-availed documented sanctions," said Sushil Kumar Agarwal, CEO, Aavas Financiers.

The company has made an additional provision of Rs 4.6 crore for the potential impact of Covid-19, he said.

The overall provisioning for the potential impact of the pandemic stands at Rs 9.06 crore as on June 30, 2020.

Backed by private equity players Kedaara Capital and Partners Group, Aavas Financiers (formerly Au Housing Finance Limited) commenced operations in 2011 from Jaipur, Rajasthan.

It primarily serves the housing finance needs of low and middle-income self-employed customers in semi-urban and rural areas in India.

Shares of Aavas Financiers closed 1.39 per cent up at Rs 1,413.15 apiece on BSE.