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Gruh Finance spurts after strong Q4 results

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Capital Market
Last Updated : Apr 15 2014 | 11:55 PM IST

Gruh Finance rose 7.36% to Rs 337 at 10:53 IST on BSE after the company's net profit rose 16.71% to Rs 73.60 crore on 31% growth in total income to Rs 254.42 crore in Q4 March 2014 over Q4 March 2013.

The result was announced after market hours on Friday, 11 April 2014.

Meanwhile, the BSE Sensex was down 152.29 points, or 0.67%, to 22,476.67.

On BSE, so far 53,000 shares were traded in the counter, compared with an average volume of 9,661 shares in the past one quarter.

The stock hit a high of Rs 359 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 331.40 so far during the day. The stock hit a 52-week low of Rs 188 on 30 April 2013.

The stock had outperformed the market over the past one month till 11 April 2014, rising 13.39% compared with the Sensex's 3.68% rise. The scrip had also outperformed the market in past one quarter, rising 12.98% as against Sensex's 9.01% rise.

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The mid-cap company has an equity capital of Rs 36.03 crore. Face value per share is Rs 2.

Gruh Finance's net profit surged 21.3% to Rs 176.96 crore on 30.08% growth in total income to Rs 846.16 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

Revenue from operations for Q4 March 2014 includes write back of excess provision of Rs 19.22 crore made in the earlier quarters of the year as against Rs 14.94 crore written back in the corresponding quarter in the previous year, Gruh Finance said.

The gross non-performing assets (NPAs) of the company are at Rs 18.87 crore (0.27% of the loan assets) as on 31 March 2014, as against Rs 17.64 crore (0.32% of the loan assets) as on 31 March 2013. Net NPAs of the company are Nil as on 31 March 2014, as against Rs 2.70 crore (0.05% of the loan assets) as on 31 March 2013, Gruh Finance said.

Disbursements during FY 2014 amounted to Rs 2577.47 crore as compared to Rs 2174.39 crore during FY 2013, representing a growth of 19%. Loan assets have increased from Rs 5437.80 crore as on 31 March 2013 to Rs 7009.04 crore as on 31 March 2014, registering a growth of 29%, Gruh Finance said.

Gruh Finance's board of directors at its meeting held on Friday, 11 April 2014, approved bonus issue in the ratio of 1:1 i.e. one equity share of Rs 2 each for every equity share held as on the record date to be fixed for the purpose to the shareholders of the company. The issue of bonus shares is subject to the approval of the shareholders of the company. The board also recommended dividend of Rs 3 per share for FY 2014.

Gruh Finance is engaged in providing loan for purchase and construction of residential houses. Gruh Finance is a subsidiary of housing finance major HDFC, which holds 59.27% stake in the firm (as per the shareholding pattern as on 31 December 2013).

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First Published: Apr 15 2014 | 11:06 AM IST

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