DHFL profit rises 16.3% to Rs 201 crore in June quarter

Mortgage lender DHFL on Wednesday reported a 16.2% rise in net profit to Rs 201.4 crore for the first quarter ended June 30.

The company had posted a net profit of Rs 173.2 crore in the same quarter last financial year.

Loan book outstanding grew 18.325 to Rs 63,646.6 crore during the quarter as against Rs 53,795.7 crore in the corresponding quarter a year ago.

"The importance of Housing for All and Smart Cities initiatives by the government coupled with our efforts to add value to the affordable housing segment and the financial literacy program at the bottom of the pyramid has contributed to the top line growth of the company," DHFL Chairman and Managing Director Kapil Wadhawan said.

Assets under management grew by 20.02% quarter- on-quarter, reaching Rs 72,012.1 crore from Rs 60,001.6 crore as on June 30, 2015, he said.

Loan disbursements and sanctions were Rs 6,214.8 crore and Rs 8,800.7 crore, respectively, for the quarter, showing an increase of 25.54% and 12%, respectively, over the corresponding period of the previous year.

Gross NPA was at 0.98% and the Net Interest Margin increased to 2.91% at the end of June.

On outlook, he said, good monsoon, further reduction in interest rate by RBI and implementation of 7th Pay Commission will help housing finance sector.

"New policy initiatives by the Government of India has set a tone for the growth of the housing finance sector in the coming quarters and we at DHFL remain committed to offering a range of home finance options," Wadhawan said.

Share of the company traded at Rs 219.90, up 1.57% on BSE.