Housing and Urban Development Corporation (HUDCO)'s consolidated net profit dropped 39.4% to Rs 203.38 crore on 1.9% decrease in total income to Rs 1781.79 crore in Q1 June 2020 over Q1 June 2019.
Consolidated profit before tax (PBT) tumbled 47.4% to Rs 270.83 crore in Q1 June 2020 over Q1 June 2019. Current tax expense for the quarter declined 28.9% year-on-year at Rs 98.46 crore. The Q1 result was declared after market hours yesterday, 14 September 2020.
The COVID-19 pandemic continues to spread globally and its impact have been felt across the sectors. Since, HUDCO primarily operates in providing financial assistance for Housing and Urban development projects to Government and Government agencies. The company said that it holds a stable asset class which can very well withstand the pandemic situation.
In order to mitigate the burden of debt servicing brought about by disruptions of business activities, HUDCO granted moratorium of three months on repayments falling due between 1 March 2020 and 31 May 2020, to the eligible borrowers, as allowed by RBI guidelines on 27 March 2020 and 17 April 2020.
HUDCO provides long term finance for construction of houses for residential purposes or finance or undertakes housing and urban development programs in the country. The Government of India holds 89.81% stake in the housing financer as on 30 June 2020.
Shares of HUDCO fell 0.99% to Rs 34.90 on BSE. The stock soared 93.35% from its 52-week low of Rs 18.05 hit on 24 March 2020.
On the technical front, the stock's RSI (relative strength index) stood at 43.779. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading between its 50-day moving average (DMA) placed at 35.73 and its 200-day moving average (DMA) placed at 31.56.
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