Housing and Urban Development (HUDCO) Q3 24/25 earnings summary

Executive summary

• Transitioned from a housing finance company to a diversified NBFC-IFC with over five decades of expertise, focusing on multi-sector infrastructure financing and strong government partnerships.

• Recently accorded Navratna status, reinforcing its strategic role in India's infrastructure growth.

• Operations span across India, offering end-to-end project support, consultancy, and capacity building.

• Consistently profitable, with a strong commitment to social justice and value-added services.

• Consolidated unaudited financial results for the quarter and nine months ended December 31, 2024, have been reviewed and approved by the Board and auditors, with no material misstatements identified.

Financial highlights

• Loan sanctions reached ₹92,151 crore in 9MFY25, a 5x increase year-over-year; disbursements at ₹31,760 crore, up 4x.

• Loan book grew 41% YoY to ₹1,18,931 crore as of Q3 FY25; net worth increased 11% YoY to ₹17,965.59 crore.

• Profit after tax for 9MFY25 rose 40% YoY to ₹1,981.4 crore; revenue from operations up 30% YoY to ₹7,466.3 crore.

• Earnings per share for 9MFY25 at ₹9.90, up 40% YoY; market capitalization nearly doubled YoY to ₹46,986.59 crore.

• Weighted average cost of borrowing decreased by 30 bps to 6.8% over the last year.

Outlook and guidance

• Loan book expected to reach INR 1.5 lakh crores by FY26 and INR 3 lakh crores by 2030, with a projected CAGR of 15-20%.

• Growth rate to remain high (30-40%) for the next two years before stabilizing.

• No equity infusion anticipated through 2030 due to strong capital ratios.

• Positioned to play a critical role in India's infrastructure push, supporting flagship schemes like PMAY 2.0, Smart Cities, and AMRUT.

• Maintains sufficient liquidity and undrawn credit lines, with strong lender relationships and no defaults in debt servicing.