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HUDCO reports remarkable high growth in Golden Jubilee year
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HUDCO reports remarkable high growth in Golden Jubilee year

Agency News

Chennai, Nov 18 : In its Golden Jubilee year, the State-owned Housing and Urban Development Corporation (HUDCO) has reported a remarkably high growth in all financial parametres during the second quarter of the current fiscal.

The 616th Board Meeting of HUDCO approved the Q2 results and the growth was remarkably high in all the financial parameters of its MoU targets Net Profit, Total Income, Net Worth, disbursements and balance sheet size, etc. Both the Gross NPA and the Net NPA are the lowest in the financing sector of a government listed company, an official release here today said.

Dr M Ravi Kanth, who is the CMD of HUDCO for the last five years, has been producing outstanding results for its growth and development, focusing on the required discipline and diligence for a Government Company having divested 10 per cent of its equity in 2017 and the remaining 15 per cent to be done before 2020 as per SEBI rules.

The Net Profit (Profit After Tax) of HUDCO registered a 2.16 time increase touching an all time high of the 2nd Quarter to Rs 725.84 crores in the 2019-20 fiscal (on quarter-on-quarter basis) from Rs 335.68 crores of the first quarter this year.

On half-yearly basis, the Net Profit was 72 per cent high with Rs 1,061.52 crores as on September 30 this year compared to Rs 615.52 crores during the same period last year. Total Income registered a growth of 1.13 times increase touching an all time high of the 2nd quarter to Rs 2053.79 crores from Rs 1,816.19 crores during the first quarter this year.

On half-yearly basis, the Total Income was 39 per cent high at Rs 3,869.98 crore as on September this year compared to Rs 2,793.10 crore last year. The Balance Sheet size grew by 55 per cent to Rs 75,000 crores as on September 30 this year from Rs 48,343 crores last year. The net worth of the company went up by 10 per cent to Rs 11,980.14 crores as on September 30 this year, compared to Rs 10,956 crores as on March 31, 2019.

Loan disbursements grew by 52 per cent to Rs 5,311 crores as on September 30 this year compared to Rs 3,503 crores last year, crossing cumulative disbursements of Rs.1,71,554 crores for both Housing and Urban Infrastructure in the country.

The NPAs were from the past years between 2003 and 2006 and because of the sincere efforts of the HUDCO Team for recovery of Rs 800 crores in 2018-19, the Gross NPA was reduced to 4.19 per cent and the Net NPA to 0.39 per cent as on September 30 this year, the lowest in the sector.

'Not even a single rupee was added as NPA, since Mr Ravi Kanth joined as CMD in 2014, with cautious and strategic lending to the State Governments, but with highest sanctions, highest disbursements, highest profit, highest networth to its remarkable credit in the last five years, though the credit off take in the market is not uniform and low because of the financial conditions and special circumstances of many state governments on repayment capacity', the release said. (UNI)