Shriram Housing Finance Limited, a Mumbai based affordable housing finance company, promoted by Shriram City Union Finance Limited (Shriram City) and part of the Shriram Group announced their financial results for Q2FY22. In Q2FY22, Assets Under Management (AUM) grew by 53% YoY to INR 4,255 Cr. compared to INR 2,779 Cr. in Q2FY21.
Disbursments were better than the pre-covid levels, at INR 633 Cr. compared to INR 221 Cr. in Q1FY22 and INR 517 Cr. in Q2FY21. Profit After Tax grew by 73% QoQ to INR 18.8 Cr. compared to INR 10.9 Cr. previous quarter. Asset quality improved with Gross Stage 3 assets at 1.72%, declining 36bps sequentially.
The Company’s collections have seen a marked uptick, with collection efficiency at 99.5% in Q2FY22. The Expected Credit Losses (ECL) provision as on Sep-21 is at INR 49.8 Cr., resulting in total provision to asset ratio at 1.34%. The total Stage 3 provision coverage ratio stands at at 69.8%.
The Company has strong capital buffers with comfortable capital adequacy ratio of 25%. During the quarter Shriram Housing Finance under ‘Griha Poorti’ increased its footprint in 67 branches of Shriram City in Andhra Pradesh and Telangana.
Commenting on the performance Mr. Ravi Subramanian, MD & CEO, Shriram Housing Finance said: “Affordable home loan disbursals surpassed the pre-covid levels and I believe Shriram Housing Finance has managed the pandemic stress with great resilence. We expect the disbursal run-rate to continue in 2HFY22. We are witnessing strong festive season demand for housing finance in tier 2 and tier 3 markets, with home affordability rising. We will deepen our presence in rural & semi urban areas where housing finance penetration is low to grow. In 2HFY22, we will focus on our expansion plans with ‘Griha Poorti’, our cross sell program through the Shriram City branch network, and are on track to cover 178 distribution points in AP & Telangana by Mar-22. "
