Housing finance company’s profit increased by 27%
Having your own house is everyone’s dream, and raising capital to fulfill this dream is a big challenge, especially in small cities and towns. In such a situation, the business of the housing finance companies which are understanding the need of the common man and giving them loans is expanding rapidly. One such company is India Shelter Finance Corporation, which has recently presented its March quarter results.
The company’s performance has not only been strong on the financial front, but it has also gifted a handsome dividend to its shareholders. If you are a stock market investor or interested in housing sector companies, then this growth story of India Shelter is very important for you.
Huge jump in profits, crossed Rs 500 crore mark
India Shelter has made excellent earnings in the quarter ending March. The company’s net profit (Profit After Tax) has increased by 27 percent compared to the same quarter last year. While last year the company had earned Rs 108 crore in the March quarter, this time this figure has increased to Rs 138 crore.
If we talk about the entire financial year (FY26), the picture of the company’s progress is even clearer. The profit for the entire year has taken a huge jump of 33 percent and has crossed Rs 503 crore. Along with profits, the internal health of the company has also strengthened. Return on Assets (RoA) has been recorded at 5.9 percent and Return on Equity (RoE) has been recorded at 17.6 percent.
Focus on small cities achieved the milestone of Rs 11 thousand crores
This company mainly works in those places where the reach of big commercial banks is limited. The main focus of this company is to provide loans to middle and low income people in small towns and semi-urban areas for construction of a new house or repair of an old house. The effect of this ground strategy is that the company’s Gross Assets Under Management (AUM) has jumped by 29 percent to a huge level of Rs 11,044 crore.
The demand for home loans is good in the market and to capitalize on this demand, the company is continuously expanding its scope. Six new branches have been opened in this quarter alone. If we look at the figures for the entire year, the business has been expanded through 41 new branches. With these new branches the total number of employees of the company has also reached 4,800.
₹10 gift for investors
The direct benefit of this excellent earning is going to reach the pockets of the shareholders. The company’s board has recommended a final dividend of Rs 10 per share. This amount is exactly 200 percent of the face value. However, this amount will come into the bank accounts of the investors only when this proposal gets the final approval of the shareholders in the upcoming Annual General Meeting (AGM).
Expressing satisfaction over these results, Rupinder Singh, Managing Director and CEO of India Shelter Finance, said that this year has been very strong in terms of performance. He clarified that the company has been able to achieve this position due to excellent business growth, continuously improving asset quality and strong operating leverage.
However, on April 30, the company’s shares were trading in the red with a slight decline on the National Stock Exchange (NSE). This share fell 1.09 percent and closed at the level of Rs 811.10.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
