HUDCO Q4 FY24 Earnings Conference Call Summary
Key Financial Achievements
• Financial Commitments: Increased by 235% to over INR 82,000 crores.
• Disbursements: Grew by 112% to INR 18,000 crores.
• Loan Book: Rose by 15% to INR 92,000 crores.
• Cost of Funds: Decreased from 7.46% to 7.1%.
• Profits: Increased by 24% to over INR 2,100 crores.
• Gross NPA: Reduced from 3.42% to 2.71%.
Future Projections
• Loan Book Target: Approximately INR 1.5 lakh crores.
• Disbursement Expectations: INR 40,000 to INR 45,000 crores for FY25.
• Repayments: Estimated at INR 16,000 crores.
Capital Expenditure and Borrowing Structure
• Capex Focus: Primarily on lending to state government entities for infrastructure and housing.
• Borrowing Structure: Most bank borrowings linked to floating rates; 80% of the loan book is fixed.
Growth and Sector Focus
• Net Interest Margin (NIM): Expected to improve with expansion into bankable projects.
• Key Areas for Loans: Road sector, industrial corridors, affordable housing, Jal Jeevan Mission, health projects, metro projects, and highway upgrades.
• Sanctioned Pipeline: Committed pipeline of around INR 85,000 crores for the current financial year.
Maharatna Status and Government Support
• Criteria for Maharatna Status: Net worth of INR 15,000 crores and turnover of INR 25,000 crores; target AUM of INR 3 lakh crores by 2030.
• Government Support: Seeking liability support and interest rate subsidies for large projects.
Non-Performing Assets and Capital Dilution
• NPAs: Gross NPAs reduced to 2.71%, net NPA at 0.36%.
• Capital Dilution: No immediate need anticipated due to robust business model and low risk weights.
Conclusion
• Commitment to Stakeholders: Emphasis on improving returns and maintaining a strong business pipeline.
• Dividend Return: Approximately 41.5%.
• Call Closure: Invitation for further inquiries and gratitude expressed to participants.