Shares of Aavas Financiers Limited fell 3% to Rs 1,394 per share on the BSE at 1:24 pm on May 4 after the housing finance company announced its fourth-quarter results on May 3. It was trading at Rs 1,400 apiece at 2:23 pm, down 2.85%.
Aavas Financiers reported a 9.6% rise in net profit to Rs 126.75 crore in Q4FY23 compared to Q4FY22, with net interest income (NII) up 17.6% to Rs 283.38 crore.
Profit before tax in Q4FY23 was Rs 158.56 crore, up 8.5% from Rs 146.09 crore in Q4FY22. Compared with FY22, the company’s FY23 net profit rose 20.5% to Rs 430.07 crore, and net interest income rose 23% to Rs 1,011.53 crore.
The company spent Rs 5,024.5 crore in FY23, up 39.5% from Rs 3,602.2 crore in FY22. The total number of active loan accounts at the end of FY23 was 187,149, an increase of 24.1% year-on-year.
Assets under management (AUM) as on March 31, 2023, stood at Rs 14,166.7 crore, out of which housing loans accounted for 69.9% and other mortgages accounted for 30.1%. Gross Phase III is 0.92%, 0.81% of 90+ DPD properties and 0.11% of up to 90 DPD properties, and Net Phase III is 0.68%.
The housing finance company said 87.8% of its borrowings came from term loans, assignments and NHB refinancing. 12.2% of borrowings came from debt capital markets (of which 78.2% came from development finance institutions such as IFC, CDC, and ADB), and no borrowing was through commercial paper. According to the filing, the company has a net worth of Rs 3,269.7 crore as on March 31, 2023.
Shares of Aavas Financiers have returned 78.64% over the past five years, beating the benchmark Nifty50 index, which returned 70.67% over the same period. Since the beginning of 2023, the stock has lost 22.84%, resulting in a marked underperformance compared to the benchmark Nifty50 index, which returned 0.1% during the same period.