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Gruh Finance: For the long haul - Views on News from Equitymaster
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Gruh Finance: For the long haul
Nov 7, 2016

Gruh Finance announced its results for quarter ended September 2016. The institution grew its income from operations by 18% YoY and the profits by 20% YoY during 1HFY17. Here is the detailed analysis of the results.

Performance Summary
  • Income from operations grew 18% YoY in 1HFY17 with 22% YoY growth in loan book and 23% YoY in retail home loans. Disbursements grew by 11% YoY. Consequently, the net interest income grew by 18% YoY.
  • Net interest margins remained stable at around 3.9% despite pressure on yields.
  • Net profit for 1HFY17 increased by 20% YoY despite higher provisioning costs. Other expenses remained in control, with cost to income ratio at around 18%.
  • Gross NPAs have remained stable at 0.6% while the net NPA ratio was at 0.3%.

    Rs (m) 2QFY16 2QFY17 Change 1HFY16 1HFY17 Change
    Income from operations 3,118 3,674 17.8% 6,062 7,137 18.0%
    Interest Expense 1,987 2,351 18.3% 3,889 4,592 17.8%
    Net Interest Income 1,131 1,323 17.0% 2,173 2,545 18.3%
    Net interest margin (%) 4.0% 3.9%
    Other Income 0 0 0 0
    Other Expense 256 273 6.6% 430 475 21.7%
    Provisions and contingencies 72 92 27.8% 192 216 4.2%
    Profit before tax 803 958 19.3% 1,551 1,854 19.6%
    Tax 285 338 18.6% 530 632 19.6%
    Profit after tax/ (loss) 518 620 19.7% 1,021 1,222 19.6%
    Net profit margin (%) 16.6% 16.9% 17.0% 17.2%
    No. of shares (m) 363.5
    Book value per share (Rs) 24.7
    P/BV (x)* 13.2

    *Book value as on 30th September 2016

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