SRG HOUSING FINANCE LTD (NSE: SRGHFL) Q4 2025 Earnings Call dated May. 05, 2025
Corporate Participants:
Vinod kumar Jain — Managing Director
Unidentified Speaker
Analysts:
Kush Tandon — Analyst
Kevin Shah — Analyst
Aditya Sharma — Analyst
Aniket Pihankar — Analyst
Presentation:
Operator
We’ll just we’ll just wait for one or two minutes before we get the call started should I just get this meeting is being recorded. Ladies and gentlemen, I welcome you all to the Q4 and FY ’25 post-earnings Conference Call of SRG Housing Finance Limited today on the call from the management, we have with us Mr Vinod Kumar Jain, Managing Director; and Mr Ashok Modi, Chief Financial Officer.
As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risks and uncertainties. Also a reminder that this call is being recorded.
I would now request the management to detail us about the business and performance highlights for the quarter and year ended 31st March 2025, the growth plan and vision for the coming year, post which we will open the floor for Q&A. Over to you, sir.,,
Questions and Answers:
Vinod kumar Jain
Hello in quarter-four or financial year ’25 Earnings Conference Call May.. Financial year ’25 May company INR759 crore AUM target achieved currently ahead. Joky Mara targets 750,000, financial year 25 May, 7.4 growth disbursement INR305 crore, was INR284 crore. Loan book 26% growth QSR, 259 crore REI, Juki was INR601 crore.
Financial year ’25 total branches, 90 OBE Pitchless Almet 67. Profit before-tax, INR30 crore, Almet INR26 crore Than, paid INR24 crore Sal INR21 crore Tha, paid my Salke, 14% key growth UI. Total income, 22% key growth, INR155 crore, Joki is INR127 crore thing. Net interest income INR72 crore, is INR59 crore.
Net-worth INR264 crore Ray, was INR159 crore thing. EPS Rupe 17, vers Rupe 15th. Financial ’25 May housing loan 73% or loan against property 27% RI or salaried loan 26% or self-employees loan 74%. Hamari 100% loan book, property cash not secured ahead. Housing loan book, average ticket size, 8 lakh, average LTV 44% high.
Gross NPA 1.84% dry, Joki Pitchley was 2.29% Tha or net NPA 0.61% dry, Joki Pitchle was 0.69% Tha. Company thus a healthy spread maintain, net interest margin, gross loan book 10.63% RA, financial 25 total, INR274 crore fundraised KI, lenders say INR194 crore, this may 30% bank say back or INR80 crore equity Madham KI.
Company outstanding borrowing INR584 crore Ray Sal INR491 crore. This may 46% bank say 48% FISA or 6% National Housing Bank say Rahe. Company liquidity is strong II, company by liquid funds, INR55 crores. LM position be comfortable, ECK,, Board thank you sir. All those who wish to ask a question may use the option of raise hand in case you are unable to raise hand you can put your message in the chat box so chat my question I have from Mr Aditya a few quarters before, we used to do an ROA of 3.5%, but lately due to higher-cost income ratio and higher credit cost of 60 bps, our ROA has reduced to 3%. What is your outlook on this going ahead The ROE you have not 3.17 hat. Come the region here what can I come with equip equity outlook Kalia. ROA return on assets was 33% 3% Y. So Age thought process of Abhi, Equity Kamouva, expansion plan or business Bodega or paid Bodega to Akka ROE is Akka with Char crores, Joe Lihi, taken-up or next year and How is the competitive intensity in Rajasthan What is our right to win in the market Can you put some clarity that will be very helpful as the market seems very unpenetrated. Hans of finance, Housing Finance competition to Asanic second competition like in Hamja, Kamkar urban to competition or company. Rural or semi-urban, Abhibi is on a competition. Business company, like in of competition, the business, here or business here be BB high? So market seems underpenetrated. So are we witnessing increased focus from peers on the competitions. Rajasthan say 40% business and and,. So Akka portfolio business is Chayer business be business to.
Operator
We’ll take the next question from Kush Tandan. Kush you can go-ahead.
Kush Tandon
Sir, good afternoon, sir. Good. Yeah, interest-rate to Hamari Co fixed book pay, Nuksan, NIM level pay or opex net. So those are going to say up, sir interest-rate hopefully come over. So sir, Uspek yard interest-rate same interest-rate customer interest-rate and NHB key guideline may business other loan against property car. This challege percentage come, do 3% extra.
A housing finance company car, 70% portfolio HL Housing Glob. To, present a difference other than that. Like in, Ratha or, set-up. Yeah. Dusra, ticket sides ticket side,. So ticket side, operation costs. So operation cost may go. So net-to-net up on to Mara business. So Hamako architectual operation costumari hit, 80% say Chi come buddy who support next year is your costing, who costing.
Sir,, sir, lower rate JCK to, sir. Amar Samar, average housing loan joy of a portfolio a, say he maintain Utah.,. Customer rate insensitive customer here?
Vinod kumar Jain
Little Omar average, sir. 10% housing loan may come or, average portfolio 20%. The NIM I say 8 od. Of the estimate, be expansion,, branches open okay, branches, running Tiger or again. Do you have a pet and in Burnai, but Napka back. Sir, Aglay, those are — Tin AUM growth guidance they’ve buying a sir. Loan portfolio ki.,,.
Next year may be Hajar ticket. To Sara next year OpEx join, OpEx. B, manager higher team management team Leily, in India, Bombay, Man Office Tha, the Corporate Office Jubi Chuki. This percent employe Tampka Jada, Baki fixed-cost,.
Kush Tandon
Exactly, sir, and, those are made sort of or opex. Hopefully those are sir, AUM growth or PAT growth, should PAT growth should be more than AUM growth, sir?
Vinod kumar Jain
Yeah. 100% is Dono focus here, Dono here or Abhi,, Jobi, Chijay, complete. Rating be plus or JC Ajar Thopna rating BA minus, who’s rating Thopna, bank for or Abneco might be cost JC rating, but like it won’t be borrowing cost would have benefitable like that.
Ultimately, Char have here. Sir, he called Akri Mehra, geography may, sir, could you underwriting my credit cost may could, could you customer,, customer was taken-up.
So with Team local hot., property, property,, be legal to illegal waiting illegal property. Jastate is a guy who a document about and to legal issue, technical Amar is properties or there were proper of the document. So what Jada up pay government keeps fast two business.
May be a, Maharash may be mortgage loan to slept with the pet. So could be I think already restaurants, Maga, capable of the past team Sir, to motor sir again,, UMP, Chartaka ROA J broadly JGs.
Kush Tandon
Okay, sir. Thank you, sir. All the best, sir.
Vinod kumar Jain
Thank you, Kush.
Operator
We’ll take the next question from Kevin Shah. Kevin, you can unmute and go-ahead, please.
Kevin Shah
Yeah, thank you. Sir up to Dankari the SRG INR1,000 crore AUM cross or balance shearing a increasing cost with AUM growth — with-profit growth. If you sir upka profit growth would have stopped last quarter sir number-one, APO growth be currently here, ticket sales be or had. So Abdonut or Equi here.
So Akka growth — 90 branches currently here are 90 branches here to target time, Chalice business, Tigana, Manke Sarka, Abka, Panshu, disbursement already, you,. So growth system, infrastructure team, yes complete here. About growth, we are the issu.
Our car profit, Abka, ticket size, other rate cometi operation cost to become. So impact me at 8%. Okay, branch expansion continue Jose is you currently 90 there?
Vinod kumar Jain
No, our targeting 100 branch guy, Nabi branch currently, Agaram, loan book,, Target Hujay, Branch Bo with 100 branches from and so then in cost-to-income ratio I got 60% to 65%. Branch of expansion occurring in Amaraju ,. Nichilare. Take our next expansion Branch in.
Kevin Shah
Okay, okay. Thank you.
Vinod kumar Jain
We have good program thanks, Kevin.
Operator
We’ll take the next question from Aditya, you can unmute and ask the question, please.
Aditya Sharma
Hello. Hi, sir. Sir, Amari, credit cost around B basis-point. A B though quarter say 3 is other year-around 60 basis-points. So particular reason I’m stress and geographiestres,, yeah, up or I’m or question EBITA, you have Stage 2, percentage Kivo moved correct quarter-on-quarter. So it took credit, with 1.82 here.
Our second is just one of 0.46% okay to asset quality may EB stress. Okay, so recoveries of suppose of course, be is canno support. 100% surfaces in. Company called surfacing guidelines strong or ethani body the UVA. Will be up in other like that. It can be coffee improvement okay.
Sir administrations to be supporting Militatha DM welcome recovery major delicate your but I got delivery come back very fast today Dotin Jan Kai Sawal Kluke. FY ’26 AUM disbursement or Brancha target?
Vinod kumar Jain
Sawal, Dotin AUM disbursement of Branch as a target scope financial year ’26 against. From our disbursement with Rega, from my branches, you have been a big branch, I have been a big branches. But next year may target here. What target you, INR2 crore Rega, Mara Panshu disbursement, branches — Branch, the one branches.
Aditya Sharma
That will be a your commitment to continue those alga. Say all complete. Like in, Salo,, Branch of Tim, umito Achihe take by the Hoja or Target product. All right, sir. Sir, to say, they are asking, how are you planning to diversify your geographical presence, especially beyond Rajasthan?
Vinod kumar Jain
Is diversified already 100% Rajasthan, Piram Gujarat Chal ukia, Gujaratum Maharashtray, Maharashtam, Karnataka May, Karnataka Sam, Andhra May,, Tamil Nadu to use those with Tamil Nadu, the portfolio already diversified. Is March is quarter last quarter for Karen to Qataru 4th disbursement, already Hamara, 7% Mara — Maharasht disbursement.
A, Andhra or Amar yeah, sir. Aglasawal, how do you differentiate yourself from larger housing finance company or LBFCs targeting the affordable housing segment okay sir rupal Chika is now at older branches what are what was average branch level disbursement rate per annum average branch level disbursement per branch level or disbursement rate, like estate wise.
So estate Marapura,,. So 90%, 29% with disbursement in KI, 47% Gujarat Makam KI, Maharashtra Kam of those over 2% come cannot come at 2.72% year Marapura portfolio disbursement. Okay, sirwal Akash Pathad said M3 Investment Private Limited recently-acquired 9.17% stake in SRG housing through a preferential allotment.
What do they bring to the table M3 Investments onboard Akay. So subsidiary held by subsidy help,,, Puri, Vistra, or, that was called long-term vision company. So I want to thank you,, or long-term to support or or Equity, is after, the, Group of to. The expansion of Karapay, expansion of, to Majup top business.
Aditya Sharma
Thank you, sir.
Operator
We’ll take the next question from Mr Anike Si. Aniketh, you can unmute and ask your question.
Aniket Pihankar
Thank you so much. Sir, first question is that you have recently done 3 fundrais. How does this help your network and credit borrowing cost? And will this be good enough to reach your INR1,000 crore target?
Sorry, actual guideline NHB car or 12 time car., NOFR got 12 times the car leverage like in industry May Park 5 times is for 264, Paj. So we have or Equities needed. Okay.
Can you throw some lights on the senior management hiring, which will help you to scale-up as well as to grow in the net geographies?
Vinod kumar Jain
Total Mahab also pen to Team have already grow chronically or expertise, just my business car upna smooth say smoothly business or a. So where’s the team to Bharash
Aniket Pihankar
, okay, sir or listen to experience the low Bara team here, Finance Industry. So just can you just detail more about what kind of people have you hired?
Vinod kumar Jain
So collection credit may have Pandha Salga. MR. Sanjay, National Recovery Head,,, Pura Head Programmer Technology Operation and Product at Hara product as an industry mayor. I am I just control Abhishek product or communications Banker HR uddha Salse or is Tra, Independent Director would be Banker Head. Director I have a banker head who is CAD, which complies with the Company Secretary to Pura, Boardibi Kapora, systematic or Lu industry bank. That’s it from my side.
Aniket Pihankar
Thank you so much, sir.
Unidentified Speaker
Sir,, Kumar Chiga. There is a slowdown in the economy. Is it also affecting our company?
Vinod kumar Jain
Was this question. Of finance Company Salu from, the finance industry isl Kutna DHFL,, Piratna, Koronagya, Korona Kabad may be call microfinance company may, personal loan volume company interest so open, Karth, Jose, Grow, to,, just finance company, like in marketa.
Housing company, rural business,, rural demand with Higue, co-economic impact business or regular business hotel. So business of Agar Financial market Chi, impacta had two battle againco business.
Kevin Shah
My follow-up question Kevin Shah say.
Vinod kumar Jain
Kevin Shah, you can unmute and ask your question.
Kevin Shah
Thank you, sir. And sir, witho come over and I’m a LCR right now, sir, improvement like E&M early few quarters on your existing loan book,, loan book may impact NASCA, reported car. Next quarter you have impact there.
Give me a marath of fixed-rate come of fixed after the Kam benefit to be able to do.
Vinod kumar Jain
Okay. Thank you, Kevin.
Operator
We’ll take the next question from Anand. Anandj, you can ask your question please.
Unidentified Speaker
Mundra, you can unmute and ask your question Mr if you’re unable to unmute you can drop your question in the chat box as meanwhile is the first question from Anand Mundra in the chat box is what is the stage-1 and 2%? Stage-1 and stage 2%.
Vinod kumar Jain
Anand, can you elaborate a bit more this question, please?
Unidentified Speaker
Sir, Stage 1 on-time was 89.23% on zero, so 30 days major high or 3.5%. 60 days may, 3.62%, 3.62% 90 by 1.76% and 1.84%. Mix by borrowing through NCD. And what is the cost of borrowing presently? So 49% Joe. If I say here or 48% bank say it’s 10%, NHB say our cost Leni or also Housing Finance company, the short-term came NCD., Mullet NCD NCD partner or NCD Mile to major.
Vinod kumar Jain
And equal question here you are Akash Pathad say, are you seeing any demand issue for higher-growth And can we plan performance marketing through Instagram in Tire 2 and Tire 3 cities even though your YouTube channel is good.
But there is no attraction coming there loan Ramp or YouTube employ him direct business, or venu marketing, NOPI Latka, venu marketing, which are the impactful like.
Our second Brancho, Branch ticket to Joe Instagram or business new Instagram or is linking to Instagram again
Unidentified Speaker
All right, sir. Another question, Arvind Kumar at Box. Will you open branches in Tamil Nadu and Telangana in financial year ’26?
Vinod kumar Jain
I mean your next job branch of level to next level 26 crores across, Tamil Nadio Telanganami Raglasawali here.
Operator
Is anybody else who wishes to ask a question please use the option of raise hand so since there are no further questions we’ll come to the end-of-the conference call.
Would you like to give any closing comments?
Vinod kumar Jain
Company or market Matam who market BHI, BHI., expansion Huaha or only number branches of Mara,, Mini Branch of, expansion Hamari, Jada Hogani, some branch productivity and focus currently. Has a rating value, Volta Diversify HIEA, State to go up at level pay — rating level pay Chi Jaha or hosting which other costs here.
Yet debit,, cost come. Ticket size,, two up your option cost come, take a new, interest Aka, percent come here. So Akka main power joy. Modal Bunay. Sadme, Abkar,, Jija. Thank you,.
Operator
Thank you, sir. Thank you to all the participants for joining on the call and thank you to the management team for giving us the time. This brings us