Can Fin Homes Q2 Review - Getting Its Mojo Back; Healthy Loan Growth, Pristine Asset Quality: Motilal Oswal
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Motilal Oswal Report
Can Fin Homes Ltd.'s profit after tax grew 14% QoQ to Rs 1.24 billion in Q2 FY22.
Despite an in-line pre-provision operating profit of Rs 1.63 billion (up 7% QoQ), the profit after tax beat was driven by provision write-backs as a result of utilisation of Covid-19 provisions for the one time restructuring 2.0 restructured asset pool and for write-backs.
Gross non performing asset/net non performing asset stood at 0.78%/0.47%, with a provision coverage ratio of ~40%.
Can Fin Homes undertook net provision write-backs of Rs 62 million in Q2 FY22.
The company is our favored play among small housing financiers as it is getting back to its old ways of healthy growth without any undue pressure on spreads/margins.
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