Aptus Value Housing Finance Q1 Review - Sharp Improvement In 30+ Dpd; ECL Coverage Inched Up: ICICI Securities
Aptus Value Housing Finance Q1 - Sharp Improvement In 30 Plus Dpd; ECL Coverage Inched Up; RoA/RoE Of 8.9%/15.9%: ICICI Securities
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Aptus Value Housing Finance Ltd.’s Q1 FY23 earnings at Rs 1.19 billion (up 62% YoY / 8% QoQ) translating into 8.9% return on asset and 15.9% return on equities was better than expected.
With focused collection efforts, 30 plus days past due sharply improved to 6.48% in June 2022 (versus 9.91% / 12.98% in December 2021/March 2022) achieving this level sooner than expected.
Some forward flow into stage-III assets (1.75% versus 1.19% QoQ) and inch up in expected credit loss coverage resulted in marginally higher than expected credit cost at Rs 95 million (less than 75 bps).
Aptus Value Housing Finance's disbursements more than doubled YoY supporting assets under management growth of 7% QoQ / 30% YoY (versus 27% over the past three quarters) to Rs 55.2 billion. Optimising the borrowing cost (reflected in a decline in cost of funds), it has not yet hiked lending rates; net interest margins were stable QoQ at 9.17%.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.