Aptus Value Housing Q2 Results Review - Spreads Stable; Asset Quality Strengthens: Dolat Capital
Spreads were largely stable in H1 FY23, aided by moderation in cost of fund, even as yields were impacted by rising HL share.
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.
Dolat Capital Report
Aptus Value Housing Finance India Ltd. reported a strong quarter with robust assets under management growth at 7% QoQ and 33% YoY, decline in gross non-performing asset by ~30 basis points QoQ to 1.47%, stable 30 plus days past due at 6.3% (down 20 bps QoQ), and industry best return on asset at 7.6% (calculated).
Total expected credit loss provisions have been raised to 1% of advances (0.9% earlier), with doubling of provision cover against stage-II assets (at 6%) versus previous quarter.
Spreads were largely stable in H1 FY23, aided by moderation in cost of fund, even as yields were impacted by rising HL share. Employee costs increased sharply (up 38% YoY) led by higher variable component owing to robust disbursements (up 43% YoY).
We continue to build in superior return on asset metrics at ~7% led by its industry best margins, contained opex and limited credit costs.
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.