Aptus Value Housing Finance Shows Strong Financial Performance in Q1 FY25
Aptus Value Housing Finance India Limited, a leading Housing Finance Company, has announced its financial results for the quarter ended June 30, 2024. The company has demonstrated robust growth and operational efficiency during this period.
Profit and Business Growth
The company reported a remarkable 21% year-on-year increase in net profit, amounting to Rs. 172 crores in the first quarter of FY25. This growth can be attributed to the company’s focus on business expansion, stable asset quality, and enhanced productivity. The management is thrilled with the solid performance and remains optimistic about the future.
Continued Asset Growth and Branch Expansion
Aptus Value Housing Finance has achieved an impressive Asset Under Management (AUM) growth of 27% year-on-year. This growth has been supported by the addition of 36 branches across existing and new states, including Odisha and Maharashtra. The company’s improved productivity and increase in Average Ticket Size (ATS) have contributed to this substantial achievement. Looking ahead, the company aims to maintain a rapid AUM growth rate of approximately 30% in the coming quarters and years, reinforcing their position in the housing finance market.
Enhancing Operational Efficiency
During the quarter, the company implemented a new Mobile first lead management software system. While this resulted in temporary impact on disbursements in April 2024, the following months of May and June witnessed a promising recovery with a significant 35% growth compared to the corresponding period. The new software system has been a major advancement for Aptus Value Housing Finance, streamlining operations, enhancing service delivery, minimizing bounce rates, optimizing collection productivity, ensuring regulatory compliance, and improving overall efficiency. This technological upgrade will prove to be a pivotal change for the company’s future success.
Focus on Cost Management
Aptus Value Housing Finance maintains its strong position as a productivity-driven organization with a clear focus on expenses. The company takes pride in its ability to consistently maintain one of the lowest cost to income/assets ratios in the affordable housing finance industry. This exemplary cost management allows the company to achieve sustained growth and optimize returns for its stakeholders.
Key Financial Ratios
As the company plans to accelerate growth through additional borrowings, it expects improved leverage from the current level. Consequently, the Return on Assets (RoA), currently standing at 7.73%, is expected to decline slightly but will remain around the commendable 7% mark. In the same vein, the Return on Equity (RoE), currently at 18.13%, is set to exceed 21%, cementing Aptus Value Housing Finance as the leader in the affordable housing finance industry.
Strong Financial Standing and Liquidity
As of June 30, 2024, Aptus Value Housing Finance showcased a strong financial position with sufficient liquidity of Rs. 907 crores, including undrawn sanctions of Rs. 520 crores from various banks. The company’s net worth exceeded Rs. 3,818 crore, validating its robust financial standing and ability to navigate the housing finance market confidently.
With a solid start to the financial year 2025, Aptus Value Housing Finance aims to build upon its strong performance and remain at the forefront of affordable housing finance in India. The company’s focus on expansion, operational efficiency, and consistently favorable financial results are sure to propel its success in the coming periods.
