Investors carried massive sell-off in PNB Housing Finance stock during Monday’s trading session, as the company witnessed weaker March 2020 (Q4FY20) quarter. PNB Housing posted a net loss of Rs242.1cr in Q4 vs. a net profit of Rs379.7cr in the corresponding period of the previous year.

PNB Housing’s profitability de-grew by 163.7% yoy primarily on account of higher provisions including Covid-19 provision of Rs471cr during the period previous year.

As for net interest income (NII), it plunged by 19.9% yoy to Rs488.1cr in the quarter from Rs609.7cr a year ago same period. Pre-provision operating profit was down by 23.1% yoy to Rs427.6cr versus Rs556.4cr of Q4FY19.

Meanwhile, net interest margin (NIM) stood at 2.61% compared to 3.18% of Q4FY19. Also, Gross Margin, net of the acquisition cost, for Q4FY20 was at 2.88% compared to 3.51% of Q4FY19.

Talking about Covid-19 impact on the result, PNB Housing in its financial audit report said, “Collections was an impacted area during the lockdown. The Company enhanced its collection efforts by using cross-functional teams however due to the lockdown various activities viz property possession, the auction, field collections etc. could not be completed.”

Further, PNB Housing highlighted that, Loan disbursements were impacted in the last 10 days of the lockdown period of March 2020. The disbursement for Q4FY20 was at Rs2,826cr and adjusting for lockdown, the disbursements in Q4 FY20 would have been around Rs3,725cr.

Here are some FY20 key highlights:

NII came in at Rs2,308.1cr versus Rs2,063.5cr, registering a growth of 12%.

Net profit declined by 45.8% yoy to Rs646.2cr from Rs1,191.5cr in Q4FY19. Adjusted for Covid19 provision the PAT for FY19-20 would have been approximately Rs1,010cr.

The Spread on loans for FY20 stood at 2.46% compared to 2.35% for FY18-19. Excluding the assignment income and other Ind AS adjustment i.e. as per IGAAP the Spread on loans for 2019-20 is 2.11% compared to 1.98% for FY18-19.

In the fiscal, NIM was at 2.98% compared to 2.93% of the previous financial year.

Disbursements stood at Rs18,626cr during FY19-20 compared to Rs36,079cr in FY18- 19. Retail disbursements de-grew by 35% yoy to Rs17,111cr during FY20, while Corporate Finance disbursements de-grew by 84% YoY to Rs1,515cr.

Further, the Asset under Management (AUM) was at Rs83,346cr in FY20 down by 2% from Rs84,722cr of FY19.  The AUM witnessed retail loans share being 82% and corporate loans being 18% of the AUM.

Loan Assets de-grew by 9% yoy to Rs67,571cr in FY20 from Rs74,023cr  as on March 2019.

Gross NPA at an AUM level is at  2.29% and 2.75% at Loan Assets as of March 2020. On the other hand,  Retail book GNPA stood at 1.25% and Corporate book GNPA stood at 8.18%.

PNB Housing says, presently, the Company is well capitalised and has maintained adequate liquidity. The Company also continue to raise funds from banks, refinancing from NHB and fixed deposits. The Company did not opt for a moratorium from its lenders and serviced its financial obligations promptly.

“There is no impact on internal financial controls due to the COVID-19 situation,” PNB Housing adds.

On Sensex, PNB Housing stock has nosedived to lower price band of Rs209.95 per piece down by 5% in early deals.

At around 11.30 am, the stock was performing at Rs211.75 per piece down by 4.19% on the same index.





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