Housing and Urban Development Corporation Limited (HUDCO), a Public Financial Institution, having 75% Govt. ownership, with the mandate of providing long-term financial assistance to Housing and Urban Infrastructure sectors has played a pivotal role in addressing housing and infrastructure challenges.
HUDCO has recently been conferred with Navratna Status and is now amongst top 20 Navratna Central Public Sector Enterprises (CPSEs) in the Country to have been accredited with this status.
HUDCO has set out an ambitious loan disbursement target of ₹ 32,000-35,000 crore for the current financial year i.e. FY 2024-25, with sizeable amount of disbursements being targeted in first two quarters. Despite a challenging environment, HUDCO reported impressive financials:
– Highest ever Loan Sanctions/Commitments of Rs. 82,387 crore, an increase of 235% YoY
– Highest ever loan disbursements of Rs. 17,987 crore, an increase of 112% YoY
– Highest ever Net Profit of Rs. 2116.74 Crore vis-à-vis Rs.1701.62 Crore for FY23, thereby registering a 24% increase on Year on Year (YoY) basis
– Reduction in Cost of Borrowings by 36 basis points from 7.46% for FY 23 to 7.10% in FY 24
– Significant reduction in Net NPAs from 0.52% for FY 23 to 0.36% in FY 24 which is the best in the Industry
– Over 5 times increase in Market Capitalization from Rs.10,000 crore in March, 2023 to over Rs.53000 Crore in May, 2024.
– HUDCO’s robust pipeline includes funding for roads, hospitals, airports, metro, affordable housing, power, energy, water, and waste management.
– The company aims to raise its loan book to ₹1.5 lakh crore in two years, with a long-term goal of reaching ₹3 lakh crore by 2030.
Conclusion: HUDCO’s financial performance indicates a strong growth trajectory, with a significant increase in disbursement, sanctions, and Net Worth.
The reduction in cost of funding and robust pipeline positions the company for continued success. Achieving the ambitious disbursement target will further boost HUDCO’s bottom line, which has already seen a 24% growth YoY. The substantial increase in infrastructure outlay signals significant growth prospects, aligning with HUDCO’s mission to supplement efforts of Government of India for creation of sustainable and resilient Infrastructure, in line with Viksit Bharat 2047.
