SRG Housing Q1 FY22 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
Yes
Order
Yes
Capex
No
2 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 2- Targeting Rs. 500 crore loan book in FY2022, indicating significant growth from Rs. 320 crore as of FY2021.
- Disbursement expected to increase to around Rs. 50 crore per quarter, totaling approximately Rs. 150 crore in the remaining three quarters of FY2022.
- Anticipate faster growth due to easing COVID-19 impacts and better business reopening post-lockdowns.
- Current branches sufficient to meet business targets; no immediate branch expansion planned, focusing on maximizing existing branches' productivity.
- Equity raising planned in advance to support expansion but not immediately required in FY2022.
- Confident of achieving targets barring major disruption from subsequent COVID-19 waves.
- Long-term expansion plan remains unchanged with strong focus on rural and small business segments.
- Robust collections and loan repayment rates expected to sustain steady revenue growth.
See what SRG Housing management said on margin guidance — free account, 30 seconds.
Fundraise plans
Yes- SRG Housing Finance plans to raise equity for expansion to support growth beyond Rs. 500 crore AUM.
- No immediate equity raise is planned for FY22, but they will look for equity infusion in advance before actual need arises.
- Current leverage is moderate, so the company is cautious about premature equity raising.
- A fund raise of approximately Rs. 150 crore through borrowing was done in FY 2021.
- Funding lines and liquidity remain strong, with no immediate debt fundraising concerns.
- Future equity raising will align with business growth and funding requirements over the next 3-4 years.
See what SRG Housing management said on order book — free account, 30 seconds.
Capex plans
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Margin guidance
Category 3- SRG Housing Finance targets a loan book of Rs. 500 crore in FY2022, indicating strong growth aspirations.
- Disbursements in Q4 FY2021 were Rs. 37 crore with growth of 162% YoY; they expect to disburse approximately Rs. 150 crore over the next three quarters.
- Profit before tax for Q4 FY2021 was Rs. 5 crore (51% growth YoY); full-year PAT grew by 5% to Rs. 19 crore.
- EPS in FY2021 was Rs. 14.48, up from Rs. 13.82 in the prior year.
- Comfortable lending rates of 18-20% with stable NIM of ~12% expected to sustain profitability.
- Expansion plans focus on growth from existing branches, optimizing costs with minimal branch additions.
- Equity raise expected to support expansion but no immediate fund raising planned for FY22.
- Management confident of achieving targets if no severe COVID-19 disruptions, with market reopening key for growth momentum.
Order book
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What SRG Housing's management said in earlier quarters
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