SRG Housing Q4 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
Yes
3 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 2- SRG Housing Finance aims to grow its loan book to Rs. 500 crore by the end of FY'23, targeting a 50% growth from Rs. 320-325 crore in FY'22.
- The company plans to expand to 50 branches by March, adding 4-5 new branches mainly in Rajasthan, Madhya Pradesh, and Gujarat.
- Expected quarterly disbursement run rate is Rs. 50 crore, indicating steady sales momentum.
- Business environment is improving post-COVID, with increased loan sanction and disbursement activities.
- Expansion includes a strengthened team with 100 new employees appointed in the last quarter to support growth.
- Collections are primarily electronic (95% via ECS/Online), ensuring operational efficiency.
- Management is cautiously optimistic, with growth dependent on market conditions and no major unforeseen hurdles like new COVID variants.
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Fundraise plans
Yes- The company has raised Rs. 167.40 crore during FY22 through debt, with 36% from banks, 43% from financial institutions, and 21% from National Housing Bank.
- Gearing is currently about 2.5x and is expected to increase to around 3.67x with recent funding of Rs. 115 crore.
- The management plans to raise equity only after the loan book reaches Rs. 500 crore.
- No immediate equity fundraising is planned; equity issuance will be considered post achieving the target loan book size.
- The company aims to achieve a loan book of Rs. 500 crore in FY23 and then look at equity funding to support further growth.
See what SRG Housing management said on order book — free account, 30 seconds.
Capex plans
Yes- SRG Housing Finance is currently in an expansion phase, focusing on branch and team growth.
- They have opened 9 new branches recently and plan to increase the total branches to around 50-51 by March.
- New branches planned: 5-6 in Madhya Pradesh, 3 in Rajasthan, and 3-4 in Gujarat.
- The company is building new teams and investing in technology and software development.
- Employee hiring is ongoing with approximately 100 new employees added in the last quarter.
- No explicit mention of large-scale capital expenditure, but investments in branch expansion, human resources, and technology indicate strategic growth capex.
- They plan to increase leverage (gearing) to about 3.67x (from current 2.5x), having already raised Rs. 115 crore last year for funding growth.
- Equity raising is planned once the loan book reaches Rs. 500 crore.
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Margin guidance
Category 3Order book
Yes- SRG Housing Finance Limited targets an AUM (Asset Under Management) of Rs. 500 crore by the end of FY'23.
- The company plans a quarterly disbursement run rate of around Rs. 50 crore, supported by branch expansion.
- They currently have 46 branches and plan to expand to about 50-51 branches by March, focusing on Rajasthan, Madhya Pradesh, and Gujarat.
- Disbursement in April-May 2022 is positive and comparable or better than the previous year, with sanctioned loans being disbursed.
- The business momentum is improving post-COVID, with new team appointments and technology enhancements supporting growth.
- No specific mention of pending orders; the focus is on achieving the Rs. 500 crore book size through ongoing disbursements and branch expansion.
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What SRG Housing's management said in earlier quarters
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