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SRG HousingQ4 FY23

SRG Housing Q4 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹156P/E: 7.2Market Cap: ₹245 CrSector: Finance

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1
  • SRG Housing Finance plans 100% growth by expanding into 3-4 new states.
  • Target AUM (Assets Under Management) of Rs. 1000 crores in 3-4 years.
  • Business model to remain the same to achieve this growth.
  • Disbursement expected around Rs. 250-300 crores annually, maintaining Q4 run rates.
  • New branches (15 planned for FY24) will contribute to growth, with ongoing expansion into new geographies.
  • Existing and new branches collectively show strong disbursement growth.
  • Liquidity and funding are well-managed with 22-23 lenders and Rs. 300 crores readily available.
  • Credit rating expected to improve with AUM growth, potentially lowering borrowing costs slightly.
  • Confident growth outlook driven by post-pandemic rural demand revival and strong, experienced management team.

See what SRG Housing management said on margin guidance — free account, 30 seconds.

Fundraise plans

Yes
  • The company currently has no immediate plans for raising equity in the current year.
  • Equity raise may be considered if a long-term investor offers good terms, but only beyond a loan book size of Rs. 600 crores.
  • For FY24, fund raising via debt is not an issue, with 22-23 existing lenders including banks and financial institutions.
  • The company can easily raise Rs. 300 crores in funds through debt.
  • Liquidity is maintained at around Rs. 100 crores on the balance sheet, with undrawn sanctioned limits available to support disbursements.
  • No equity plans are currently scheduled until the loan book crosses Rs. 600-650 crores.
  • Expansion to new states and branches will likely be supported mainly through debt funding.

See what SRG Housing management said on order book — free account, 30 seconds.

Capex plans

Yes
  • Currently, SRG Housing Finance Limited does not have immediate equity raising plans, as per Vinod Jain's comments on maintaining liquidity and funding growth through existing resources.
  • The company plans business expansion by opening 10 to 15 new branches annually, especially in new states like Karnataka, Telangana, Tamil Nadu, and Maharashtra, indicating capital deployment in branch infrastructure.
  • Vinod Jain mentioned that if a suitable long-term equity investor appears, they may consider raising good equity at a favorable rate, but there is no urgency until the loan book reaches around ₹600 crores.
  • The company has invested in technology upgrades, including a new headquarters in Udaipur and implementing SAP systems for underwriting and collections.
  • Overall, capital investment is focused on branch expansion, technology enhancement, and maintaining liquidity with ₹100 crore on the balance sheet.
  • There are no explicit large-scale future capital expenditure announcements beyond branch growth and operational scaling.

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Margin guidance

Category 3
- SRG Housing Finance plans to achieve an AUM of Rs. 1000 crores in 3-4 years, indicating strong future growth. - The company expects 100% growth if they expand into 3-4 new states. - The business model will remain the same to achieve this growth. - Confidence is high due to the company's strong capital position, experienced team, and recovery from past difficult times. - Margin improvements and cost efficiencies are expected with increased scale and productivity in new and old branches. - Credit rating upgrades could reduce borrowing costs by 0.25–0.50 basis points, positively impacting profits. - Earnings growth is expected to follow disbursement and AUM growth, supported by stable net interest margins (~11%). - No immediate plans for equity raise before reaching Rs. 1000 crores AUM; liquidity management is being optimized. Overall, SRG Housing Finance projects solid expansion in earnings and profitability aligned with substantial asset growth over the next 3-4 years.

Order book

Yes
- The company did not explicitly mention a current or expected orderbook or pending orders during the call. - Focus is on housing finance business expansion with increased branches (62 branches in FY23 up from 37 last year). - Disbursement in FY23 was Rs. 190.73 crore with a growth of 124%, and Q4 disbursement grew by 136%. - Expected disbursement guidance for FY24 is around Rs. 250 to 300 crore. - Emphasis is on organic growth via new branches, targeting an AUM of Rs. 1000 crore in 3-4 years. - No mention of any orderbook as such since the company operates in the housing finance sector, focusing on loan disbursement and AUM growth rather than order-based contracts. In summary, the company’s growth trajectory is based on expanding loan book and branches rather than orders or pending contracts.

How does SRG Housing rank vs peers in Finance?

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What SRG Housing's management said in earlier quarters

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