SRG HousingQ4 FY24
SRG Housing Q4 FY24 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 2
Margin
Category 3
Fundraise
Yes
Order
Yes
Capex
Yes
3 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 2- FY25 target disbursement: ₹400 crores (average monthly ₹30-35 crores)
- FY25 target AUM: ₹700-780 crores (growth of about ₹200 crores from FY24)
- FY26 target AUM: Expected to cross ₹1,000 crores
- Expansion plan: Opening 25-30 new branches in FY25, including Maharashtra, Karnataka, Tamil Nadu, Telangana, Andhra Pradesh
- Branch network target: 90 branches in FY25; over 100 branches by FY26
- Equity raise planned in FY25: ₹50-100 crores to support growth and new branches
- Borrowing mix stable with a debt-to-equity ratio currently 3x, with potential leverage up to 10x as per approvals
- Efficient scaling expected to reduce operating expenses growth relative to top-line growth as fixed overheads are absorbed
- Monthly disbursement volumes currently equivalent to past annual disbursements, indicating strong ramp-up potential
See what SRG Housing management said on margin guidance — free account, 30 seconds.
Fundraise plans
Yes- In FY24, SRG Housing Finance Ltd raised ₹227.80 crores, with 40% from public sector banks and the rest from financial institutions. Total borrowings stood at ₹491 crores.
- The company plans to raise additional equity of ₹50-100 crores in FY25, with board approval already in place and expects to close this within one to two months.
- The current debt-to-equity ratio is 3x; the company aims to maintain leverage up to 10x with SBI approval, while RBI allows up to 12x for housing finance companies.
- Up to ₹1000-1500 crores of equity funding is considered sufficient for current growth plans, reducing the need for additional equity raising until AUM reaches ₹1500-2000 crores.
- Borrowing mix as of now: 49% banks, 39% financial institutions, and 12% National Housing Bank.
- No immediate plans for further equity raises until current targets are met.
See what SRG Housing management said on order book — free account, 30 seconds.
Capex plans
Yes- SRG Housing Finance Ltd is in full expansion mode with plans to open 25 new branches.
- New branches are being established primarily in Maharashtra, Karnataka, Tamil Nadu, Telangana, and Andhra Pradesh.
- The company has finalized locations and recruited expert teams, including branch managers, for these expansions.
- The Mumbai corporate office has been set up as a Pan-India business expert hub to monitor these expansions.
- Branch expansion timeline: 15 new branches planned for Q2 FY25 and 10-15 branches in Q3 FY25.
- Each new branch typically takes 4-6 months to break even; some existing branches reach breakeven within 6 months.
- There is a plan to raise ₹50-100 crore in equity during FY25 to support business growth and expansion.
- The company is investing in scaling up its teams and infrastructure but expects operational cost efficiencies as AUM grows.
Track SRG Housing — get its next earnings analysis in your feed
Margin guidance
Category 3- FY24 Profit Before Tax: ₹26 crores, up from ₹21 crores last year (23.8% growth).
- Net Interest Income increased from ₹44 crores to ₹59 crores (34% growth).
- EPS rose from ₹13.12 to ₹15.87 in FY24 (21% growth).
- Target AUM for FY25 is ₹780 crores, up from ₹601 crores in FY24, indicating continued portfolio growth.
- Disbursement target for FY25 is ₹400 crores, up from ₹283 crores in FY24, implying top-line growth.
- Expect operating cost growth moderated with scaling: doubling AUM needs only 10%-20% team size increase, leading to better expense ratios.
- Plans to raise ₹50-100 crores equity in FY25 to support growth up to ₹1,000-1,500 crores AUM without immediate additional equity.
- Loan book mix stable with 70% housing loans; LTV conservatively maintained to manage credit risk.
- Overall, management expects steady profit and earnings growth supported by branch expansion, portfolio growth, and operational scaling.
Order book
YesThe document does not explicitly mention a current or expected order book or pending orders for SRG Housing Finance Ltd. However, relevant points about their business pipeline and targets include:
- FY25 disbursement target: ₹400 crores.
- Expected increase in Assets Under Management (AUM) by around ₹200 crores, targeting ₹700 to ₹780 crores.
- Plans to open 15 new branches in Q2 and another 10-15 in Q3 across Maharashtra, South India, and other states.
- New branches to start operations in Q2 and Q3, with break-even expected within 4-6 months.
- Target AUM for FY26 is expected to cross ₹1,000 crores.
- Equity raise planned between ₹50-100 crores in FY25 to support growth.
- Current branches contributing actively to the order pipeline, with rapid ramp-up in disbursements.
No direct mention of order book or pending orders beyond these business expansion and disbursement targets.
How does SRG Housing rank vs peers in Finance?
Pro featureThisSRG Housing
Rev 2Mar 3
How does SRG Housing rank in Finance?
Compare SRG Housing against every Finance company (Q4 FY24) on revenue, margins and earnings-call signals.
Continue your research
What SRG Housing's management said in earlier quarters
Others in Finance this season
- Muthoot Finance (Q1 FY27)
Despite competitive intensity, Muthoot Finance has demonstrated growth; Q1 saw about 6% growth (~INR 9,000 crores). Key concall takeaways from Muthoot Finance…
- Mahindra & Mahindra Financial Services Ltd (Q1 FY27)
The company has already seen wheels AUM growth at 11%-12% and non-wheels at 28%-30% in recent quarters. Key concall takeaways from Mahindra & Mahindra…
- Akiko (Q1 FY27)
Personal loans are growing fastest, with 5%-10% month-on-month growth. Key concall takeaways from Akiko Global Services Ltd's Q1 FY27 earnings call — and how…
- Max India Ltd (Q1 FY27)
Care Homes occupancy is improving steadily (e.g., Bannerghatta from 37% to 41%), with potential expansion plans in late FY27. Key concall takeaways from Max…