HUDCO hits upper circuit on strong Q4FY20 results

Housing and Urban Development Corporation Limited (HUDCO) announced its results for Q4FY20. On the basis of strong results, investors gained confidence as the company’s stock gained by Rs 5.55 per share on intraday basis, thus locking-in at its upper circuit of 20 per cent for the day.

HUDCO reported an increase of 87 per cent in its consolidated net profit to Rs 440.91 crore for Q4FY20 as against Rs 236.29 crore gained in Q4FY19. The total income rose by 27.25 per cent to Rs 1,900.40 crore in Q4FY20 from Rs 1,493.35 crore reported in Q4FY19.

HUDCO is involved in providing long-term finance for the construction of houses for residential purposes or financing or undertaking housing and urban development programmes in the country. In spite of the current gloomy economic conditions, the company reported an improvement in yield on loan to 10.34 per cent in Q4FY20 from 10.15 per cent in Q4FY19 though net interest margin declined to 3.65 per cent in Q4FY20 from 4.52 per cent in Q4FY19. Given the high share of government backed exposures, HUDCO has registered a strong portfolio growth with low credit risk.

The board of the company also recommended a final dividend of Rs 2.35 a share for FY20. Previously, it had also announced an interim dividend of Rs 0.75 per share.

On Monday, the stock of the company was last seen trading at Rs 33.40 per share as it gained by Rs 5.55 per share or 19.93 per cent and locked-in at its upper circuit to suspend trading for the day. The 52-week high is Rs 45.70 and 52-week low is Rs 18.05 on BSE.