SRG Housing Finance Limited — PPTs, 02-05-2025: Investor Presentation

1. Financial Highlights:

AUM increased to ₹759 Cr from ₹601.6 Cr last year, with Q4 disbursements at ₹106 Cr and new approvals of ₹115 Cr. Interest income rose to ₹134 Cr for the year, and total income reached ₹154.5 Cr. Profit after tax improved to ₹24.4 Cr, supported by a net interest margin of 10.6%. GNPA held steady at 1.84%, net NPA improved to 0.61%, and capital adequacy remained strong at 67.5%. The cost-to-income ratio increased to 65.85%, book value per share stands at ₹188.54, and RoAE is 2%.

2. Strategic Initiatives & Growth Drivers:

Focus remains on rural housing finance with small-ticket loans (~₹9.4 lakh average) and low LTV (~47%), targeting underserved non-salaried clients across 7 states via 90 branches. Digital platform “SRG Srajan” streamlines loan processes, cuts turnaround times to around 15 days, and reduces documentation burden, enhancing operational efficiency.

3. Business Developments:

Branch network expanded from 62 to 90, with borrowing diversified between 46% bank loans and 48% financial institution funding. Equity infusion of ₹80 Cr in FY25 further strengthens the balance sheet. Partnerships are broad, involving 32 lenders including major public and private banks.

4. Market Position & Competitive Advantage:

SRG’s deep rural penetration into new-to-credit and underserved segments, customized risk and geo-based collateral policies, and strong women co-borrower involvement (>95%) differentiate it in the rural housing finance space. A lean operating model and stable asset quality support competitive strength.

5. Investor Implications:

Growing AUM, effective risk controls, and digital enhancements signal positive growth potential in a niche rural housing market. A well-diversified funding base and steady credit quality reduce execution risks, though rising cost ratios and rural economic factors warrant close attention. The focused strategy offers scalable, sustainable expansion opportunities.