Dalal Street Investment Journal – July 20, 2019

DSIJ.in JULY 22 - AUG 4, 2019 I DALAL STREET INVESTMENT JOURNAL (^77)
beneficiary due to the implicit support from the government. It
showed robust growth of 33 per cent in FY19 revenues in
comparison to FY18. Its revenue for the year stood at
5547.64 crore as compared to4171.36 crore. Its net profit
grew by 17 per cent over FY18 to 1180.15 crore. The growth in HUDCO’s overall financial performance already shows signs of strong revival due to government's implementation of its projects. In case of general finance, the sector saw a mixed trend with eight companies seeing negative sales growth for FY19, while 7 companies witnessing decline in revenue growth percentage over the last fiscal. Market leader Bajaj Finance continues its robust performance with 45 per cent revenue growth in FY19. Its revenue during the year stood at18485.09 crore as against
12744.41 crore in the earlier fiscal. Bajaj Holdings & Investment though reported positive revenue growth over the last fiscal, it still ended with negative income growth. Its net income declined to221.05 crore in FY19 as compared to
`269.87 crore in FY18.
Going ahead, the NBFCs are expected to increase securitisation
to manage and control rising demand and liquidity situation.
The RBI recently announced liquidity management which will
ensure that NBFCs will hold cash and liquidity investment in
the balance sheet, which can also have some impact in the
margins in the near future. The HFCs can be expected to
continue to struggle along with vehicle finance companies,
which have also seen the impact on account of slower auto
industry growth. We expect that on the back of rising demand
in the power sector with various resolutions, the sector will lead
to higher growth numbers. The acquisition of REC by PFC is
expected to create synergy and boost loan growth at more than
12 per cent normal run rate. The total AUMs of all the
companies covered by us has grown at the rate of 16 per cent/5
per cent YoY/QoQ, while PAT has grown at the rate of 45 per
cent YoY.
Going ahead, the NBFCs are expected to
increase securitisation to manage and control
rising demand and liquidity situation. The RBI
recently announced liquidity management
which will ensure that NBFCs will hold cash
and liquidity investment in the balance sheet,
which can also have some impact in the
margins in the near future.
20.98%
13.83%
9.42%
45.04%
1.68%
15.46%
-10.00% -6.77%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
HDFC Ibulls Housing
Finance
DHFL Bajaj Finance Bajaj Holdings &
Investment
Shriram
Transport
Finance
Company
Reliance Nippon
Life Asset
Management
YoY Net Income growth