Star Housing shares rise 7% after a 220% jump in PAT in March quarter

Shares of Star Housing Finance rose more than 7 per cent during the early trade on Monday after the company reported a manifold jump in the net profit for the quarter that ended on March 31, 2023, on a year-on-year (YoY) basis.

Star Housing Finance reported a 220 per cent rise in the profit after tax (PAT) at 2.62 crore for the March 2023 quarter, which was Rs 0.81 crore in the same period previous year. On a sequential basis, its net profit surged 35 per cent from Rs 1.94 crore in the December 2022 quarter.

The NBFC reported a 125 per cent increase in the total income to Rs 12.5 crore in Q4FY23 from Rs 5.61 crore in the Q4FY22. Its total income in the preceding quarter stood at Rs 9.95 crore.

Shares of Star Housing Finance surged 7 per cent to Rs 52.90 on Monday, following the announcement of results. However, the stock gave up its gains partially to trade at Rs 50.43 at 11.30 am on Monday. The scrip had settled at Rs 49.37 crore in the previous session.

However, the stock has delivered a return of 125 per cent in the last one year from its 52-week low of Rs 23.56 on April 22, 2022. The stock has been flat in the last three months, while is marginally down in the last six-month period. The company had announced a bonus in 1:1 ratio after a stock split 1:2 ratio on December 16, 2022.

For the year ended on March 31, 2023, the company's net profit zoomed a 1,020 per cent to Rs 6.98 crore from Rs 0.63 crore in the year-ago period. Its total income from operation increased about 92 per cent to Rs 37.24 crore from Rs 19.57 crore during the period under review.

The gross loan book: has increased 136 per cent YoY inching towards Rs.250 crore as of March 31, 2023 . Its Gross NPA stood at 1.68 per cent and net NPAs stood at 1.25 per cent, as of the given date. During the year Star Housing Finance has doubled its physical presence to now 14 branches.

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