This smallcap HFC tanks up to 8% as Q3 net profit slips over 45% on year

Shares of GIC Housing Finance ended 6 per cent lower at Rs 253.3 apiece as the housing financier posted weak quarterly results for October-December period. At the day's low, the stock hit a price of Rs 247.85 , tumbling up to 8 per cent.

For the December quarter, the housing finance company (HFC) recorded a 45.52 per cent decline in consolidated net profit to Rs 35.65 crore as against Rs 65.44 crore in the same period of the previous fiscal. 

The total revenue from operations at the company also registered a decline from Rs 280.8 crore in Q3FY23 to Rs 261.1 crore. 

Net interest income, a difference between the interest expended and interest earned, also reported a 16.4 per cent decline on year to Rs 82.88 crore in the recently concluded December quarter as against Rs 99.09 crore reported in the year-ago period.

Earlier, as part of the further harmonisation of HFCs with non-banking finance companies (NBFCs) regulations, the RBI decided to move HFCs towards the regulatory regime on deposit acceptance as applicable to deposit-taking NBFCs.

GIC Housing Finance is primarily engaged in granting housing loans to individuals and to entities engaged in construction of houses or flats for residential purposes.

Shares of GIC Housing Finance in the last 1-year have given a decent return of over 41 per cent.