ICRA improves long-term rating of Aptus Value Housing


Aptus Value Housing Finance India said the ICRA rating agency had raised the company’s long-term rating to ‘[ICRA] AA- (Stable) ‘of'[ICRA] A + (Stable) ‘.

ICRA said the rating action takes into account Aptus’ enhanced capital profile and track record of maintaining healthy profitability and asset quality. The ICRA takes note of the new equity injection of Rs 500 crore following the initial public offering (IPO) in August 2021, which strengthened the capitalization profile. The current capital profile would comfortably support the growth of the portfolio, which is expected to be around 25-30% per annum, over the medium term.

Aptus gross level 3 (GS3) remained at 0.8% in September 2021 compared to 0.7% in March 2021 (1.1% in June 2021) and the restructured standard portfolio stood at 1.5 %. ICRA notes the increase in softer bucket delays after the Covid-19 pandemic, while slips to harder buckets have been contained.

The rating continues to take into account prudent internal controls and underwriting policies that support asset quality performance. Aptus had increased its overall provision coverage ratio (PCR) to 0.7% of gross book value (GCA) in September 2021 from 0.4% in March 2021.

The rating takes into account the limited seasoning of Aptus’ portfolio, the high share of non-real estate loans, the moderate borrower profile and its geographically concentrated operations, with Tamil Nadu and Puducherry together constituting 50% of the total portfolio in September 2021, despite improvement from 72% in March 2017.

Aptus Value Housing Finance India, based in Chennai, is a housing finance company (HFC). Its target borrowers are low to middle income segments. Its target geographic areas are the southern states, with an emphasis on rural and semi-urban areas. Aptus is largely focused on independent clients with little or no documentary evidence of their income and with limited access to finance from banks and large HFCs.

On a consolidated basis, the company announced a 30.6% increase in net profit to Rs 85.26 crore on a 29.4% increase in total income to Rs 203.24 crore in Q2 FY22 compared to Q2 FY21.

Aptus Value Housing Finance shares ended up 1.50% at Rs 342.60 yesterday.

Powered by Capital Market – Live News

(This story was not edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting-edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor


Comments are closed.