We are keeping close eye on the NBFC’s as quarter of our funds are invested in this sector. Here are the numbers of DHFL recent results:

DHFL Q2 – 2017 % Q2 – 2016 % 1H – 2017 % 1H – 2016 %
Revenues 2,166.65 100% 1,810.73 100% 4,124.93 100% 3,462.97 100%
EBT 352.22 16.26% 277.34 15.32% 655.13 15.88% 538.68 15.56%
Net Profits 232.61 10.74% 180.37 9.96% 434.02 10.52% 353.64 10.21%

 

Looking at the above table it looks DHFL margins had improved. They had seen growth of 19.66% on QoQ basis in their revenues and 28.96% in their profits. Comparing half yearly results, revenues had grown by 19.12% and profits by 22.73%.

If we compare these numbers with Gruh Finance, they look impressive. But as soon we compare company’s margin, Gruh Finance looks far better business then DHFL. If we would be the shareholders of this business (Valueoperations do not own any shares of DHFL), we would be worried about its asset quality. Gross NPA’s of the company stand at 0.96% or Rs 630 crore.

Aziz Dodhiya is the chief investment officer for the Valueoperations funds which operates in the Indian market as an FPI (Foreign Portfolio Investor). We do not offer any personal advice to buy or sell any stocks and the views that are shared by Aziz might not incline to your personal investment strategy and this is the reason we tell you to take professional advice before going ahead with our views.