HUDCO FY25 Net Profit Jumps 28% To ₹2,709 Cr, Plans To Tap Japanese Market To Raise $2 billion

Mumbai: State-owned Housing and Urban Development Corporation (HUDCO) has announced a 28 per cent (y-o-y) jump in its net profit at Rs 2,709.14 crore for the fiscal year ended March 31, 2025 as compared to Rs 2,116.74 crore recorded for FY2024.

The results indicate the company’s effective cost management and operations efficiencies. The company also declared a final dividend of Rs 1.05 per equity share for FY25, subject to shareholder approval.

The company has reported a 3.93 per cent rise in its consolidated net profit at Rs 727.74 crore for Q4 FY25 as against Rs 700.16 crore in the same period of last year.

“Our financial results are reflective of our strategic initiatives as well as the support of all stakeholders, and being a government company with lowest levels of net non-performing assets, debt-equity and comfortable compound annual growth rate, is envisaged to play a catalytic role in financing infrastructure beyond housing for creating assets for Viksit Bharat,” HUDCO CMD Sanjay Kulshrestha told media persons.

He said the company is planning to raise around $2 billion through overseas borrowings in FY26 by tapping the Japanese market through a mix of ECBs and bonds.

In the second quarter of FY26, the company plans to raise $500 million through ECBS, which also includes a bond series. Both will be in yen-denominated terms. From overseas borrowings, it may also look at the possibility of issuing social bonds in the Japanese market this fiscal year.

Nearly 80 per cent of the company’s total borrowing is from the domestic bonds and loans. Of the Rs 65,000 crore that HUDCO plans to raise, it will raise about Rs 1,000 crore through 54EC capital gains bonds and Rs 5,000 crore through five-year zero coupon bonds.

CMD said that the initiatives taken during FY25 have already begun to yield results, as “our weighted average incremental cost of borrowing has reduced from 7.01 per cent last year to 6.75 per cent currently.

Total revenue from operation rose 32.46 per cent to Rs 10,311.29 crore from Rs 7,784.29 crore in 2023-24. The growth reflects strong demand for diversified housing and infrastructure products and successful market penetration. Loan book YoY grew from Rs 92,654 crore to Rs 1,24,828 crore, recording an increase of nearly 35 per cent over the previous year.