PSU Company The Housing and Urban Development Corporation (HUDCO) is strategically positioning itself to capitalize on India's escalating infrastructure investments. The company aims to expand its loan book to ₹1.5 lakh crore by the next fiscal year, reflecting a robust growth trajectory.
Ambitious Loan Book Expansion
HUDCO's current loan portfolio stands at approximately ₹1 lakh crore. The corporation has set an ambitious target to increase this to ₹1.5 lakh crore in the upcoming fiscal year, with a long-term goal of reaching ₹3 lakh crore by March 2030. This expansion strategy underscores HUDCO's commitment to supporting large-scale infrastructure projects across the country.
Financial Performance and Profitability
In the third quarter of the fiscal year 2024-25, HUDCO reported a net profit of ₹735 crore, marking a 41.6% increase from the previous year. The company's revenue also saw a substantial rise, reaching ₹2,760 crore—a 37% year-on-year growth. This impressive financial performance is indicative of HUDCO's effective operational strategies and its pivotal role in financing urban development initiatives.
Strategic Fundraising Initiatives
To support its expansion plans, HUDCO is exploring various fundraising avenues. The corporation plans to raise $400 million through Japanese yen-denominated loans by the end of the current fiscal year, aiming to benefit from lower borrowing costs. Additionally, HUDCO has increased its borrowing plan for the financial year 2024-25 from ₹40,000 crore to ₹55,000 crore, reflecting its proactive approach to securing necessary capital for future projects.
Focus on Pradhan Mantri Awas Yojana (PMAY)
HUDCO continues to play a significant role in the Pradhan Mantri Awas Yojana (PMAY), the government's flagship housing scheme. The corporation's loan assistance under PMAY is projected to reach ₹1 lakh crore within the next three to four years, highlighting its dedication to enhancing affordable housing infrastructure across India.
HUDCO's strategic initiatives and robust financial health position it well to meet India's growing infrastructure demands. The corporation's focus on expanding its loan portfolio, coupled with its active participation in government housing schemes, underscores its commitment to urban development and economic growth.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Readers are advised to conduct their own research or consult financial experts before making any investment decisions.
