HUDCO Ltd Q3 FY25 Earnings: Strong Revenue Growth and Profit Surge in Housing and Infrastructure Financing
HUDCO Ltd: Overview
The Housing and Urban Development Corporation Limited (HUDCO) is a public sector enterprise under the Ministry of Housing and Urban Affairs, Government of India. Established in 1970, HUDCO’s primary objective is to promote and finance the development of urban infrastructure and affordable housing in India. Headquartered in New Delhi, the company plays a critical role in supporting the government’s mission to address the nation’s housing shortage and improve urban infrastructure, it has over 21 regional offices and 11 development offices. HUDCO is a unique organization that focuses on financing housing projects and urban development across the country.
The company works closely with state and central governments, public sector organizations, and private developers to fund projects that improve living conditions and stimulate economic growth. With a focus on providing affordable housing to low and middle-income groups, HUDCO has contributed significantly to housing development, urban renewal, and infrastructural progress. The government initiative for this industry is 1 crore houses for urban poor and middle class. The housing and urban development sector in India is witnessing rapid growth, driven by urbanization, rising income levels, government schemes, and increased demand for affordable housing. HUDCO, with its expertise and strong financial backing, is well-positioned to leverage these opportunities and continue to play a pivotal role in meeting the housing and infrastructure demands of the country.
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HUDCO has distributed the highest-ever dividend payout of 41.5% since FY21. The company’s order book is strong, with urban infrastructure projects valued at ₹92,151 crore. In the first nine months of FY25, HUDCO raised ₹39,043.54 crore, marking a significant increase compared to ₹11,257.07 crore in the same period of FY24. Due to this substantial growth in business, HUDCO has revised its borrowing plan for FY25, increasing it from ₹40,000 crore to ₹55,000 crore. The company continues to focus on international borrowings, with initiatives including the establishment of a Global Medium-Term Note (GMTN) program for raising funds through international bond offerings. It is also exploring opportunities in other markets and considering the possibility of raising loans or bonds in USD or EURO. Additionally, HUDCO is setting up an internal control mechanism to manage currency risk.
A significant portion of HUDCO’s loan book, approximately 98.30%, is dedicated to loans to the government and its agencies. According to CARE Edge Research, the infrastructure industry is expected to see investments of ₹52,962 billion from FY24 to FY28. Under the Pradhan Mantri Awas Yojana (PMAY) Gramin 2.0, HUDCO is playing a key role in providing counterpart funding for the state’s share, with the goal of building 2 crore additional houses, benefiting approximately 10 crore people. The total outlay for PMAY 2.0 is ₹3 lakh crore, with ₹2 lakh crore from the Centre and ₹1 lakh crore from the States. HUDCO has established a dedicated department for PMAY 2.0 and is actively framing guidelines and holding national workshops with the Ministry of Housing and Urban Affairs (MoHUA) to improve outreach and implementation.
Business Segments
- Housing Finance: HUDCO’s primary business segment is housing finance, which includes funding for the construction of residential housing projects, especially for the economically weaker sections (EWS), lower-income groups (LIG), and middle-income groups (MIG). The company provides financial assistance to individuals, government agencies, and private developers to construct low-cost housing, ensuring that affordable housing options are available across urban and rural areas. The scheme ‘Housing for All’ and collaboration with many state governments, HUDCO facilitates the creation of affordable housings.
- Urban Infrastructure Finance: HUDCO is actively involved in financing urban infrastructure projects. These include the development of civic amenities, transportation systems, water supply, sewage, sanitation, and electricity distribution networks in cities and towns across India. HUDCO has many projects running in urban cities. HUDCO’s role in urban infrastructure development is crucial for improving the quality of life in urban centers, facilitating sustainable urbanization, and ensuring that basic services are available to a growing urban population.
- Project Development & Consultancy Services: HUDCO also offers consultancy services for urban planning, architecture, engineering, and project management. The company helps design and implement urban development projects, particularly those related to affordable housing, urban infrastructure, and sustainable city planning. Consultancy is provided to the central and state governments and HUDCO’s expertise in these areas allows it to provide valuable insights and solutions to improve the urban development landscape.
Subsidiary Information
- HUDCO Infrastructure Development Ltd (HIDL): HUDCO Infrastructure Development Ltd. (HIDL) is a wholly owned subsidiary of HUDCO. It focuses on the development and implementation of infrastructure projects in both the public and private sectors. It brings the gap between project planning and execution. HIDL is involved in a range of activities, including project planning, implementation, and management, with a special emphasis on urban infrastructure such as roads, water supply, sanitation, and public amenities.
- HUDCO Ventures Ltd: HUDCO Ventures Ltd. plays a significant role in raising funds for large-scale infrastructure projects and enhancing the reach of HUDCO’s financial services in new markets. Company explores the financial models and the partnership with housing and development sectors. It helps HUDCO partner with private developers and other public sector entities, facilitating the expansion of housing and urban development projects across India.
- HUDCO Rural Housing Ltd: HUDCO Rural Housing Ltd. also facilitates partnerships with state governments and local bodies to implement various rural housing schemes, providing affordable housing options and ensuring that underserved communities have access to necessary infrastructure. This subsidiary supports HUDCO’s broader mission of contributing to housing and infrastructure development at the grassroots level and helps for improving living conditions.
- HUDCO Securities Ltd: HUDCO Securities Ltd. is a subsidiary that manages and participates in the issuance of securities, including bonds, for financing HUDCO’s housing and urban infrastructure projects. This subsidiary helps raise capital through the issuance of long-term bonds, providing a means for HUDCO to fund various housing and urban development projects at competitive rates.
Q3 FY25 Earnings
- Revenue of ₹2760 crore in Q3 FY25 up by 37.1% YoY from ₹2013 crore in Q3 FY24.
- Financing Profit of ₹924 crore in this quarter at a margin of -33% compared to -34% in Q3 FY24.
- Profit of ₹735 crore in this quarter compared to a ₹519 crore profit in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 2013 | 2760 | 7082 | 7829 |
| Interest | 1313 | 1762 | 4507 | 4961 |
| Expenses | 12 | 73 | 279 | 134 |
| Financing Profit | 688 | 924 | 2296 | 2734 |
| Financing Margin | 34% | 33% | 32% | 35% |
| Other Income | 10 | 10 | 4 | 119 |
| Net Profit | 519 | 735 | 1701 | 2117 |
| NPM | 24.7% | 26.6% | 24.1% | 27.1% |
| EPS | 2.6 | 3.7 | 8.5 | 10.6 |