Revenue and Profitability Trends
Over the four-year period ending March 2025, GIC Housing Fin’s net sales exhibited a gradual decline from ₹1,149.78 crores in March 2022 to ₹1,078.91 crores in March 2025. The total operating income mirrored this trend, reflecting a slight contraction but maintaining a robust scale above ₹1,000 crores annually. Notably, the company reported no other operating income during this period, indicating reliance on core business activities for revenue generation.
Operating expenses, excluding depreciation, decreased significantly from ₹216.40 crores in March 2022 to ₹151.21 crores in March 2025. This reduction was driven by a marked decline in other expenses, which fell from ₹167.62 crores to ₹76.64 crores, while employee costs rose steadily from ₹48.20 crores to ₹74.26 crores, reflecting possible investments in human capital. Manufacturing expenses remained minimal throughout.
Operating profit before other income (PBDIT) remained strong, peaking at ₹988.28 crores in March 2023 before settling at ₹927.70 crores in March 2025. Including other income, operating profit showed a similar pattern, with a high of ₹1,002.28 crores in March 2023 and ₹937.73 crores in March 2025. Interest expenses hovered around ₹700 crores annually, with a slight dip in March 2025, which also included an exceptional item of a ₹13.06 crore charge.
Profit before tax (PBT) fluctuated, reaching a peak of ₹289.85 crores in March 2023 before declining to ₹206.70 crores in March 2025. Correspondingly, profit after tax (PAT) followed this pattern, with ₹213.25 crores in March 2023 and ₹160.42 crores in March 2025. Earnings per share (EPS) reflected these changes, peaking at 39.6 in March 2023 and moderating to 29.79 by March 2025. The PAT margin remained relatively stable, around 15%, except for a spike to 19.32% in March 2023.
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Balance Sheet and Asset Management
GIC Housing Fin’s shareholder funds have shown consistent growth, rising from ₹1,510.76 crores in March 2022 to ₹1,964.84 crores in March 2025. Total reserves increased steadily, indicating retained earnings and capital accumulation. The company maintained a stable equity capital base of approximately ₹53.85 crores with a face value of ₹10 per share.
Total liabilities decreased from ₹11,801.90 crores in March 2022 to ₹10,702.88 crores in March 2025, reflecting a reduction in total debt from ₹10,347.48 crores to ₹8,727.31 crores. Short-term borrowings followed a similar downward trend, suggesting improved debt management. Non-current liabilities also declined, supporting a healthier financial structure.
On the asset side, total assets contracted from ₹11,801.90 crores to ₹10,702.88 crores over the same period. Non-current assets decreased moderately, while current assets fluctuated, with cash and bank balances notably falling from ₹481.80 crores in March 2022 to ₹58.82 crores in March 2025. Intangible assets under development declined significantly, possibly indicating completion or write-offs of projects.
Book value per share improved consistently, rising from ₹280.39 in March 2022 to ₹364.67 in March 2025, signalling enhanced net asset value for shareholders.
Cash Flow and Operational Efficiency
Cash flow from operating activities demonstrated volatility, with ₹1,285 crores in March 2022, declining to ₹522 crores in March 2024. Cash flow after changes in working capital turned negative in March 2024, indicating tighter liquidity conditions. Investing activities showed mixed results, with outflows in March 2023 but positive inflows in March 2024. Financing activities consistently reflected outflows, suggesting debt repayments or dividend payments.
Net cash inflow/outflow figures reveal a net outflow of ₹33 crores in March 2024 and a larger outflow of ₹408 crores in March 2023, contrasting with a positive inflow of ₹390 crores in March 2022. Closing cash and cash equivalents dropped sharply from ₹477 crores in March 2022 to ₹35 crores in March 2024, highlighting a more conservative cash position.
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Summary and Outlook
Overall, GIC Housing Fin has maintained a solid financial footing with consistent revenue generation and profitability over the last four years. Despite some fluctuations in profit margins and cash flow volatility, the company’s balance sheet strength has improved, evidenced by rising shareholder funds and reduced debt levels. The steady increase in book value per share further underscores the company’s value creation for investors.
While operating profit margins have remained robust, the dip in net sales and cash reserves suggests areas for cautious monitoring. The company’s ability to manage expenses effectively and sustain profit after tax margins around 15% reflects operational resilience. Investors may find the company’s fundamentals appealing, particularly given its stable earnings and improving financial structure.
Looking ahead, maintaining disciplined cash flow management and leveraging growth opportunities will be key for GIC Housing Fin to enhance shareholder returns and navigate sector challenges.
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