Hinduja Leyland Finance Ltd (HLFL), the non-bank finance company (NBFC) of the Hinduja group, expects its gross income in the current fiscal year to reach around Rs 2,000 crore. The company also hopes to double its assets under management by year-end, despite challenges in the commercial vehicle market.
Commenting on the company’s growth prospects, S Nagarajan, Executive Vice President of HLFL, said, âWe are doing fine. We will end the year with 20,000 crore in assets under management, up from around Rs 10,000 crore last year. The AUM during the period ended in September of this year stood at approximately Rs 15,000 crore.
In terms of gross income, the company expects around Rs 2,000 crore by the end of this fiscal year. The company’s turnover in the previous fiscal year was approximately Rs.1486 crore.
Almost 40 percent of its portfolio is in commercial vehicles, around 10 percent each in two-wheelers, home loans and three-wheelers, and the remainder in used vehicles and other segments. It also finances tractors and construction machinery.
The wide exposure guarantees steady growth. This exercise, the two-wheeler performed well, the three-wheeler maintains momentum and the activity of commercial vehicles was also good, Nagarajan said.
âThe company has a large portfolio. We are a small company and the market is big. For us, growth is not a problem at all.
We already have a footprint at around 1,500 locations in India, âhe said.
“The company may consider raising funds early next year, although details must be approved by the board before commenting further on it,” he added. Funds would be raised to meet growth capital needs. HLFL also has a wholly owned subsidiary in the area of ââaffordable housing finance and in the first year of operation this year its assets under management were around Rs 700 crore.
The Hinduja group increased its stake in the company as Everfin Holdings sold part of its stake on Thursday. According to reports, Everfin is part of the Everstone group. Nagarajan declined to comment on the development.
Ashok Leyland, the flagship company of the Hinduja group, has reached an agreement with Everfin Holdings to buy 4.68% of the released share capital of HLFL from the latter, with an investment of approximately Rs 225.4 crore. Hinduja Ventures has announced its intention to acquire a 0.43% stake in HLFL from Everfin Holdings for a total acquisition cost of Rs 20.61 crore. After the sale of the stake, Everfin would own around seven percent of the company’s shares. As of March 31, 2017, Everfin Holdings held 13.99% of the capital of HLFL.
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