Godrej Capital (GCL), the financial subsidiary of Godrej Industries (GIL) was started in 2020.
Since then it has been providing home loans in select geographies. It is the holding entity for Godrej Housing Finance (an HFC) and Godrej Finance Limited (an NBFC).
The business is ramping up nicely and GIL has now shared the following key plans about GCL.
- GCL had assets under management (AUM) of Rs 10,500 cr as at March 31, 2024. At August 2024 end, the loan book stood at about Rs 13,000 cr and plans to end FY25 with a book size of Rs 17,000 cr. It aims to reach a book size of Rs 50,000 cr by FY28.
- Originally, the FY 24 target was Rs 12,000 cr book. The actual performance therefore is lesser than expected but nothing structurally significant.
- FY28 target initially was Rs 35,000 cr which has now been revised to Rs 50,000 cr
- Currently, the company has a Rs 7,000 cr exposure to the MSME sector, and Rs 5,000 cr to the housing business. The company is planning to start offering affordable housing loans by the end of this fiscal.
- In FY 24, the net profits were Rs 56 cr. FY 25 is expected at Rs 175 cr.
- The Company claims a solid asset quality with near zero NPAs on the secured book and under 1% on the unsecured book.
- Godrej group will have have invested equity of Rs 3,000 cr in GCL by FY 25 end. Rs 2,500 cr is already invested and balance Rs 500 cr will come in the next couple of quarters.
- GCL will be looking to get listed over next 3-4 years. i.e., by FY 28.
GIL currently has a total mcap of Rs 40,000 cr. Given it’s investment value across businesses and potential unlocking when GCL gets listed, one can expect significant returns over the next 3-4 years.