Mitesh Mahesh Pujara, Executive Director, India Home Loan Limited

“Gujarat, Maharashtra will remain our focus states while Rajasthan may add to our revenues.”

Feb 13, 2017 11:02 IST India Infoline News Service

Mitesh Mahesh Pujara serves as a promoter at India Home Loan Limited and has been its Executive Director since August 19, 2015. Mr. Pujara served as Non-Executive Director at India Home Loan Limited from August 21, 2008 to August 19, 2015. Mr. Pujara has expertise in the field of Finance, Capital & Stock Market Operations. He holds a Bachelor of Commerce and has been a key contributor to the company's growth in the home loan segment.
India Home Loan Limited (IHLL) is a Housing Finance Company (HFC) which offers retail home loan products in the affordable housing segment. Under this product, loans are offered to the customers for purchasing homes, home improvement, and home extension and construction of a dwelling unit on an owned plot of land. India Home Loan Limited, formerly known as (MHFCL) Manoj Housing Finance Company Ltd was incorporated on December 19, 1990 under the Companies Act, 1956 in Maharashtra. In 2009, the name of Manoj Housing Finance Company Ltd was changed to India Home Loan Limited. India Home Loan Limited is a BSE listed company, which came out with an IPO (Initial Public Offering) in 1995 to augment its long-term resources to meet the business needs of housing finance and to enhance its borrowing capacity by improving its net worth. Presently, the company operates from branches in urban, semi-urban and rural areas of Maharashtra and Gujarat from its own offices, DSA (Direct Selling Agents) and business partners.
With all the real estate and housing finance companies having received a big boost from the Finance Minister in the last Union Budget, how are you planning to exploit this opportunity?

We are already addressing the affordable housing segment and have a strong presence in this market in Gujarat. While, in Gujarat, our focus remains on major cities like Ahmedabad, Vadodara and Surat, in Maharashtra, the cities under our focus include certain pockets on the outskirts of Mumbai and also places like Dombivali, Kalyan, Bhiwandi and Jalgaon which  expand further to the adjacent areas where major developments in real estate are taking place. Being a leading player in this segment, I must say we will aggressively pursue our targets through our network of DSAs across the country, mainly in the western States and directly with the developers of the affordable housing segment. Toeing the line of the central government, our contribution will remain significant in this segment in the next three to five years to begin with.

With most banks lowering lending rates, can you shed some light on the likely impact it would have on reducing India Home Loan's capital cost?
Overall, 1 - 2 % has been the impact, owing to reduction in rate of interest in the broader market. However, I must tell you here that the government initiative (CLSS) in passing on subsidy on the interest will have a significant impact on the interest cost reducing it by 4 - 6 % per annum and this is going to encourage the aspiring home-buyers as well as the players in the real estate market. We can also tell you this will strengthen business of companies like us.
Most of the financial institutions are finding their way to the housing finance sector, do you see any threat to your company because of this boom? What are the major challenges you face in this business and how do you plan to combat them?

Competition from a larger group is a threat but the market is too big and we are still a growing player and do not see this affecting us significantly. The home loan segment as you are aware has been expanding rapidly and lots of people in their thirties are buying homes. So there is adequate space for each of the players in this segment, be it the bigger ones or the smaller ones. Also, note that the expansion in the smaller segment is equally fast, rather faster than the larger segment. We have enough space to play and this will help in strengthening our topline in the next one to two years.
How will JM Financial, as an investor help the company in scaling up your existing housing finance business?

Their present infusion in equity capital and the possible future infusions as the company grows will certainly help us in consolidating our position. This is a big and significant development in our company.

Apart from housing finance, do you have any plans to diversify your business in other lending segments of finance? 

We are focused only on home loans, LAP and construction finance to developers of affordable housing projects and for now we wish to stay focused on these core areas where we have expertise. Expansion or further spread, as you may say, will come at a later stage. Now is the time to make our mark more significant in the home loans segment.
Do you have any plans to expand the company’s target regions other than Maharashtra and Gujarat? Do you have any plans to spread wings beyond your existing presence?

In the immediate future, we will continue to focus on these two states, Gujarat and Maharashtra only while we have already started exploring markets in various cities in Rajasthan. So while we strengthen our presence in western India, gradually at a later stage, we may opt for entering into northern Indian states, like Rajasthan.
Do you have any plans to change your capital structure? At what rate are you expecting your loan book to grow in the calendar year 2017? Can you share some insights on your financials and outlook?

As capital infusion takes place, our capital structure may undergo some changes but the present promoter group would continue to manage the affairs. We expect to grow from Rs 32 cr to about Rs 48 cr by March 2017, greater than Rs 200 cr by March 2018 and close to Rs 350 cr by March 2019.
What is your message to your shareholders?

The company is on the growth path and growing stronger. We can assure you of strong organic growth during the next two years.

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