June 25, 2024

Housing Finance Development

It's Your Housing Finance Development

HDFC Q4 Results: PAT jumps 20% YoY to Rs 4,426 crore, tops estimates; Rs 44/share dividend declared

Housing Development Finance Corporation (HDFC) on Thursday reported a nearly 20% year-on-year (YoY) growth in standalone net profit for the quarter ended March 2023 at Rs 4,425.50 crore. The net profit was above an ET NOW poll estimate of Rs 3,807 crore.

Total revenue from operations increased by 35.6% YoY to Rs 16,679.43 crore. Meanwhile, its net interest income (NII) for the quarter rose 16% YoY to Rs 5,321 crore.

The company’s board has approved an interim dividend of Rs 44 a share for FY23.

The company’s capital adequacy ratio as of March-end was 24.3%, and the liquidity coverage ratio was 127.7%. For FY23, HDFC reported an 18.2% YoY growth in net profit to Rs 16,239.36 crore, and a 25.5% rise in revenue to Rs 60,177.07 crore.

On the sale of investment and investment properties, HDFC made a profit of Rs 4 crore in the quarter ended March, compared with a loss of Rs 97 lakhs in the same period a year ago. Dividend income for the quarter was Rs 206.83 crore compared with Rs 128 crore a year ago. Fees and commission income rose to Rs 94.4 crore from Rs 78.3 crore a year ago.The tax outgo for the quarter was Rs 973 crore compared with Rs 922 crore a year ago.The company’s assets under management (AUM) stood at over Rs 7.2 lakh crore as of March end, compared with Rs 6.54 lakh crore in the previous year. On an AUM basis, the growth in the individual loan book was 17%. The growth in the total loan book on an AUM basis was 11%.Also Read: HDFC-HDFC Bank merger: What will change for HDFC home loan borrowers? Will home loan interest rates go down?

“On maturity, certain non-individual exposures have been run down to ensure compliance with banking norms in lieu of the impending merger with HDFC Bank,” HDFC said.

The home loan company saw significant improvement in asset quality, with the annualised credit costs for the quarter at 25 basis points.

The net interest margin came in at 3.6%, with spreads at 2.29%, it said in a release.

As of March 31, the gross individual NPLs stood at 0.75% of the individual portfolio, compared to 0.99% a year ago. The gross non-performing non-individual loans stood at 2.90% of the non-individual portfolio, compared to 4.76% a year ago.

HDFC carried a total provision of Rs 12,145 crore against loans as of March 2023. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 1.96%.

During the quarter, HDFC assigned loans amounting to Rs 9,340 crore to HDFC Bank. Loans sold in the preceding 12 months amounted to Rs 36,910 crore compared with Rs 28,455 crore a year earlier.

Reacting to the strong numbers and dividend, shares of the NBFC major extended their day’s gains and rose over 2% to hit 52-week high of Rs 2,859.90.