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Tuesday, September 27, 2022

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Net Profit Up 22%, Misses Estimates

Housing Development Finance Corp.’s first-quarter profit rose on higher core income and lower provisions.

Net profit rose 22% year-on-year to Rs 3,669 crore in the quarter ended June, according to its exchange. Analysts polled by Bloomberg had estimated a net profit of Rs 3,883.5 crore.

Net interest income for the quarter rose 7.8% from a year ago to Rs 4,447 crore. Total revenue rose to Rs 13,240 crore, up 13.6% year-on-year.

Assets under management rose 17% from a year ago to Rs 6.71 lakh crore. After the sale of loans, HDFC’s total advances portfolio stood at Rs 5.81 lakh crore as of June 30. Individual loans, excluding the loans sold, were at Rs 4.47 lakh crore, up 19% year-on-year. Non-individual loans on the book rose 4.7% to Rs 1.28 lakh crore.

Net interest margin for the quarter stood at 3.4%, compared with 3.5% as of March and 3.7% a year ago.

Asset quality for the quarter improved, with gross non-performing asset falling 13 basis points sequentially to 1.78%. Credit costs remained stable at 0.33%, on a quarter-on-quarter basis. The housing finance company expected credit loss charged to the statement of profit for the quarter stood at Rs 514 crore, down 25% from a year earlier.

Gross stage 3 assets stood at Rs 12,293 crore, down 4.5% quarter-on-quarter. This included individual loans worth Rs 5,040 crore and non-individual loans worth Rs 7,253 crore. These are accounts where repayments are due for more than 90 days. HDFC carried a provision cover of 53% against stage 3 assets.

Shares of HDFC rose over 2.1% intraday but erased some gains after the results were announced to trade 0.75% higher as of 2:27 p.m. That compares with a 1% rise in the benchmark Nifty 50.

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