May 5, 2023

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

Housing Development Finance Corporation (HDFC) announced on Thursday a year-on-year (YoY) increase of nearly 20% in standalone net profit for the quarter ending in March 2023, amounting to Rs 4,425.50 crore, surpassing the estimated amount of Rs 3,807 crore according to an ET NOW poll. The total revenue from operations also grew by 35.6% YoY to Rs 16,679.43 crore. Meanwhile, the net interest income (NII) for the quarter surged by 16% YoY to Rs 5,321 crore.

HDFC's board approved an interim dividend of Rs 44 per share for FY23. The company's capital adequacy ratio was 24.3% as of March-end, and the liquidity coverage ratio was 127.7%. Furthermore, for FY23, HDFC recorded an 18.2% YoY growth in net profit, reaching Rs 16,239.36 crore, and a 25.5% increase in revenue, amounting to Rs 60,177.07 crore.

In the quarter ended March, HDFC reported a profit of Rs 4 crore on the sale of investment and investment properties, compared to a loss of Rs 97 lakhs in the same period last year.

As of March-end, Housing Development Finance Corporation's (HDFC) assets under management (AUM) were over Rs 7.2 lakh crore, an increase from the previous year's Rs 6.54 lakh crore. On an AUM basis, the individual loan book saw growth of 17%, while the total loan book saw growth of 11%. To comply with banking regulations ahead of the merger with HDFC Bank, HDFC stated that certain non-individual exposures had been run down. The company saw a marked improvement in asset quality, with annualised credit costs at 25 basis points. The net interest margin stood at 3.6%, with spreads at 2.29%, according to a statement. As of March 31, gross individual non-performing loans stood at 0.75%, down from 0.99% the previous year. Gross non-performing non-individual loans stood at 2.90%, down from 4.76% the previous year. HDFC has set aside a total provision of Rs 12,145 crore for loans, equivalent to 1.96% of the Exposure at Default (EAD). In the quarter, HDFC transferred loans worth Rs 9,340 crore to HDFC Bank. In the preceding 12 months, loans sold amounted to Rs 36,910 crore compared to Rs 28,455 crore in the previous year. HDFC's shares rose over 2% to reach a 52-week high of Rs 2,859.90 in response to the strong numbers and dividend.


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