The lender reported net profit Rs 5,670.2 crore for the December quarter, a whopping growth of 233.3 percent year-on-year due to one-time gain after stake sale in life insurance business.
A large part of the fund raised will be invested in HDFC Bank, to the tune of Rs 8500 crore to maintain the stake in the bank, said Keki Mistry, VC & CEO, HDFC.
Profits in Q3 may have a post tax income of Rs 3,675 crore, which is a one-time gain from stake sale in HDFC Standard Life Insurance.
Net interest income during the quarter is seen rising 14.9 percent to Rs 2,640.2 crore compared with Rs 2,297.2 crore in same quarter last fiscal, according to average of estimates of analysts polled by CNBC-TV18.
In an interview to CNBC-TV18, Keki Mistry, VC & CEO of HDFC spoke about the results and the latest happenings.
"The stock remains a defensive long-term core holding, in our view. We maintains overweight rating on the stock with target price of Rs 1,700," JP Morgan said.
Analysts said if net interest margin comes above 3.75 percent (4.1 percent in Q4FY17), AUM growth above 15 percent (16.1 percent) and gross non-performing assets below 0.9 percent (0.79 percent) then that will be positive.
With RERA, the individual home buyer will get more confidence in buying a property, said Keki Mistry, Vice Chairman and CEO, HDFC.
Key things to watch out for would be net interest margin, asset under management (AUM) growth and asset quality.
Demonetisation is not purely the reason for the slightly slower demand for housing loans, says Keki Mistry MD & CEO of HDFC In an interview to CNBC-TV18.
Analysts say if net interest margin comes above 3.75 percent (against 3.8 percent in Q2), asset under management at 15 percent and gross non-performing assets below 0.85 percent (against 0.75 percent in Q2) then that will be positive.
India's largest housing finance company HDFC is expected to report a 13 percent growth in second quarter profit at Rs 1,812.4 crore on yearly basis, according to analysts polled by CNBC-TV18.
Key things to watch out for would be loan growth, asset quality and net interest margin.
Properties situated outside large cities have been a driving force for home financier HDFC, Vice Chairman and CEO Keki Mistry says.
No negative surprises from the results and the loan book to grow by 15-16 percent in FY17, Deven Choksey, MD at KRChoksey.
Net interest income, the difference between interest earned and interest expended, may grow 6 percent to to Rs 2,497 crore in January-March quarter compared to Rs 2,355 crore in same period last year due to slow growth in loan book.
In an interview with CNBC-TV18, HDFC Vice Chairman and CEO Keki Mistry said the company has witnesssed strong growth in its retail book -- above 20 percent -- and expects the segment to hold up well over the long term.
NII growth (up 6.8 percent) in Q2 was slowest in last 6 years that may continue in Q3 as well, feel analysts. They expect profit to be impacted by overall slowdown in growth and lower profit on sale of investments.
Analysts expected NII to grow 17 percent at Rs 2,197.2 crore for July-September quarter, but the Q2 NII stood at 6.2 percent year-on-year to Rs 2,076.2 crore.
Net interest income, the difference between interest earned and interest expended, may increase 17 percent to Rs 2,197.2 crore in quarter ended September 2015 compared to Rs 1,878.4 crore in same quarter last year.
The house has a buy rating on M&M Financial with price target of Rs 300 with a medium to long-term view, said Nischint Chawathe, Senior Analyst at Kotak Institutional Equities.
The sharp drop in HDFC‘s standalone profit growth to 1.2 percent in the first quarter of 2015-16 (ended June) is less a comment on the housing finance pioneer‘s lack of performance than an indicator of the sorry state of India‘s economy and its real estate sector.
Other income (non-interest income) is expected to fall over 50 percent year-on-year due to deferment of dividend from HDFC Bank to Q2. Other income in Q1FY15 grew by 40 percent Y-o-Y to Rs 482.2 crore.
Net-interest income is expected to fall by 14.9 percent quarter-on-quarter (up 14.8 percent year-on-year) to Rs 2003.5 crore, according to Emkay Global Financial Services.