HDFC Q1 PAT seen up 18% to Rs 999 cr
Housing finance company HDFC is expected to report a growth of 18% year-on-year in its profit after tax of Rs 999 crore for the quarter ended June 2012, according to CNBC-TV18 estimates.
July 11, 2012 / 14:30 IST
Housing finance company HDFC is expected to report a growth of 18% year-on-year in its profit after tax of Rs 999 crore for the quarter ended June 2012, according to CNBC-TV18 estimates.
Net interest income is likely to spike 28% to Rs 1,274 crore in the first quarter of financial year 2012-13 as against Rs 998 crore in a year ago period. Steady Earnings Net interest income growth helped by healthy 19-20% growth in loans and a 19-20% growth in disbursements In fourth quarter of FY12, net interest income rose 29% YoY to Rs 1,681 croreAnalysts on average expect spreads around 2.27%Net interest margins are likely to be steady around 4.2% to 4.3%. Loan re-pricing of teaser loans should help margins. Year-on-year margins will be higher, but QoQ the margins should look lower because typically Q4 sees the highest margins. Net interest margin stood at 4.4% and 3.3% in the fourth quarter and first quarter of previous financial year, respectively.Analysts expect a steady loan growth of 18% to 20% to continue. In the previous quarter, loan book grew by 20% to Rs 1.4 lakh crore. Approvals increased by 20% and disbursements went up by 18%.Watch out for lower non-interest income due to lower fee income + sale from investments (Rs 20 crore) and lower dividend income as the HDFC Bank dividend will accrue in Q2 only.In Q4 FY12, fee income declined 23% to Rs 60 crore and sale from investments went down by 40% to Rs 79 crore. Dividend rose by 7% to Rs 62 crore. Asset quality will continue to be healthy In the fourth quarter of previous financial year, gross non-performing assets (NPA) fell 3 basis points to 0.74%Profit growth might be restricted to 17 to 18% due to lower dividend and treasury income Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
