Housing Development Finance Corporation (HDFC) said profit on standalone basis increased 11.88 percent year-on-year to Rs 1,701.21 crore in the quarter ended December 2016. It was impacted by higher provisions and tax cost but supported by net interest income growth.
Housing Development Finance Corporation (HDFC) said profit on standalone basis increased 11.88 percent year-on-year to Rs 1,701.21 crore in the quarter ended December 2016. It was impacted by higher provisions and tax cost but supported by net interest income growth and dividend income.
Reported net interest income during the quarter grew by 18 percent to Rs 2,669 crore compared with Rs 2,254 crore in same quarter last year.
"On assets under management (AUM) basis, the growth in individual loan book was 17 percent and non-individual loan book was 19 percent. The growth in total loan book on an AUM basis was 17 percent," the housing finance company said in its filing.
HDFC further said loan book as of December 31 stood at Rs 2.86 lakh crore, with individual loan book growing 14.7 percent year-on-year to Rs 1.99 lakh crore and non-individual loan book rising 17.7 percent to Rs 87,542 crore YoY.
Provisions for bad loans stood at Rs 117 crore in October-December quarter, an increase of 23 percent over previous quarter and 72 percent over corresponding quarter of last fiscal.
Earnings were mixed. Profit was expected at Rs 1,681.2 crore and net interest income was estimated at Rs 2,352.9 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.
Asset quality weakened a bit in the quarter gone by. Gross non-performing assets (NPA) as a percentage of gross advances increased to 0.81 percent from 0.76 percent.
Non-individual gross NPA rose to 1.16 percent from 1.11 percent and individual gross NPA increased to 0.65 percent from 0.61 percent on sequential basis.
Dividend income grew by 31.6 percent year-on-year to Rs 179 crore in the quarter ended December 2016.
Tax expenses during the quarter jumped sharply by 23.88 percent to Rs 830 crore compared with year-ago period.
HDFC said consolidated profit during the quarter increased 12.8 percent year-on-year to Rs 2,728.66 crore and total income grew by 22.2 percent to Rs 14,981.41 crore, which included its insurance business.
At 12:49 hours IST, the stock was quoting at Rs 1,369.75, down Rs 0.95, or 0.07 percent on the BSE.
Reacting to the results, Siddharth Purohit of Angel Broking said that the numbers are in-line with expectation and the individual loan book growth of 14 percent is quite decent for this quarter.
On the marginal rise in GNPA, Purohit expects it to be a one-off event only for this quarter.