Moneycontrol
Last Updated : Jan 29, 2018 05:38 PM IST | Source: Moneycontrol.com

HDFC shares end at record closing high, up 3%; here are 5 key takeaways from Q3 earnings

HDFC has reported a whopping 233.3 percent growth year-on-year in net profit at Rs 5,670.2 crore for the December quarter, driven by one-time gain after stake sale in life insurance business.

Housing Development Finance Corporation ended at record closing high of Rs 1,967.60, rising 3 percent on Monday after reporting quarterly earnings that met analyst expectations.

The stock rallied more than 44 percent in last one year, though declined 1.7 percent during October-December quarter.

It surged as much as 4 percent today to hit an intraday record high of 1,986.05 on the NSE.

Here are five key takeways from Q3 earnings:

Profit

HDFC has reported a whopping 233.3 percent growth year-on-year in net profit at Rs 5,670.2 crore for the December quarter, driven by one-time gain after stake sale in life insurance business.

The housing finance company earned one-time gain of Rs 3,675.3 crore on stake sale in HDFC Standard Life Insurance.

Net interest income

Net interest income grew by 11.2 percent year-on-year to Rs 2,967.7 crore in Q3FY18.

Net interest margin contracted to 3.86 percent for the quarter, from 3.95 percent in year-ago period and 3.90 percent in previous quarter, Keki Mistry, CEO said while addressing press conference.

Loan Book

Loan book at the end of December quarter stood at Rs 3.4 lakh crore, higher by 18.5 percent compared to Rs 2.87 lakh crore in December 2016, he added.

Asset quality

Asset quality remained stable for the quarter as non-performing loans were at 1.15 percent against 1.14 percent in previous quarter.

Mistry said non-performing individual loans were at 0.67 percent against 0.65 percent and non-individual NPLs were flat at 2.18 percent on sequential basis.

Fundraising

HDFC's board of directors has approved issuing non-convertible debentures of Rs 35,000 crore which approved at its 40th AGM in July 2017.

The board also approved issuance of rupee denominated bonds / foreign currency denominated bonds to overseas investors for an additional amount not exceeding USD 1,500 million, in various tranches, under MTN programme.

At 14:42 hours IST, the stock price was quoting at Rs 1,973.70, up Rs 71.15, or 3.74 percent on the BSE.
First Published on Jan 29, 2018 02:55 pm
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