LIC Housing Finance falls 4% after provisions dent earnings performance

The housing finance company registered a massive 37.4 percent year-on-year decline in profit at Rs 480 crore for three-month period ended December FY23, impacted by increase in impairment on financial instruments. (Representative image)

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26 Aug, 2025 12:21

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LIC Housing Finance's share price corrected nearly 4 percent on February 7 after higher provisions impacted quarterly earnings performance.

The housing finance company registered a massive 37.4 percent year-on-year decline in profit at Rs 480 crore for three-month period ended December FY23, impacted by increase in impairment on financial instruments, but supported by fall in tax cost.

The impairment cost on financial instruments (expected credit loss) for the quarter increased sharply by 114.5 percent to Rs 763 crore compared to year-ago period, LIC Housing Finance had said.

Also, finance cost rose by 19.4 percent to Rs 4,233 crore, while interest income grew by 17 percent to Rs 5,839 crore in the same period.

The company, backed by insurance behemoth Life Insurance Corporation, has seen a 42 percent YoY fall in tax cost at Rs 113 crore for quarter ended December FY23.

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Net interest income, the difference between interest earned and interest expended, grew by 10.4 percent year-on-year to Rs 1,605.9 crore for the quarter.

Technical View

The stock was quoting at Rs 373.2, down 3.86 percent at 2:19 p.m. IST, continuing downtrend for second consecutive session, but has managed to take a support around Rs 365 and formed long bearish candle with long upper and lower shadows on the daily charts for second straight day.

With the fall on February 7, the stock has broken the upward sloping support trendline adjoining lows of June 20, 2022 and February 1, 2023, indicating may be the possibility of more downside. Further, it has fallen below all short term (9 and 21 EMA - exponential moving average) as well as long term averages (50, 100 and 200), which is another sign of bearishness.