1. HDFC Q4 results: Net Profit Down 21.58%; here are the key take aways

HDFC Q4 results: Net Profit Down 21.58%; here are the key take aways

Housing Development Finance Corp Ltd today reported a 21.58 per cent year-on-year drop in standalone net profit at Rs 2,044.20 crore for March quarter, beating analysts estimates of Rs 2,021 crore.

By: | Updated: May 4, 2017 4:31 PM
Housing Development Finance Corp Ltd today reported a 21.58 per cent year-on-year drop in standalone net profit at Rs 2,044.20 crore for March quarter.

Housing Development Finance Corp Ltd today reported a 21.58 per cent year-on-year drop in standalone net profit at Rs 2,044.20 crore for March quarter. Standalone net profit for Q4FY17 rose 20.16% on-quarter from Rs 1,701.21 crore. Consolidated net profit for Q4 declined 11.01% on-year to Rs 3,079.33 crore. Shares of the company closed 0.42 per cent down at 1,564.40 on BSE.

Here are the key takeaways from HDFC’s results:

Net Profit

Standalone net profit at Rs 2,044.20 for the quarter ended 31 March 2017 was 21.58% lower than Rs 2,607.05 crore for the corresponding quarter last year. The reason for lower net profit in Q4FY17 was the one-off profit on the sale of investments of Rs 1,519.86 crore in same quarter last year. However, standalone net profit for Q4FY17 rose 20.16% on-quarter from Rs 1,701.21 crore. Consolidated net profit for Q4 declined 11.01% on-year to Rs 3,079.33 crore.

Total Income

Standalone total income at Rs 8,514.51 crore was 7.70% lower on-year but rose 4.49% on-quarter. Consolidated total income rose by 5.34% on-year to Rs 18,040.59 crore in Q4FY17.

Finance Cost

Finance cost for this March quarter grew 7.56% on-year to Rs 5,237.94 crore, compared to Rs 4,869.87 crore reported for the corresponding quarter last year.

Provisions

Provisions for the quarter rose 26.49% on-quarter to Rs 148 crore but were down 73% on-year from Rs 545 crore in the same quarter last year.

Net interest income

Net interest income for the quarter was Rs 3,215 crore which was marginally short of ET Now’s analysts poll estimate of Rs 3,244 crore.

Earnings Per Share

EPS (diluted) for the quarter fell to Rs 12.06 from Rs 16.06 in the corresponding quarter last year.

Non-Performing Assets (NPA)

Gross NPAs for the quarter at 0.79 per cent of gross advances were lower from 0.81 per cent in the previous quarter.

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Segment Wise Revenue

A segment-wise break-up of revenue showed life insurance business at Rs 7,932.76 crore contributing 19.21% on-year in HDFC’s growth, whereas general insurance business at Rs 891.49 crore contributed 55.43% on-year to HDFC’s growth. The loan business stood at Rs 9,015.17 crore down 6.61% on-year while asset management business at Rs 453.20 crore was down 18.65% on-year.

Dividend

In its meeting held on Thursday, HDFC’s board of directors had recommended a final dividend of Rs 15 per equity share of face value of Rs 2 each for the financial year 2016-17. HDFC said, “The dividend, if approved by the Members, will be paid on July 27, 2017. The total dividend for the year (including the interim dividend of Rs 3 per equity share) is Rs 18 per equity share as against Rs 17 per equity share for the previous year.”

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