Mumbai, Oct 25: Housing Finance and Development Corporation (HDFC) has recorded a net profit of Rs 97.10 crore for the second quarter of the current fiscal, an 18 per cent rise over the net profit for the same period of the previous fiscal. According to the unaudited results released in Mumbai on Tuesday, the corporation's net profit for the six-month period ended September 30, 1999, too recorded a similar 17 per cent jump at Rs 172.68 crore."The jump in net profits is on account of a 9 per cent jump in HDFC's income from operations for the second quarter of the current fiscal," the HDFC release said. HDFC recorded operating income of Rs 483.88 crore for the second quarter and Rs 932.73 crore operating income for the six months ended September 30, 1998.
"Approvals during the six month reporting period increased by 27 per cent to Rs 2,371.03 crore while disbursals were up by 25 per cent to Rs 1,888.77 crore over the corresponding period last year," the release said. The approvals and disbursements in respect of individual loans were higher by 35 per cent and 38 per cent respectively as compared to the corresponding period in the previous year, it added.
"HDFC's other income for the second quarter stood at Rs 0.63 crore, a marginal jump over the Rs 0.82 crore other income for the same period of the previous fiscal. However, interest expenses increased from Rs 315.95 crore to Rs 343.43 crore and other expenses for the second quarter went up by Rs three crore to Rs 18.88 crore," HDFC said.
While depreciation for the second quarter of the current fiscal was down to Rs 12 crore compared to Rs 12.23 crore in the corresponding quarter last year, HDFC's interest expenses rose by 8.7 per cent to Rs 343.43 during this period, the release said.
The HDFC scrip on the BSE opened at Rs 314, also the day's high but gradually dipped to the day's low of Rs 293.75. It closed the Monday session at Rs 295, with 4 lakh shares changing hands.
"The cost for remediation and other efforts associated with Y2K compliance was estimated at Rs 2.50 crore, including cost of capital expenditure for replacing hardware," HDFC said.
INSIGHT
Volumes boost profits
While the year-on-year growth rates are impressive the performance of the second quarter over the first quarter of the current year is even better. The profit of Q2 over Q1 has been higher by 28 per cent. The growth at HDFC has come about as a result of a spurt in volumes, with surge in retail housing demand. The higher growth rates in sanctions and disbursements also mean that the forthcoming quarters will also be buoyant.
Aaron Chaze
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.