The net profit of the Housing Development Finance Corporation Limited (HDFC) for the quarter ended March 31, 2008 increased by 40% to Rs 768.12 crore as against Rs 550.05 crore in the corresponding quarter last year.
The housing finance major which announced its results on Wednesday reported a net profit of which increased by 55% to Rs. 2,436.25 crore in 2007-08 as compared with Rs 1,570.38 crore in the previous year.
HDFC’s board of directors recommend payment Rs 25 (per share) of dividend for the year ended March 31, 2008 of as against Rs 22 per share in the previous year.
This profit before tax for 2007-08 is inclusive of profit on sale of a part of the Corporation’s investment in its subsidiaries, HDFC Standard Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited and the entire sale of its holdings in its associate company, Intelenet Global Services Private Limited amounting to Rs 636.26 crore.
Konrad D’Souza, senior general manager (treasury), HDFC said, “In the last fiscal, we recorded profit worth Rs 293 crore through derivatives trading.”
He said HDFC is expecting a 25% growth in loan disbursements in the current fiscal. “The real estate slowdown witnessed in certain pockets in te country has not affected our business,” said D’Souza.?
HDFC’s spread on loans over the cost of borrowings for the year stood at 2.32% as against 2.18% in the previous year.
The loan portfolio of the company stood at Rs 74,104 crore as against Rs 57,988 crore in the previous year, showing an increase of 28% and income from operations for the year stood at Rs 8,036.42 crore against Rs 5,458.98 crore a year ago. Loan disbursements during the year were Rs 32,875 crore as against Rs 26,178 crore in the previous year, representing a growth of 26%.
Meanwhile, gross non-performing loans as on March 31, 2008 amounted to Rs 621.01 crore, which is equivalent to 0.84% of the portfolio as against 0.92%, previous year. HDFC’s capital adequacy ratio stood at 16.8% at the year end.
