Housing Development Finance Corporation (HDFC) on Tuesday reported a 1.2% y-o-y rise in Q1 standalone net profit at Rs 1,361 crore.
Housing Development Finance Corporation (HDFC) on Tuesday reported a 1.2% y-o-y rise in Q1 standalone net profit at R1,361 crore. The mortgage lender said financial results for the June quarter were not comparable with the corresponding quarter of the previous year owing to the delay in receiving dividend from HDFC Bank in which it holds a 21.6% stake.
“The income from dividend from HDFC Bank of R315 crore would be booked in the second quarter of the financial year. In the previous year, dividend from HDFC Bank amounting to R269 crore was received in the first quarter. Hence, the quarter financials are not comparable,” HDFC said in a statement.
Its net interest margin (NIM), a key measure of profitability stood at 3.8% in Q1.
HDFC had recently sought shareholder nod to raise up to R85,000 crore through private placement. Keki Mistry, vice-chairman & CEO, said the need for capital would arise 2-3 years later as the lender continues to push its growth strategy. “As growth continues and we consume more capital, capital adequacy comes down and, so, we require capital,” he said.
As on June 2015, HDFC’s loan book stood at R2.31 lakh crore, up 13.8% from R2.03 lakh crore in the same period last year. The growth in the individual loan book, after adding back the loans sold in the preceding 12 months was 23% and the growth in the non-individual loan portfolio stood at 10%.
HDFC said its total loan book saw a growth of 19% after adding back loans sold.
Gross non-performing loans at the end of the June quarter were a tad lower at 0.69% of the portfolio compared to 0.70% last year. The non-performing loans of the individual portfolio stood at 0.54%, while that of the non-individual portfolio stood at 1.04% of total loans.
HDFC registered a 9.5% y-o-y growth in its total income at R7,057 crore in Q1 FY16. The balance in the provision for contingencies account in Q1 stood at R2,082 crore. Of this, R499 crore was on account of non-performing loans and the balance R1,583 crore in respect of general provisioning on standard loans and other provisions. HDFC said it carried an additional provision of R340 crore over the regulatory requirements.
The HDFC scrip closed at R1,304.5 on BSE, down 2.3% from its previous close.