HDFC Q1 net up 38% to Rs 1871 cr on stake sale in insurance biz

“Loan book stood at Rs 2.65 lakh crore at the end of June quarter, higher by 14.92 percent compared with Rs 2.31 lakh crore in the previous year,” the country’s largest housing finance company said.

Housing finance company HDFC ‘s April-June quarter profit beat analysts’ estimates, showing a solid 37.5 percent growth at Rs 1,870.7 crore on yearly basis, boosted by stake sale in insurance business. Total income from operations increased 19.4 percent to Rs 8,382.3 crore in the quarter ended June 2016 compared with Rs 7,018.6 crore in corresponding period of last fiscal. Net interest income, the difference between interest earned and interest expended, grew by 9 percent to Rs 2,229.15 crore on yearly basis. “Loan book stood at Rs 2.65 lakh crore at the end of June quarter, higher by 14.92 percent compared with Rs 2.31 lakh crore in the previous year,” the country’s largest housing finance company said. During the quarter, the corporation sold loans amounting to Rs 5,108 crore, including Rs 3,296 crore sold to HDFC Bank. HDFC further said it has sold 12.3 crore equity shares of HDFC ERGO GeneralInsurance Company to its partner Ergo International AG that resulted in pre-tax gain of Rs 921.61 crore during the quarter. Profit was higher than analysts’ expectations of Rs 1,820.8 crore for the quarter. Net interest margin declined to 3.8 percent from 4 percent on sequential basis. Asset quality was stable as gross non-performing assets stood at 0.75 percent in Q1FY17 against 0.7 percent in Q4FY16. Provision for contingencies shot up sharply by 580 percent year-on-year to Rs 340 crore during the quarter but declined 37.6 percent on sequential basis. It included additional one time provision of Rs 275 croretowards standard assets and other contingencies. Tax expenses increased significantly by 40.3 percent to Rs 829 crore on yearly basis, especially after stake sale. Consolidated profit (including insurance and asset management businesses) jumped 26.9 percent to Rs 2,797 crore and net interest income grew by 18.6 percent to Rs 13,517 crore YoY. The scrip of Housing Development Finance Corporation was quoting at Rs 1,387.75, up 1.47 percent after hitting a record high Rs 1,398 on the BSE.

 

Source: Money Control

Date: July 28th 2016.

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