HDFC Q1 Net up 18% on healthy loan growth

Country's largest mortgage lender HDFC on Tuesday reported an 18 percent growth in consolidated net profit at Rs 2,204 crore on the back of a healthy 19 percent loan growth in the three months to June.

Mumbai: Country's largest mortgage lender HDFC on Tuesday reported an 18 percent growth in consolidated net profit at Rs 2,204 crore on the back of a healthy 19 percent loan growth in the three months to June.

Its consolidated net profit during the April-June quarter of the previous fiscal was at Rs 1,872.90 crore.

The growth in bottomline was, however, limited by a deferred dividend payout by HDFC Bank worth Rs 315 crore, which has been pushed to the second quarter.

In the previous financial year, the company had received a dividend of Rs 269.35 crore from HDFC Bank in June 2014.

"To this extent, the results of the first quarter of the current year are not comparable with the corresponding quarter the previous year," the lender said in a statement.

Consolidated income rose to Rs 11,440.62 crore from Rs 10,056.07 crore in the year-ago period.

On standalone basis, net profit stood at Rs 1,361 crore in the reporting quarter compared to Rs 1,344.66 crore.

Gross NPAs stood at 0.69 percent compared to 0.70 percent in the corresponding quarter a year ago. The NPAs of individual portfolio stood at 0.54 percent, while that of the non-individual portfolio stood at 1.04 percent.

"Non-individual loans declined as there were two large loans, which were repaid as per schedule. Otherwise, growth is fairly good," vice-chairman Keki M Mistry told reporters.

The spread on loans over the cost of borrowings stood at 2.31 percent against 2.29 percent a year ago.

Net interest margin was at a flat 3.8 percent.

The loan book stood at Rs 2,31,224 crore as against Rs 2,03,384 crore, up over 19 percent. Of the total loan book, individual loans comprise 72 percent. The average size of the individual loans stood at Rs 23.4 lakh.

The company sold Rs 3,870 crore of loans. "In the last 12 months, we sold Rs 10,949 crore loans, the highest ever. We normally sell Rs 6,000-7,000 crore loans," Mistry said.

When asked about the fund raising plan, Mistry said the company will not tap the markets for capital any time soon, but will raise money through the debt route, which has a minor component of equity in the future.

"We are doing a qualified institutional placement, which is more in the nature of debt," he said.

Under the scheme, the company will issue warrants with the holder of the debt having an option to convert it into a share by paying a pre-agreed sum at the date of conversion. The conversion ratio is yet to be finalised.

"The share will be converted at a premium. The quantum is not known, but it will range 20-30 percent," Mistry said.

The company scrip shed 2.30 percent to close at Rs 1,304.50 a piece on the BSE, as against a 0.37 percent correction in the Sensex.

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