HDFC Q4 net profit rises over 17% to Rs 2,083 crore
Mumbai: Boosted by robust growth in loan advances and performance of subsidiaries, the country's largest pure-play mortgage lender HDFC Wednesday reported 17.2 percent rise in consolidated net profit at Rs 2,083.12 crore in the fourth quarter ended March 31.
In the same quarter a year ago, HDFC's net profit stood at Rs 1,776.74 crore. Consolidated total income rose in March 2013 quarter rose to Rs 11,042.88 crore from Rs 9,278.11 crore in the same period of the previous fiscal.
On a standalone basis, helped by a robust 21 percent loan growth, HDFC reported a 17.3 percent rise in net profit at Rs 1,555 crore in the fourth quarter ended March 31.
While advances grew nearly 21 percent, the better numbers were also aided by higher margins and a dip in bad loans, which declined to 0.70 percent from 0.74 percent a year ago, which is the 33rd consecutive quarter of declines in which the percentage of NPAs has been lower than the year-ago period, HDFC said.
Total income on a standalone basis rose 16 percent to Rs 5,666 crore in the period under review.
Total loan book at the end of the year rose to Rs 1.7 lakh crore, up 20.6 percent from a year earlier, which is much higher than the industry average for credit growth at around 14 percent, HDFC Vice-Chairman and Chief Executive Keki Mistry told reporters here.
The market-beating numbers saw the HDFC counter hitting 52-week high at Rs 895 on BSE, jumping 4.75 percent, before settling a tad lower at Rs 885.60 on a day when the Sensex touched the 20,000-mark.
Net interest income (NII), the difference between interest earned and paid out, rose 13 percent year-on-year to Rs 1,900 crore during the quarter, Mistry said.
HDFC's net interest margin for the year stood at 4.21 percent, a marginal fall from 4.4 percent a year ago, he said, adding NIM for the quarter also stood at 4.21 percent.
Gross non-performing assets for the March quarter stood at 70 basis points and HDFC expects loan spreads to be between 2.2 and 2.25 percent going forward, said Mistry.
Capital adequacy ratio stood at 16.2 percent against the required 12 percent with the core capital adequacy at 13.8 percent, more than double 6 percent requirement.
On a consolidated basis, net profit for the full year clipped at a higher pace of 22 percent to Rs 6,639.72 crore against Rs 5,462.51 crore a year ago.
HDFC expanded its loan book by nearly 21 percent to Rs 1.70 lakh crore, excluding about Rs 5,200 crore loans it sold during the year, Mistry said.
"The growth in the individual loan book, after adding loans sold, is 31 percent (25% net of loans sold), while non- individual loans grew 13 percent," Mistry said.
The subsidiaries contributed 27 percent of the total profit, up from 25 percent last fiscal, he said.
HDFC Standard Life reported a net profit of Rs 451.48 crore in FY13 as against Rs 271 crore a year ago. Its new business premium income stood at Rs 3,113 crore, up 16 percent from Rs 2,694 crore a year ago.
HDFC Asset Management Company's net profit for the fiscal stood at Rs 318.75 crore, up from Rs 269.14 crore.
HDFC Ergo General Insurance's gross direct premium increased 33 percent to Rs 2,491 crore as against Rs 1,874 crore in the previous year. Net profit was Rs 154.5 crore as against a loss of Rs 39.7 crore in the previous year.
For the full year (FY13), HDFC's standalone net jumped 18 percent to Rs 4,848.34 crore and standalone net interest income rose 17 percent to Rs 21,112.50 crore, Mistry said.
Mistry clarified that the consolidated net profit for the year does not consider the charge in respect of the redemption premium on zero coupon debentures, amounting to Rs 438.04 crore, against Rs 485.07 crore for FY12.
Had the aforesaid adjustment been considered, he said net profit for the year would have been Rs 6,201.68 crore, up 25 percent from Rs 4,977.44 crore in FY12. The company paid a tax of Rs 1,724.50 crore for the year.
Total asset of the mortgage lender at end March stood at Rs 1,95,531 crore as against Rs 1,67,520 crore a year ago, registering a growth of 17 percent.
Its loan book at end March stood at Rs 1,70,046 crore as against Rs 1,40,875 crore in the previous year. Loans sold during the preceding 12 months amounted to Rs 5,175 crore.
Of the total loan book, individual loans comprised 68 percent. A whopping 81 percent of the incremental growth in the loan book during the year came from individual loans. As the end of the year, total loans outstanding in respect of loans sold/assigned stood at Rs 16,964 crore.
The residual interest on individual loans sold/ assigned is 1.33 percent per annum, Mistry said, adding the spread on loans over the cost of borrowings for FY13 stood at 2.30 percent, while the net interest margin for the year was 4.2 percent.
The housing finance firm approved loans worth Rs 1,03,260 crore in FY13 as against Rs 90,154 crore in the previous year, while loan disbursements stood at Rs 82,452 crore as against Rs 71,113 crore in the previous year.
As per NHB norms, HDFC is required to carry a total provision of Rs 1,506 crore. Of this, only Rs 387 crore are on account of bad assets and the balance Rs 1,119 crore are for general provisioning on standard loans, including dual rate home loans and other provisions, Mistry said.
At 0.70 percent, the provisions of its NPAs stood at Rs 1,199 crore, while provision for contingencies stood at Rs 1,792 crore, constituting 1.05 percent of the total asset portfolio, which means HDFC has made an additional provision of Rs 286 crore over the regulatory requirement.