HDFC Q4 net up 40% at Rs 2,607 crore

Its total assets grew by 14% to Rs 2, 88,753 crore in FY16 from Rs 2, 53,952 crore in FY15

Housing Development Finance Corporation (HDFC) has posted a 40 per cent rise in net profit at Rs 2,607 crore for the March 2016 quarter on the back of sale of investments. The housing finance company had posted Rs 1,862 crore profit in the year-ago period.

HDFC’s total income for the March 2016 quarter rose 23.7 per cent to Rs 9,225 crore from Rs 7,456 crore in the fourth quarter of FY15. For the full year (FY16), the company posted a net profit of Rs 7,093 crore, up from Rs 5,990 crore in FY15. Total income rose from Rs 27,470 crore in FY15 to Rs 30,956 crore in FY16.

The HDFC board recommended a final dividend of Rs 14 per share (of face value Rs 2 each) for FY16, taking the total dividend to Rs 17 a share for FY16. The dividend payout in FY15 was Rs 15 a share. Its stock closed at Rs 1,092 a share on the BSE on Monday. The company’s total assets grew 14 per cent to Rs 2,88,753 crore in FY16 from Rs 2,53,952 crore in FY15.

Loan disbursements to individuals grew 18 per cent during the year. The average size of individual loans stood at Rs 25 lakh in FY16 against Rs 23.3 lakh in the previous year.

As on March 31, 2016, the loan book stood at Rs 2,59,224 crore against Rs 2,28,181 crore in the previous year. Loans sold to HDFC Bank, pursuant to an agreement for those loans sourced by private bank, in FY16 were significantly higher at Rs 12,773 crore against Rs 8,249 crore in the previous year. The net interest margin for FY16 was 3.9 per cent compared to four per cent in the previous year.

In March, the firm sold nine per cent of its equity shares in HDFC Life to Standard Life (Mauritius Holdings) 2006 Limited. The total consideration was Rs 1,706 crore. The profit on sale of this investment was Rs 1,513 crore.

As HDFC Life is an unlisted entity, the capital gains tax on the sale of shares was Rs 300 crore.

As a result of the sale of shares, the Corporation's holding in HDFC Life is 61.6%, while Standard Life (Mauritius Holdings) 2006 Limited's share is 35%.

The Corporation's capital adequacy ratio stood at 16.6 per cent, of which Tier I capital was 13.2% and Tier II capital was 3.4%.