LIC Housing Finance posts 16% fall in pre-tax profit at Rs 826.72 crore

LIC Housing Finance posted a 16 per cent fall in its pre-tax profit at Rs 826.72 crore in the fourth quarter as net interest income dropped. It had posted a PBT of Rs 986.24 crore in same quarter of previous financial year (Q4FY19). 

LIC HFC stock closed almost flat at Rs 284.75 per share on the BSE.

Its net profit fell sharply, by 40 per cent, to Rs 421.43 crore from Rs 693.58 crore in Q4FY19. The firm’s NII for the reporting quarter fell 9 per cent to Rs 1,089 crore as against Rs 1,202 crore in Q4FY19. Net interest margin declined to 2.10 per cent, from 2.56 per cent. For the entire financial year (FY20), its net profit declined marginally to Rs 2,401.84 crore from Rs 2,430.97 in FY19.

The business activity — disbursements — were impacted by a nationwide lockdown imposed in the second half of March to contain the spread of coronavirus.  Disbursements in the quarter stood at Rs 11,325 crore, down from Rs 17,242 crore in Q4FY10. 

Total outstanding portfolio grew 8 per cent to Rs 2,10578 crore in March 2020 from Rs 1,94,646 crore in March 2019. 

Out of total loans, the individual loan portfolio grew to Rs 1.96 trillion in March 2020 from Rs 1.81 trillion a year ago. The project loan portfolio rose to Rs 14,237 crore, from Rs 13,077 crore in March 2019.

LIC HFC’s asset quality profile came under pressure with a rise in gross non-performing assets (NPAs) to 2.86 per cent, from 1.54 per cent in March 2019. Net NPAs also went up to 1.99 per cent, from 1.08 per cent. 

While calculating expected credit loss, the company has taken into account its historical experience of losses, updated to reflect current conditions and moratorium.