LIC Housing Fin Q2 PAT up 12% to Rs 5.73 bn, loan portfolio up 10%

The company recorded a strong growth in the affordable segment both in value and volume terms and continues to enjoy comfortable liquidity position

LIC Housing Finance has posted a profit-after-tax (PAT) of Rs 5.73 billion for the quarter ended September 30, registering a growth of 12 per cent as against a PAT of Rs 5.13 billion during the same period of the previous fiscal year.

Total income has risen by 12 per cent for the housing finance company, from Rs 38 billion in Q2 FY2018 to Rs 42 billion at the end of Q2 FY2019. 

At the end of Q2 FY2019, the outstanding loan portfolio grew to Rs 1,760 billion from Rs 1,514.2 billion at the end of Q2 FY2018. The loan portfolio has grown by 10 per cent over the last year. 

Vinay Sah, managing director and chief executive officer at LIC Housing Finance said, “In the second quarter of the financial year, we have seen strong disbursal growth and expect the trend to continue in future quarters. The company recorded a strong growth in the affordable segment both in value and volume terms and is poised to continue its growth trajectory. The Company continues to enjoy comfortable liquidity position.”

Finance costs have increased by 13 per cent from Rs 27.8 billion in Q2 FY2018 to Rs 31.4 billion at the end of Q2 FY2019. 

As of September 30, the company had Rs 11.53 billion in cash and cash equivalents, Rs 1,252 billion in (liable) debt securities and Rs 264.9 billion in borrowings.

Loan disbursements grew by 30 per cent from Rs 109.75 billion in Q2 FY2018 to Rs 142.72 billion at the end of Q2 FY2019. 

Of this, Rs 113.24 billion of the loans disbursed were to retail customers, while project-specific loans stood at Rs 29.5 billion at the end of Q2 FY2019. 

In FY2018 on the other hand, retail loan disbursement was Rs 103.7 billion while project-specific loans were Rs 6.08 billion. 

Loans to affordable housing continued to grew comprising 13.5 per cent of the total disbursements during the second quarter of fiscal 2019. 

Net Interest Income has grown from Rs 9.63 billion in Q2 FY2018 to Rs 10.12 billion at the end of Q2 FY2019. 

Net Interest Margin stood at 2.35 per cent for the quarter ended September 30. 

Gross Non-Performing Assets (NPA) stood 1.20 per cent at the end of Q2 FY2019, having fallen by one basis points from 1.21 per cent at the end of Q1 FY2019. 

The Board of Directors of LIC Housing Finance earlier in August announced a dividend of Rs 6.80 per equity share of face-value of Rs 2 each

LIC Housing Finance's stock price closed at Rs 415.85 on the NSE, up by 2.55 per cent from its closing price last Friday.