HDFC consolidated profit up 80% YoY in Q2, Gruh stake sale adds Rs 8k cr

Housing finance corporation HDFC, on Monday, reported a standalone net profit of Rs 3,961 crore, up 60.5 per cent YoY, for the quarter ended September 2019 (Q2FY20) on the back of stake sale from Gruh Finance. The HFC had reported a profit of Rs 3,203 crore in Q1FY20 and Rs 2,467 crore in Q2FY19. 
 

On a consolidated basis, the HFC reported a profit of Rs 10,388 crore, up 80.38 per cent YoY from Rs 5,759.19 crore.
 

The profit beat Street estimates. Analysts at ICICI Securities, for instance, estimated that other income of Rs 3,421 crore, including gain of Rs 1,632 crore from stake sale in Gruh Finance and Rs 1,074 crore dividend from subsidiary, could lead to a standalone PAT of Rs 3,628 crore, up 47 per cent YoY, in the recently-concluded quarter.
 

“Pre-tax adjusted gains from the stake sale in Gruh Finance stood at Rs 8,000.29 crore in the consolidated financial results…." the company said in a statement. 

Meanwhile, the NII came in at Rs 3,077.7 crore. The company logged a dividend income of Rs 1,073.8, while the tax expense stood at Rs 568.9 crore. The HFC reported a revenue of Rs 13,487 crore in the recently concluded quarter.

"Individual loan growth was 17 per cent on AUM basis... 76per cent of loans were to individuals, while loans to non-individuals on a very selective basis," HDFC said in a statement.

The individual gross non-performing assets ratio (GNPA) came in at 0.73 per cent, while the non-individial GNPA ratio was 2.87 per cent. The overall GNPA ratio was 1.33 per cent.
 

Analysts had expected the NPA levels to remain more or less stable, yet maintained a negative bias towards the parameter. While Prabhudas Lilladher incorporated slight stress on corporate loan book, analysts at Narnolia said that the rise in delinquency in the non-individual segment could put stress on the asset quality. Prabhudas Lilladher pegged the GNPA ratio at 1.19 per cent, with provisions seen at Rs 461.5 crore.

At 2:46 PM, the stock was trading 2 per cent higher at Rs 2,173 per share, as against a 0.38 per cent rise in the benchmark S&P BSE Sensex. It ended the day at Rs 2,180 levels on the NSE, up 2.4 per cent.