HDFC Q3 PAT at Rs 8,372.5 cr, Board nod to raise up to Rs 45K cr via NCDs

Housing finance firm HDFC Monday reported 296 per cent year-on-year (YoY) rise in the standalone net profit at Rs 8,372.49 crore during the December quarter of Fy20 (Q3FY20), compared to Rs 2,113.8 crore reported in Q3FY19. Sequentially, the number was up 111.34 per cent from Rs 3,961.52 crore logged in Q2FY20.

On a consolidated basis, the net profit attributable to owners stood at Rs 3,835.38 crore.

“Fair value gain consequent to merger of Gruh, an associate, with Bandhan Bank at Rs 9,019.8 crore,” the management said in a statement.

Analysts’ had expected the NBFC to report net profit between Rs 1,800 crore and Rs 2,263.8 crore, excluding gains from stake sale in Gruh Finance to Bandhan Bank.

“There is fair value gain of Rs 9,200 crore led by Gruh finance stake sold to Bandhan. Accordingly, standalone profit seen at Rs 1,800 crore ex these gains. Including gains, expected profit is Rs 10,083 crore,” analysts at ICICI Securities had written in their earnings preview note.

The revenue for the quarter under review came in at Rs 20,285.47 crore, up from Rs 10,575.03 crore logged in Q3FY19.

LOANS

The NBFC extended loans totaling Rs 20,475.59 crore during the period under review, as compared to loans of Rs 11,284.96 crore during the year ago period.

“We expect HDFC’s loan growth to remain healthy at nearly 19 per cent, backed by strong demand in the affordable segment… NIMs, however, will be under pressure on external benchmark linkage,” analysts at Emkay Global Securities had said.

 

They had pegged the net interest income (NII) growth at 23.26 per cent YoY at Rs 4,097 crore, as against a NII of Rs 3,323.9 crore reported in Q3FY19. The same was Rs 4,036.3 crore in Q2FY20.