HDFC beats expectations in Q3; conservative provisioning offers comfort

Net interest income (difference between interest earned and expense) growth of 9 per cent YoY to Rs 3,239.9 crore was better than analyst expectations of around 8 per cent

Housing Development Finance Corporation’s (HDFC’s) December 2019 quarter (Q3) results beat the Street’s expectations on most operating parameters. While the housing financier major clocked over 3 times year-on-year (YoY) jump in its profit before tax to Rs 9,143 crore, its assets under management (AUM, which indicates the loan book size) grew 14 per cent. Analysts had pegged these two numbers at Rs 4,803 crore and 12-15 per cent, respectively. One-time gains of Rs 9,019 crore on account of stake sale in Gruh Finance —HDFC’s erstwhile affordable housing arm — fueled its profits.
 
Net profit improvement of about 4 times