HDFC Q4 PAT up 42% YoY at Rs 3,180 cr; Board re-appoints Keki Mistry as MD

HDFC has recommended a final dividend of Rs 23 per equity share

India’s leading housing financier HDFC on Friday reported a 42.43 per cent year-on-year growth in standalone net profit at Rs 3,179.83 for January-March quarter of FY21 (Q4FY21). This compares with profit of Rs 2,232.5 crore reported in the previous year period (Q4FY20).

On a quarterly basis, the profit rose 8.6 per cent from Rs 2,925.8 crore reported in Q3FY21.

HDFC’s Board also approved re-appointment of Keki M. Mistry as the managing director (MD) of the Corporation for a period of three years with effect from May 7, 2021. Besides, it has recommended a final dividend of Rs 23 per equity share for FY21, compared to Rs 21 per equity share in the previous year.

Its profit before tax (PBT), meanwhile, increased a whopping 45.73 per cent YoY to Rs 3,923.94 crore from Rs 2,692.44 crore.

For the full fiscal of 2020-21, its reported PBT stood at Rs 14,815 crore, while the reported profit after tax was Rs 12,027 crore.

"The profit numbers for the year ended March 31, 2021 are not comparable with that of the previous year. In the previous year, the Corporation had recorded a fair value gain consequent to the merger of GRUH Finance Limited with Bandhan Bank, amounting to Rs 9,020 crore," the corporation said in its statement.

It added: To facilitate a like-for-like comparison of the financials, after adjusting for profit on sale of investments, dividend, fair value adjustments, income on assigned loans, charge for employee stock options and provisions, the adjusted profit before tax for FY21 stood at Rs 13,823 crore compared to Rs 11,586 crore, up 19 per cent YoY.

The Mumbai-based mortgage lender’s revenue, however, contracted 2 per cent on year from Rs 11,975.72 crore in Q4FY20 to Rs 11,697.1 crore during the period under study.

The numbers were largely in-line Street estimates. Global brokerage HSBC, for instance, had pegged HDFC’s PAT at Rs 3,212.1 crore while those at Sharekhan estimated it at Rs 2,770 crore. READ HERE

The net interest income (NII) grew a healthy 14 per cent on year to Rs 4,065 crore compared with Rs 3,564 crore in the previous year. Net Interest Margin for the year ended March 31, 2021 stood at 3.5 per cent.

Loan Book

HDFC’s assets under management (AUM) stood at Rs 5.70 trillion at the end of Q4FY21 relative to Rs 5.16 trillion as of March 31, 2020 owing to low interest rates, softer property prices, concessional stamp duty rates in certain states and continued fiscal incentives on home loans.

"As at March 31, 2021, individual loans comprised 77 per cent of the AUM. As at March 31, 2021, the individual loan book on an AUM basis grew 12 per cent and the non-individual loan book grew by 4 per cent. The growth in the total AUM was 10 per cent," HDFC said in its statement.

During Q4, individual loan disbursements grew by 60 per cent over the corresponding quarter of the previous year, it added.

Of the total loans disbursed during FY21, 33 per cent of home loans (volume terms) and 16 per cent (value terms) were to customers from the Economically Weaker Section (EWS) and Low Income Groups (LIG).

"As at March 31, 2021, cumulative loans disbursed by HDFC under Credit Linked Subsidy Scheme (CLSS) stood at Rs 39,333 crore and the cumulative subsidy amount stood at Rs 5,211 crore," HDFC said.

Asset quality
At the end of thequarter under review, HDFC's gross non-performing loans (GNPAs) stood at Rs 9,759 crore which is 1.98 per cent of the loan portfolio. Of these, NPA  for individual portfolio stood at 0.99 per cent while that of the non-individual portfolio stood at 4.77 per cent.

Analysts were anticipating GNPA ratio at 2.08 per cent compared with 1.99 per cent in Q4FY20 and 1.91 per cent in Q3FY21.

The provisions as at March 31, 2021 stood at Rs 13,025 crore. 

Following the results, shares of the HFC hit a high of Rs 2,507 apiece on the BSE before settling at Rs 2,496 per share, up 2.7 per cent. In comparson, the benchmark Sensex index closed 0.5 per cent higher.