LIC Housing Fin Q1 net nosedives 81% to Rs 153 cr on spike in impairment

Total income declined to Rs 4,859.04 crore from Rs 4,977.5 crore a year ago. Sequentially also income fell marginally from Rs 4,964.3 crore in Q4FY21

Mortgage major LIC Housing Finance Ltd's net profit fell by as much as 80.7 per cent to Rs 153.4 crore in the first quarter ended June 30, 2021 (Q1FY22), primarily on multi-fold rise in impairment on financial instruments.

It had posted a net profit of Rs 817.48 crore in the quarter ended June 2020 (Q1FY21). Sequentially, net profits fell from Rs 398.92 crore in the quarter ended March 2021 (Q4FY21).

Its total income for the reporting quarter (Q1FY22) declined to Rs 4,859.04 crore from Rs 4,977.5 crore in Q1FY21. Sequentially, the income fell marginally from Rs 4,964.3 crore in Q4FY21, according to filing with BSE.

Its stock closed 4.11 per cent lower at Rs 415.25 per share on BSE.

Its impairments for financial instruments jumped to Rs 830.41 crore in Q1FY22 from Rs 56.45 crore in Q1FY21, a quarter in which the moratorium on payments for loans due to Covid-19 was in force. The impairments on financial instruments were at Rs 977.19 crore in Q4FY21.

Its employee benefit expenses rose to Rs 215.23 crore in Q1FY22 from Rs 79.58 crore in Q1FY21. Sequentially, also, they went up from Rs 59.22 crore in Q4FY21.