HDFC net profit rises by 76%

Housing Development Finance Corporation (HDFC) has recorded a rise of 76 per cent in net profit to Rs 646.39 crore for the second quarter ended September 30, 2007, as against Rs 368.02 crore in the same period last year.

The bottomline is inclusive of the profit on sale of investment in an associate company, Intelenet Global Services Private Limited, amounting to Rs 313.25 crore.

"Apart from one-time sale of Intelenet, the rise in profit is due to maintaining good recovery record, cost of funds and steady growth in disbursements, which excluding the sale is 34 per cent," said Conrad D' Souza, senior general manager, treasury at HDFC.

Diluted earnings per share improved to Rs 22.83 in Q2 FY08 compared with Rs 13.71 a year earlier. Interest income grew by 43 per cent at Rs 1839.83 crore compared with Rs 1286.93 crore last year.

The total income included interest income, other operating income and profit on sale of investments. Other income rose 30 per cent to Rs 1892.50 compared with Rs 1456.23 crore in the second quarter of last financial year.

Other income, which is primarily on fee-based business reduced by 59 per cent to Rs 3.9 crore compared with Rs 9.54 crore in same quarter of the previous year.

Total expenditure shot up by 33 per cent to Rs 1310.06 crore as against Rs 986.12 crore in the same period last year. Major part of the expenditure consisted of interest and other charges which increased by 34 per cent at Rs 1223.75 (913.59).

The net profit for the half year ended 30 September 2007 has gone up by 53 per cent at Rs 1019.20 crore compared to Rs 664.84 crore for the half year ended FY07.

The profit before tax is inclusive of profit on sale of investment in an associate company, Intelenet Global Services Private Limited amounting to Rs 313.25 crore (as compared to Rs 32.98 crore in a subsidiary and associate company in the corresponding period in the previous year).

The interest income for the half year ended September 30 increased by 47 per cent Rs 3562.22 as compared to Rs 2428.86 crore.

The margins has increased to 2.27 as compared to 2.19 for the first six months of last year. The cost of funds has increased to 8.98 basis points as compared to 7.50 basis points of last year.

As of September 30, the total assets of HDFC stood at Rs 72,665 crore as against Rs 56,496 crore "� an increase of 29 per cent. Loan approvals during the six-month period ending September 30, 2007, amounted to Rs 18,948 crore compared with Rs 14,729 crore in the corresponding period last year, a growth of 29 per cent.

Loan disbursements during the period amounted to Rs 14,275 crore compared with Rs 11,280 crore in the year-ago period, an increase of 27 per cent. HDFC's capital adequacy ratio stood at 17 per cent of the risk weighted assets as against the minimum requirement of 12 per cent.