HDFC net profit up 32% excluding one-time gains

HDFC, the country’s largest housing finance company, today said second quarter net profit rose 32.42 per cent, excluding one-time gains from the sale of stake in Intelenet Global in the same quarter last year.

The company’s profit in the same period last year was Rs 646.39 crore, but that included Rs 313.25 crore from the stake sale.

Including the one-time gains, net profit fell 17.35 per cent to Rs 534.23 crore from Rs 646.39 crore in the same period. The mortgage company said that its income rose 38.47 per cent to Rs 2,615.10 crore from Rs 1,888.60 crore. Interest income was 36.06 per cent higher at Rs 2,503.37 crore as against Rs 1,839.83 crore.

 

In contrast, expenses on interest payment and other charges rose 43.60 per cent to Rs 1,757.26 crore this year from Rs 1,223.75 crore during July-September last year.

During the first half, HDFC’s net profit was 1.65 per cent lower at Rs 1,002.34 crore as compared to Rs 1,019.20 crore for the same period last year, which included the gains from the sale of Intelenet. Excluding the exceptional item last year, its profits were 29.12 per cent higher.

While a rise in interest rates has pulled down the overall flow of home loans for most banks, HDFC said its loan book stood at Rs 81,192 crore at the end of September 2008, which was 31 per cent higher than Rs 62,020 crore at the end of September 2007.

Loan approvals for the half year-ended September grew 28 per cent to Rs 24,180 crore, compared with Rs 18,948 crore in the same period last year. During April-September HDFC’s loan disbursements rose 25 per cent to Rs 17,788 crore.

HDFC Vice-Chairman and MD Keki Mistry said the company is confident of maintaining a growth of 20-25 per cent for the financial year 2008-09.

At the end of September 2008, the total individual loan portfolio stood at Rs 54,727.61 crore, which was 30.69 per cent higher than Rs 41,874.04 crore at the end of September 2007. The corporate loan portfolio rose about 32 per cent to Rs 24,509.33 crore.

HDFC said that during the half year-ended September 2008, it improved its spreads to 2.24 per cent from 2.20 per cent in the same period in 2007. A strong recovery effort helped it lower the level of gross non-performing assets to 1.04 per cent of the loan portfolio at the end of September 2008 from 1.16 per cent during the same period last year.

The company said that its deposit base increased almost 28 per cent to Rs 14,723 crore at the end of September 2008. During the first half of the financial year, deposits accounted for about 45 per cent of HDFC’s borrowing.

HDFC’s stock dropped 1.3 per cent to Rs 1,782.05 on the Bombay Stock Exchange today.

HDFC’s capital adequacy ratio stood at 15.2 per cent, with Tier I capital adequacy accounting for 14.1 per cent.