Pure-play home finance major HDFC today reported a nearly 31 per cent jump in consolidated net profit at Rs 3,460.5 crore for the March quarter, boosted by sale of part stake in its life insurance arm for Rs 1,513 crore.
In March, the company sold 9 per cent of its stake in HDFC Life to Standard Life Mauritius Holdings for a total consideration of Rs 1,706 crore, which yielded a net income of Rs 1,513 crore, the company Vice-Chairman and Chief Executive Keki Mistry said.
On a stand-alone basis, the net income rose 40 per cent to Rs 2,607 crore, from Rs 1,862 crore, driven by the one-time income.
Also Read
For the full fiscal, the consolidated net profit rose 16.3 per cent to Rs 10,190.3 crore, from Rs 8,762.6 crore after providing Rs 3,015 crore for tax, including Rs 379 crore as deferred tax liability on special reserves.
Provisions for contingencies, including an additional provision, stood at Rs 450 crore towards standard assets and other contingencies.
Retail loan grew by 18 per cent during the year, with average size being Rs 25 lakh as against Rs 23.3 lakh in the previous year, taking its loan book to Rs 2,59,224 crore as against Rs 2,28,181 crore in the previous year. Loans sold to HDFC Bank during the year rose significantly high to Rs 12,773 crore, as against Rs 8,249 crore.
The growth in the individual loan book after adding back loans sold in the preceding 12 months was 24 per cent, or 16 per cent of net loans sold, while non-individual loan book grew at 9 per cent, Mistry said.
Individual loans comprise 73 per cent for the full year and as much as 83 per cent of incremental loan growth came in from individual loans.
The company maintained its asset quality, with gross non-performing loans at 0.70 per cent, or Rs 1,833 crore. NPAs in retail portfolio stood at 0.51 per cent while that of the non-individual portfolio read 1.12 per cent, he said, adding that its total provisions stood at Rs 1,959 crore, of which Rs 1,341 crore are against standard assets.
The balance in the provision for contingencies account
stood at Rs 2,695 crore, of which Rs 566 crore are for NPAs, or 1.03 per cent of the total loan portfolio.
During the year, the company made an additional one-time provision of Rs 450 crore against standard assets and other contingencies to further strengthen the balancesheet.
The loan spread for the year came down a tad to 2.29 per cent, from 2.32 per cent, while the spread on individual loan book stood at 1.94 per cent.
The same on commercial loans stood at 3.10 per cent. Accordingly, the core net interest margin for the year came down by 10 bps to 3.9 per cent.
Share of profits from subsidiaries and associates in the consolidated net profit stood at 30 per cent for the year, taking the consolidated return on equity to 20.7 per cent.
HDFC Standard Life reported a profit after tax of Rs 818 crore for the full year as against Rs 786 crore in the previous year on a 10 per cent rise in premium income to Rs 16,313 crore.
Its AMC business HDFC Asset Management Company reported a net profit of Rs 478 crore, up from Rs 416 crore, while AUM rose 13 per cent to Rs 1.83 trillion at the end of the year.
The general insurance arm HDFC Ergo reported a gross direct premium of Rs 3,380 crore as against Rs 3,182 crore in the previous year while its net income rose to Rs 151 crore, from Rs 104 crore.
Investors ignored the numbers and the HDFC counter closed almost flat with a positive bias of 0.4 per cent at Rs 1,092.75 on BSE while the benchmark shed 0.7 per cent on global cues.
