HDFC Q1 profit drops 5% y-o-y to ₹3,052 crore
2 min read . Updated: 30 Jul 2020, 03:26 PM IST- Revenue from operations climbed marginally to ₹13017.68 crore from ₹12990.29 crore in the same quarter last year
MUMBAI : Mortgage lender HDFC on Thursday reported a 4.73% year-on-year fall in standalone profit at ₹3,051.52 crore for the June quarter owing to lower profit on sale of investments and additional provision due to covid. The lender had reported ₹3203.10 crore profit in the same quarter last year.
A Bloomberg poll of 15 analysts had estimated a net profit of ₹2532.3 crore.
Revenue from operations climbed marginally to ₹13,017.68 crore from ₹12,990.29 crore in the same quarter last year.
The growth in the individual loan book, after adding back loans sold in the preceding 12 months was 17%. The growth in the total loan book after adding back loans sold was 16%. HDFC said that their retail business was impact due to the lockdown. However individual loan business has seen a month-on-month improvement with June 2020 disbursements being 68% of the corresponding month in the previous year.
Loans under moratorium 2 stood at 22.4% of the total AUM, compared to 27% under moratorium 1. Individual loans under moratorium 2 stood at 16.6% of the individual loan portfolio.
HDFC’s net Interest Income or core income for the quarter at ₹3392 crore was 10% higher than ₹3079 crore last year. net Interest Margin (NIM) was 3.1% compared to 3.3% in the corresponding quarter last year.
Asset quality remained stable with absolute gross NPAs rose sequentially to ₹8631 crore from ₹8908 crore in the March quarter. In percentage terms, gross NPA at 1.87% was lower than 1.99% in the March quarter.
Provisions for the quarter stood at ₹12,285 crore. The housing finance company made additional provision of ₹1,199 crore compared to ₹890 crore.
HDFC’s capital adequacy ratio stood at 17.3% of which Tier 1 capital was 16.2%. The company is looking to raise ₹14,000 crore by way of equity issuance.
At 02:30 pm, shares of HDFC fell 0.36% to ₹1872.75 apiece, while the benchmark index, Sensex lost 0.78% to 37,774.06 points.
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