Housing financier HDFC’s net profit for September quarter of FY21 tumbled 27.5 per cent to Rs 2,870.12 crore, less than Street's expectations of over 50 per cent, supported by gain from stake sale HDFC Life during the quarter. It had clocked a net profit of Rs 3,961.5 crore in the year-ago period.
On a consolidated basis, the profit declined 53.15 per cent to Rs 5,035.41 crore from Rs 10,748.69 crore clocked in Q2FY20. The lender has set aside provisions worth Rs 436 crore in the September quarter of FY21.
"The Corporation has sold 26 million equity shares of HDFC Life Insurance Company Limited (HDFC Life) resulting in a pre-tax gain of Rs 1,240.59 crore," the management said in a statement to the exchanges.
The numbers beat profit estimate, cheering investors. The stock soared to day's high of Rs 2,043 apiece on the BSE, up 6.2 per cent, as against 0.65 per cent rise in the benchmark S&P BSE Sensex.
Analysts at ICICI Securities had expected the net profit to decline 54 per cent YoY to Rs 1,811.7 crore during the quarter. “Despite elevated morat 2.0 print at 22 per cent, we anticipate less than 5 per cent restructuring. Factoring in home loan disbursements at 95 per cent of Q2FY20 (though conservative on non-individual side), we are building in asset under management (AUM) growth of 9-10 per cent. Also, we expect NIMs to be broadly steady QoQ,” the brokerage had said in its preview report. READ ANALYSTS’ EXPECTATIONS HERE
Its pre-tax profit declined 22 per cent on a yearly-basis to Rs 3,531.78 crore. The same was Rs 4,530 crore in the September quarter of FY20. Sequentially, it slipped 2 per cent from Rs 3,606.83 crore.
Net interest income
For the recently concluded quarter, the net interest income (NII) came in at Rs 3,647 crore, jumping 20.7 per cent YoY from Rs 3,021 crore.Net interest margin (NIM) remained flat at 3.3 per cent. Overall, total income stood at Rs 11,732.7 crore, down 13 per cent from Rs 13,494.12 crore reported in Q2FY20.
Analysts at Phillips Capital had expected HDFC’s NII to come in at Rs 3,311.2 crore for Q2FY21, up 12.2 per cent from Rs 2,950.4 crore clocked in Q2FY20, but down 0.7 per cent from Rs 3,335.6 crore reported in the June quarter of the current fiscal.
HDFC Q2FY21
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