HDFC Q2 – Steady performance, all eyes on merger

The mortgage financier saw robust growth in retail loans, while credit costs were lower. Asset quality improved too, though margins declined.

Neha Dave
November 04, 2022 / 04:57 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Highlights Robust loan growth led by individual loan segment Margins decline but set to improve in the coming months Asset quality improves, restructured book declines further Credit cost falls, healthy provision coverage Valuation reasonable HDFC (CMP: Rs 2,478, MCAP: 450,379 crore) has reported a net profit of Rs 4,454 crore in Q2 FY23, a growth of 18 percent year on year (YoY) driven by robust growth in retail loans and lower credit costs. While asset quality improved, profit was adversely impacted by a decline in...