X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
HDFC: Topline takes breather - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jan 11, 2002

    HDFC: Topline takes breather

    HDFC has reported lower than expected growth in income from operations for the third quarter ended December 2001. Its earnings however, showed a strong growth of 22% on the back of lower depreciation charge.

    (Rs m) 3QFY01 3QFY02 Change 9m FY01 9m FY02 Change
    Income from Operations 5,797 6,652 14.7% 17,184 19,698 14.6%
    Other Income 0 11 - 40 38 -4.5%
    Interest Expenditure 4,270 4,829 13.1% 12,477 14,177 13.6%
    Operating Profit 1,527 1,823 19.4% 4,708 5,520 17.3%
    Operating Profit Margin (%) 26.3% 27.4%   27.4% 28.0%  
    Other Expenses 242 285 17.8% 723 861 19.2%
    Depreciation 140 101 -27.8% 360 250 -30.6%
    Profit before Tax 1,145 1,448 26.4% 3,665 4,448 21.4%
    Tax 154 238 54.7% 505 712 41.1%
    Profit after Tax/(Loss) 992 1,210 22.0% 3,161 3,736 18.2%
    Net profit margin (%) 17.1% 18.2%   18.4% 19.0%  
    No. of Shares (eoy) (m) 119.1 120.4   119 120  
    Diluted Earnings per share* 32.9 40.2   34.9 41.3  
    P/E (at current price)   15.9     15.5  
    *(annualised)            

    In this competitive environment also, HDFC's operating margins improved by 100 basis points. Its cost to income ratio however, increased to 16% in 3QFY02 from 15% in the comparable previous quarter. The company's gross mobilization of retail deposits increased by 42% in the first half of the current year. Retail deposits account for 30% of total deposits mobilized by the company. This has helped the company in reducing its average cost of deposits and maintaining higher margins.

    HDFC's disbursements and approvals witnessed a healthy growth of 30% and 29% in the first nine months of the current fiscal. The growth was partly fueled by the amalgamation of Home Trust Housing Finance Company. Since the company was amalgamated with effect from October 1, 2000, previous year figures are not strictly comparable. Approvals and disbursements for individual loans were also higher by about 45%. Increased tax incentives and stagnant property prices fueled the growth. HDFC's capital adequacy ratio of 13% will help the company in its business expansion.

    HDFC's revenue growth was supported by a 23% rise in interest income and 20% growth in lease rentals. Also, during the first half the company received Rs 514 m from sale of shares in HDFC Asset Management Company to Standard Life. Excluding this revenue stream, income from operations of the company grew by just 12% during the first nine months. The decline in income from capital market related activities (dividend and investment income) trimmed the topline growth.

    (Rs m) 9m FY01 9m FY02 Change
    Interest on loans 11,741 14,478 23.3%
    Fees and other charges 678 745 9.9%
    Dividend income 958 751 -21.6%
    Lease rental income 318 381 19.7%
    Income from investments 2,927 2,715 -7.2%
    Profit on sale of investments 563 627 11.5%
    Total income 17,184 19,698 14.6%

    At the current market price of Rs 640, HDFC is trading at a P/E of 14x and Price/Book value ratio of 3x FY02 projected earnings. The company's full year profits are expected to grow by about 17%-19%.

     

     

    Equitymaster requests your view! Post a comment on "HDFC: Topline takes breather". Click here!

      
     

    More Views on News

    HDFC: Red Flag in Developer Loans (Quarterly Results Update - Detailed)

    Aug 10, 2017

    HDFC starts FY18 on robust loan growth but asset quality slips on increased exposure to developer loans.

    HDFC: Conservative Provisioning tempers down FY17 earnings (Quarterly Results Update - Detailed)

    May 9, 2017

    HDFC ends FY17 on a tepid note as it remains conservative on the asset quality front.

    HDFC: High Provisioning Drags Down Earnings Growth (Quarterly Results Update - Detailed)

    Feb 7, 2017

    HDFC declared its results for the third quarter (3QFY17). The institution has reported 18.4% YoY growth in net interest income while net profits have grown by 11.9% YoY during 3QFY17.

    Shriram Trans Fin: FY17 Ends on a Tepid Note due to Regulatory Headwinds (Quarterly Results Update - Detailed)

    Jun 22, 2017

    Demonetisation led slowdown coupled with shift to stringent bad loan norms keep Shriram Transport Finance on a slow wicket.

    Power Finance Corp: Alignment with RBI Norms Knocks Down FY17 Earnings (Quarterly Results Update - Detailed)

    Jun 14, 2017

    Power Finance Corporation earnings hit by RBI mandated higher provision on state government power generation projects where the recovery continues to be 100%.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    HDFC SHARE PRICE


    Aug 22, 2017 (Close)

    TRACK HDFC

    HDFC - L&T FINANCE HOLDINGS COMPARISON

    Compare Company With Charts

    COMPARE HDFC WITH

    MARKET STATS