Housing Development Finance Corporation (HDFC) has recorded a 23% YoY jump in net profit to Rs 951.6 m in the third quarter of FY00. Income from operations increased by 14.7% from Rs 4.4 bn in the previous year to Rs 5.1 bn. During this quarter its interest expenses grew by 13% YoY from Rs 3.3 bn in to Rs 3.7bn.
HDFC (FY99 Total Income Rs 17.5 bn) is the largest housing finance company in India with a 55% market share. HDFC operates 41 offices and has a field force of more than 42,000 commission agents who mobilize retail deposits.
Income from operations
Profit before Tax
Profit after Tax
Net profit margin
For the nine months period ending 31st December 1999 its loan disbursements increased by 30% YoY to Rs 29.6 bn. Its approvals have gone upto Rs 36.1 bn a growth of 27% YoY.
The gross non-performing loans of HDFC were at 1.19% as at 31st December 1999. Since it fully provides for its NPA's, itt nine months of the current fiscal year.
The gross non-performing loans of HDFC were at 1.19% as at 31st December 1999. Since it fully provides for its NPA's, it does not have any net NPA's.
The growth in approvals and disbursements is again a pointer to the favourable incentives given to the housing sector in the budget. It is also a result of the improved economic scenario, stabilised real estate prices and favourable interest rate scenario.
The main drivers of net profit have been better spreads in the third quarter of FY00, and also a higher level of disbursements. With a strong deposit base, good growth in approvals and disbursements HDFC continues to have strong long term growth prospects.
The stock has always been a favorite of analysts and fund managers as it has an excellent asset quality and a good management. The FIIs have already exhausted their 30% investment limit in the company.
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: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407