HDFC's net up 14% - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

HDFC's net up 14%

Jan 18, 2001

HDFC has reported a year on year 14% increase in operating income for the 3QFY01. The corporation's profits growth has been slowed down during the current quarter due to decline of more than 80% in other income. However, it has improved operating margins by around 80 basis points.

(Rs m) 3QFY00 3QFY01 Change
Income from Operations 5,096 5,797 13.8%
Other Income 7 1 -83.3%
Interest Expenditure 3,690 4,149 12.4%
Operating Profit (EBDIT) 1,406 1,648 17.2%
Operating Profit Margin (%) 27.6% 28.4%  
Other Expenses 189 242 28.0%
Depreciation 120 140 16.8%
Profit before Tax 1,104 1,268 14.8%
Tax 153 182 18.6%
Profit after Tax/(Loss) 951 1,086 14.2%
Net profit margin (%) 18.7% 18.7%  
No. of Shares (eoy) (m) 119.1 119.1  
Diluted Earnings per share* 31.9 36.5  
P/E (at current price) 17 15  
*(annualised)      

HDFC's approvals during the third quarter grew by 25% to Rs 15.5 bn and disbursements by 26% to Rs 13.5 bn ( during the nine months of FY01 approvals and disbursements grew by 31% and 30% respectively).

The corporation's aggressive focus on retail market by increasing distribution outlets and enhanced tax incentives provided in the last budget has enabled it to maintain a high growth rate. Approvals and disbursements in respect of individual loans were higher by 52% and 54% respectively during the 9 months of FY01 and retail deposits aggregated to Rs 18 bn, an increase of 43% compared to corresponding previous period.

HDFC's topline and profits growth in the first nine months was around 19% and 18% respectively. Decline in dividend income and lease rentals led to slower growth. Excluding this, revenues grew by an impressive 23%.

Break-up of interest income
(Rs m) 9m FY00 9m FY01 Change
Interest on loans 9,657 11,741 21.6%
Fees and other charges 504 675 33.8%
Dividend income 1,066 958 -10.2%
Profit on sale of investments 360 563 56.3%
Lease rental income 386 318 -17.5%
Other operating income 2,451 2,927 19.4%

At the current market price of Rs 531, HDFC is trading at a P/E multiple of 15 times its third quarter annualised earnings and 13 times its FY01 projected earnings. We have projected an earnings growth of 17% for the year ended March 2001. HDFC's nine months performance is in line with our full year projections.

Equitymaster requests your view! Post a comment on "HDFC's net up 14%". Click here!

  

More Views on News

SHARE INDIA SECURITIES 2020-21 Annual Report Analysis (Annual Result Update)

Nov 18, 2021 | Updated on Nov 18, 2021

Here's an analysis of the annual report of SHARE INDIA SECURITIES for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of SHARE INDIA SECURITIES. Also includes updates on the valuation of SHARE INDIA SECURITIES.

PILANI INVESTMENT & IND. 2020-21 Annual Report Analysis (Annual Result Update)

Nov 10, 2021 | Updated on Nov 10, 2021

Here's an analysis of the annual report of PILANI INVESTMENT & IND. for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of PILANI INVESTMENT & IND.. Also includes updates on the valuation of PILANI INVESTMENT & IND..

MULTI COMMODITY Announces Quarterly Results (2QFY22); Net Profit Down 43.3% (Quarterly Result Update)

Oct 26, 2021 | Updated on Oct 26, 2021

For the quarter ended September 2021, MULTI COMMODITY has posted a net profit of Rs 332 m (down 43.3% YoY). Sales on the other hand came in at Rs 832 m (down 30.5% YoY). Read on for a complete analysis of MULTI COMMODITY's quarterly results.

Indian Railway Finance Corporation IPO: Should You Apply? (IPO)

Jan 18, 2021

Monopolistic railway financer with impeccable asset quality.

LIC HOUSING Announces Quarterly Results (2QFY22); Net Profit Down 68.4% (Quarterly Result Update)

Oct 26, 2021 | Updated on Oct 26, 2021

For the quarter ended September 2021, LIC HOUSING has posted a net profit of Rs 2 bn (down 68.4% YoY). Sales on the other hand came in at Rs 47 bn (down 5.2% YoY). Read on for a complete analysis of LIC HOUSING's quarterly results.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

5-YR ANALYSIS

COMPARE COMPANY

MARKET STATS