Jan 18, 2001|
HDFC's net up 14%
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.
|Income from Operations
|Operating Profit (EBDIT)
|Operating Profit Margin (%)
|Profit before Tax
|Profit after Tax/(Loss)
|Net profit margin (%)
|No. of Shares (eoy) (m)
|Diluted Earnings per share*
|P/E (at current price)
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
|Interest on loans
|Fees and other charges
|Profit on sale of investments
|Lease rental income
|Other operating income
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.
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