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HDFC: Listing Gains Mask Healthy Growth and Asset Quality - Views on News from Equitymaster

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  • Feb 7, 2018 - HDFC: Listing Gains Mask Healthy Growth and Asset Quality

HDFC: Listing Gains Mask Healthy Growth and Asset Quality

Feb 7, 2018

HDFC declared its results for the third quarter (3QFY18). The institution has reported 13.7% YoY growth in net interest income while net profits surged by 233% YoY during 3QFY18. Here is our analysis of the results.

Standalone financial performance snapshot
(Rs m) 3QFY17 3QFY18 Change 9mFY17 9mFY18 Change
Interest Income 78,610 84,750 7.8% 227,600 246,490 8.3%
Interest Expense 52,860 55,460 4.9% 156,580 165,240 5.5%
Net Interest Income 25,750 29,290 13.7% 71,020 81,250 14.4%
Net interest margins            
Other Income 3,850 3,720 -3.4% 13,030 13,620 4.5%
Other Expense 3,150 4,080 29.5% 10,180 12,150 19.4%
Profit on the sale of investments 30 52,670   9,530 53,340 459.7%
Provisions and contingencies 1,170 16,700 1327.4% 5,520 18,500 235.1%
Profit before tax 25,310 64,900 156.4% 77,880 117,560 51.0%
Tax 7,220 6,980 -3.3% 20,890 20,940 0.2%
Effective tax rate 28.5% 10.8%   26.8% 17.8%  
Deferred Tax Liability 1,080.0 1,220.0   3010.00 3,350.0  
Profit after tax/ (loss) 17,010 56,700 233.3% 53,980 93,270 72.8%
Net profit margin (%) 21.6% 66.9%   23.7% 37.8%  
No. of shares (m)         1597.6  
Book value per share (Rs)*         290.7  
P/BV (x)         6.1  
* (Standalone book value as on 31st Dec 2017)
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