HDFC, has reported a 17.9% jump in profits for the year ended March '01. The company's topline however, grew at a slower pace of 18%.
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)
Remarkably, HDFC has improved its operating margins by 30 basis points to 28.9% for FY01. In the fourth quarter OPM has moved up sharply by 230 basis points to 32.9%. In the first nine months, margins witnessed a de-growth of 43 basis points.
HDFC's approvals during the year grew by 29.7% to Rs 68.8 bn and disbursements by 29.2% to Rs 58 bn ( during the nine months of FY01 approvals and disbursements grew by 31% and 30% respectively). Approvals and disbursements with respect to individual loans registered a growth of 53% and 48% respectively fueled by incentives given in the budget. Its healthy capital adequacy ratio of 12.7% is expected to aid the company in expanding its operations further.
The company's recovery performance continued to be excellent. Its net non performing assets to advances ratio declined to 0.81% from 0.9% in FY00.
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. Its retail deposits witnessed a growth of 44% to Rs 27 bn and now accounts for 82% of total deposit base.
At the current market price of Rs 619, HDFC is trading at a P/E multiple of 16 times FY01 earnings and a price to book value ratio of 2 times. The company's performance in general is in line with our projections.
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