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HDFC: Gains from Insurance Subsidiary a Shot in the Arm - Views on News from Equitymaster
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  • Nov 13, 2017 - HDFC: Gains from Insurance Subsidiary a Shot in the Arm

HDFC: Gains from Insurance Subsidiary a Shot in the Arm
Nov 13, 2017

HDFC declared its results for the second quarter (2QFY18). The institution has reported 13.7% YoY growth in net interest income while net profits have risen by 15% YoY during 2QFY18. Here is our analysis of the results.

Standalone financial performance snapshot
(Rs m) 2QFY17 2QFY18 Change 1HFY17 1HFY18 Change
Interest Income 75,440 81,470 8.0% 149,020 161,770 8.6%
Interest Expense 52,460 55,340 5.5% 103,720 109,780 5.8%
Net Interest Income 22,980 26,130 13.7% 45,300 51,990 14.8%
Net interest margins            
Other Income 5,600 6,140 9.6% 13,190 7,250 -45.0%
Other Expense 2,050 2,250 9.8% 4,320 4,780 10.6%
Provisions and contingencies 950 950 0.0% 1,600 1,800 12.5%
Profit before tax 25,580 29,070 13.6% 52,561 52,660 0.2%
Tax 7,310 8,060 10.3% 15,600 16,090 3.1%
Effective tax rate 28.6% 27.7%   29.7% 30.6%  
Deferred Tax Liability 0.0 0.0     0.0  
Profit after tax/ (loss) 18,270 21,010 15.0% 36,961 36,570 -1.1%
Net profit margin (%) 24.2% 25.8%   24.8% 22.6%  
No. of shares (m)         1595.1  
Book value per share (Rs)*         255.6  
P/BV (x)         6.6  

* (Standalone book value as on 30th Sep 2017)

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Nov 24, 2017 09:17 AM

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