HDFC quarterly results: Net profit to dividend, 5 key takeaways from Q4

Home loans and housing finance company, Housing Development Finance Corporation (HDFC) reported its March quarter results today. The company is a reputed player in the mortgage business.  It posted a 27% growth in net profit of the last quarter of 2018 financial year. While total income of the company grew 24.3% during quarter. The board of the company has also proposed a final dividend which is subject to approval of the board members. basis. The total revenue from operations for the quarter under review was reported to be Rs 11,580.05 crore, as opposed to Rs 9,317.02 crore.

The board also approved the re-appointment of Naseer Munjee and JJ Irani as independent directors for a term of two years, effective from July 21, 2019. The appointment will be subject to approval of the shareholders at the HDFC's Annual General Meeting.

Here are 5 key takeaways from the Q4 posting by HDFC:

1. Decline in YoY net profit: The (standalone) net profit of Rs 9,632.46 crore during the financial year 2018-19. The housing finance company had posted a net profit after tax of Rs 10,959.34 crore in the previous fiscal, translating into a decline of 12.10 per cent.

2. Growth in QoQ net profit: In the March quarter of FY19, HDFC posted a standalone net profit of Rs 2,861.58 crore. The lender had posted a net profit of Rs 2,256.68 crore during the corresponding period last fiscal, amounting to an increase of 26.8 per cent on an annual.

3. Net Interest Income: The company's Net Interest Income (NII) for FY19 grew to Rs 11,403 crore compared to Rs 9,635 crore in the previous year, representing a growth of 18 per cent. The lending company posted an interest income of Rs 39,240.24 crore during the year against Rs 33,133.08 crore in the previous financial year. 

4. Final diivdend: The Board also recommended a final dividend of Rs 17.50 per equity share of face value of Rs 2 each for the financial year 2018-19. The total dividend for the year (including the interim dividend of Rs 3.50 per equity share) is Rs 21 per equity share as against Rs 20 per equity share for the previous year.

Other elements of the results:

1. The asset quality, HDFC saw its gross Non Performing Assets (NPAs) at Rs 4,777 crore up until March 31, 2019. This amount is equivalent to 1.18 per cent of the loan portfolio. 

2. The non-performing loans of the individual portfolio stood at 0.70 per cent while that of the non-individual portfolio stood at 2.34 per cent.

3. Revenue from dividend income also increased to Rs 1,130.64 crore from Rs 1,079.28 crore. While the total revenue from operation during FY19 was Rs 43,348.04 crore, as opposed to 40,689.22 crore posted during FY18. 

4. Profit on sale of investments took a hit during the past fiscal, falling down to Rs 1,212.35 crore as opposed to Rs 5.609 crore during FY18.

5. Increase in profit from sale of investment to Rs 321.01 crore from Rs 298.01 crore during the corresponding quarter in the previous fiscal. 

6. Revenue from interest income also increased during March quarter to Rs 10,342.97 crore, as opposed to Rs 8.605.40 crore during the same period previous fiscal.