Mumbai, July 11: HDFC Ltd, the country’s largest housing finance company, today met Street expectations by reporting an 18.6 per cent increase in net profits at Rs 1,001.91 crore in the first quarter ended June 30.
In the same quarter a year ago, it had reported a net profit of Rs 844.53 crore.
Income from operations leapt almost 30 per cent to Rs 4,914.71 crore from Rs 3,800.67 crore in the year-ago period.
With profit on sale of investments standing at over Rs 20 crore, total income during the quarter stood at Rs 4,934.95 crore (Rs 3,816.93 crore).
HDFC said that as on June 30, its loan book stood at Rs 1,48,262 crore against Rs 1,24,168 crore in the same period last year. It added that the growth in the individual loan book stood at 29 per cent, whereas the non-individual loan book grew 14 per cent.
Indicating that individual loans had played a key role behind the jump in its overall advances, HDFC said that during the quarter, around 90 per cent of the increase were because of the increase in the individual loan book.
Net interest income of the mortgage lender rose to Rs 1,372.55 crore from Rs 1,170.86 crore, while its net interest margins were steady at 4 per cent.
Vaibhav Agrawal, vice-president research-banking at Angel Broking, said the results were largely in line with expectation. He added that HDFC had continued to grow its loan book faster than the industry growth rate in home loans.
The industry growth rate in home loans has been slowing down because of the high interest rate environment and a subdued economic outlook.
“Overall, earnings growth was largely in line with expectations, suggesting that spreads and asset quality too would have been more or less in line. The stock is trading like a defensive and valuations are already factoring in a premium… That said, in the near-term, given the macro-concerns, the stock will continue to command a weightage in defensive portfolios,” he added.