Mumbai, Oct. 21: HDFC Ltd today reported a 10 per cent rise in net profit at Rs 1,266.33 crore for the second quarter ended September 30 compared with Rs 1,151.12 crore in the same period last year.
Analysts had expected the mortgage firm to report a net profit of around Rs 1,240 crore.
A robust loan portfolio, aided by a 29 per cent rise in individual borrowing, contributed to the growth in the bottomline.
As on September 30, loans stood at Rs 1,84,886 crore against Rs 1,55,128 crore in the previous year.
Individual borrowings comprised 70 per cent of the total loans, with 91 per cent of the incremental growth during the first half coming from this segment.
Further, the net interest margin (NIM) — a key measure of profitability — rose to 4.1 per cent from 3.9 per cent in the preceding quarter.
Other income of around Rs 87 crore from the sale of investments also boosted the numbers.
Total income on a standalone basis increased to Rs 5,945.94 crore during the quarter from Rs 5,269.45 crore in the year-ago period.
During the first half of the year, the company clocked a 13.3 per cent rise in standalone net profit at Rs 2,439.43 crore against Rs 2,153.03 crore in the same period a year ago.
On a consolidated basis, the company reported a 26 per cent increase in profit after tax at Rs 3,598.27 crore for the first half of this fiscal compared with Rs 2,850.76 crore a year ago.
Commenting on the asset quality, HDFC said gross non-performing loans as on September 30 stood at Rs 1,473 crore — equivalent to 0.79 per cent of the loan portfolio. This is marginally higher than 0.77 per cent in the previous year.
“HDFC reported in-line standalone earnings for the quarter. Given the challenging macro developments, we believe within the BFSI space, defensive names such as HDFC may not underperform the rest of the sector despite its rich valuations,’’ Vaibhav Agrawal of Angel Broking said.
The HDFC scrip today gained 0.23 per cent to close at Rs 820.45 apiece on the Bombay Stock Exchange.
Meanwhile, the company said its non-executive vice-chairman Keshub Mahindra and independent director Shirish B. Patel had resigned from the board with immediate effect.