HDFC’s Q3 results are out, and it looks like the company has beaten market estimates for its net profit. Net profit increased by around 11% year-on-year, standing at Rs. 3,261 crores. Moreover, reduced tax expenses helped this company’s bottom line. The tax expenses came at Rs. 787.5 crores for the December quarter as compared with Rs. 826.7 crore in the same period last year.
For more details on this story, read below!
HDFC Beats Analysts’ Estimate
Analysts had estimated that HDFC’s net profit would be Rs. 2,524.9 crores. However, the company managed to secure a net profit of Rs. 3,260.7 crores, as was reported by them on 2 February 2022. This rise happens to be an 11.4% year-on-year increase.
Moreover, significantly lesser tax expenses helped this non-bank lender’s bottom line. The figures about the same are already mentioned above.
India’s most significant housing finance company’s net interest income rose by 7%. Dalal Street had estimated this figure to settle at Rs. 4,107 crores. However, the lender inched out and fixed its net interest income at Rs. 4,284 crores.
Reason for HDFC’s High Net Interest Income
So, what’s the reason for this unexpected growth in the net interest income?
HDFC attributes it to the individual loan segment of their business and its associated robust performance. Assets under management in the individual loan sector witnessed a 16% growth in Quarter 3.
HDFC, in its statement to the stock exchanges, reported that there was a strong demand for home loans. This was seen both in the affordable and the high-end housing segments. Thus increasing sales and new project launches predict a brighter future for the housing sector.
Moreover, December witnessed the 2nd highest loan disbursal in the country’s history. However, this lender saw an erosion in the asset quality. Gross bad loans reached Rs. 12,149 crores from Rs. 10,341 crores of the previous quarter.
HDFC’s stock price rose amid the news of the Q3 results. This company’s lending sector looks pretty strong as many loans were disbursed. Therefore, HDFC’s Q3 effects project positive growth for the company.
Frequently Asked Questions
What is HDFC’s current asset under management?
The company’s overall asset under management to Rs. 6.2 lakh crores.
What is the GNPA (Gross Non-Performing Assets) ratio?
The GNPA stood at 2.32 %, which is moderately higher than 2 % of the previous quarter.
At how much were the shares of HDFC trending on the National Stock Exchange?
Shares of HDFC were trading at Rs. 2,609.95 up at 1.7%.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.