HDFC Q2 consolidated PAT at Rs. 4599.68 crore

HOUSING DEVELOPMENT FINANCE CORP.LTD. has reported financial results for the period ended September 30, 2020.

Financial Results (Q2 FY20-21) - QoQ Comparison

The company has reported total income of Rs.34090.45 crores during the period ended September 30, 2020 as compared to Rs.29959.34 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.4599.68 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.3613.60 crores for the period ended June 30, 2020.

The company has reported EPS of Rs.25.99 for the period ended September 30, 2020 as compared to Rs.20.78 for the period ended June 30, 2020.

Financials	Q2 FY20-21	Q1 FY20-21	% Change
Total Income	₹ 34090.45 crs	₹ 29959.34 crs	13.79%
Net Profit	₹ 4599.68 crs	₹ 3613.60 crs	27.29%
EPS	₹ 25.99	₹ 20.78	25.07%

Financial Results (Q2 FY20-21) - YoY Comparison

The company has reported total income of Rs.34090.45 crores during the period ended September 30, 2020 as compared to Rs.32850.89 crores during the period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.4599.68 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.10388.61 crores for the period ended September 30, 2019.

The company has reported EPS of Rs.25.99 for the period ended September 30, 2020 as compared to Rs.59.80 for the period ended September 30, 2019.

Financials	Q2 FY20-21	Q2 FY19-20	% Change
Total Income	₹ 34090.45 crs	₹ 32850.89 crs	3.77%
Net Profit	₹ 4599.68 crs	₹ 10388.61 crs	-55.72%
EPS	₹ 25.99	₹ 59.80	-56.54%

Financial Results (6 months ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.64049.79 crores during the 6 months period ended September 30, 2020 as compared to Rs.56090.71 crores during the 6 months period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.8213.28 crores for the 6 months period ended September 30, 2020 as against net profit / (loss) of Rs.13482.99 crores for the 6 months period ended September 30, 2019.

The company has reported EPS of Rs.46.85 for the 6 months period ended September 30, 2020 as compared to Rs.77.66 for the 6 months period ended September 30, 2019.

Financials	Half-Year Ended FY20-21	Half-Year Ended FY19-20	% Change
Total Income	₹ 64049.79 crs	₹ 56090.71 crs	14.19%
Net Profit	₹ 8213.28 crs	₹ 13482.99 crs	-39.08%
EPS	₹ 46.85	₹77.66	-39.67%

- The average size of individual loans stood at ₹ 26.7 lac (PY: ₹ 27 lac).

- As at September 30, 2020, the assets under management stood at ₹ 5,40,270 crore as against ₹ 4,90,072 crore in the previous year.

- As at September 30, 2020, individual loans comprise 75% of the Assets Under Management (AUM).

- On an AUM basis, the growth in the individual loan book was 9%. The growth in the non-individual loan book was 13%. The growth in the total loan book on an AUM basis was 10%.

- During the quarter ended September 30, 2020, the Corporation assigned loans amounting to ₹ 3,026 crore to HDFC Bank. Loans sold in the preceding 12 months amounted to ₹ 14,138 crore (PY: ₹ 23,767 crore).

- As at September 30, 2020, the outstanding amount in respect of individual loans sold was ₹ 64,974 crore. HDFC continues to service these loans.

- The growth in the individual loan book, after adding back loans sold in the preceding 12 months was 15%. The growth in the total loan book after adding back loans sold was 15%.

Collections, Non-Performing Assets (NPAs) & Provisioning

The overall collection efficiency for individual loans for the month of September 2020 (the first month after the moratorium) was 96.3%. The collection efficiency for nonmoratorium customers stood at 99.5%. As per regulatory norms, the gross non-performing loans as at September 30, 2020 stood at ₹ 8,511 crore. This is equivalent to 1.81% of the loan portfolio.

The non-performing loans of the individual portfolio stood at 0.84% while that of the non-individual portfolio stood at 4.19%. The quarter ended September 30, 2020, saw resolutions in certain non-individual loans.

If the Honourable Supreme Court order of maintaining the classification of accounts as status quo till further orders were not to be considered, the non-performing loans would have been only two basis points higher at 1.83% of the loan portfolio; with individual NPLs at 0.88% and non- individuals NPLs at 4.19%.

As per regulatory norms, the Corporation is required to carry a total provision of ₹ 5,621 crore. Of this, ₹ 3,168 crore is towards provisioning for standard assets and ₹ 2,453 crore is towards non-performing assets.

The provisions as at September 30, 2020 stood at ₹ 12,304 crore. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 2.60%.

The Corporation's Expected Credit Loss charged to the Statement of Profit and Loss for the half-year ended September 30, 2020 stood at ₹ 1,635 crore (PY: ₹ 1,644 crore).

In August 2020, the Corporation raised ₹ 10,000 crore of equity capital through a Qualified Institutions Placement. The Corporation also received ₹ 307 crore upfront through the issue of warrants.

The Corporation's capital adequacy ratio stood at 20.7%, of which Tier I capital was 19.5% and Tier II capital was 1.2%. As per the regulatory norms, the minimum requirement for the capital adequacy ratio and Tier I capital is 14% and 10% respectively.

Shares of HOUSING DEVELOPMENT FINANCE CORP.LTD. was last trading in BSE at Rs.1922.75 as compared to the previous close of Rs. 1934.25. The total number of shares traded during the day was 50371 in over 3562 trades.

The stock hit an intraday high of Rs. 1947 and intraday low of 1907.7. The net turnover during the day was Rs. 96929652.

Source : Equity Bulls

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