HDFC net profit slips to Rs 9,632 crore in FY19; recommends dividend of Rs 17.50

Housing Development Finance Corporation (HDFC) posted a 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.

The total revenue from operations for HDFC during the financial year ended March 31, 2019, however, grew in comparison to the last financial year. The total revenue from operation during FY19 was Rs 43,348.04 crore, as opposed to 40,689.22 crore posted during FY18. The company's Net Interest Income (NII) for FY19 rose to Rs 11,403 crore compared to Rs 9,635 crore in the previous year, representing a growth of 18 per cent.

For 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. 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.

The lender posted an interest income of Rs 39,240.24 crore during the year under review, as opposed to Rs 33,133.08 crore in the previous financial year. Revenue from dividend income also increased to Rs 1,130.64 crore from Rs 1,079.28 crore. However, 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.

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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 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.

For the quarter under review, HDFC saw an 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. 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. Revenue from dividend income saw a substantial increase to Rs 536.88 crore, in comparison to Rs 331.50 crore.

Announcing the financial results for the fiscal and quarter ended March 31, 2019, the HDFC board also announced a final dividend of Rs 17.50 per equity share of face value of Rs 2 each. "The Board 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," the lender said in a regulatory filing.

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.

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