HDFC Q4 results: Profit jumps 20% to Rs 4,425 crore; Rs 44 dividend announced

Housing Development Finance Corporation Ltd on Thursday reported a 19.59 per cent year-on-year (YoY) rise in standalone net profit at Rs 4,425.50 crore for the March quarter compared with Rs 3,700.32 crore in the same quarter last year. Net interest income (NII) for the quarter jumped 16 per cent to Rs 5,321 crore compared wit Rs 4,601 crore in the same quarter last year. Net interest margin (NIM) for the quarter came in at 3.6 per cent.

Profit before tax stood at Rs 5,398 crore against Rs 4,622 crore YoY, HDFC said.

The housing finance company (HFC) said the monetary policy and interest rate actions did have an impact on the NII during the financial year. Though lending rates increased, there has been a transmission lag between the interest rate increase in borrowing costs and asset repricing, it noted.

HDFC said its asset under management stood at Rs 7.2 lakh crore as of March 31. The NBFC saw significant improvement in asset quality and that the annualised credit costs for the quarter stood at 25 basis points.

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The inherent demand for home loans continues to remain strong, HDFC said. "Growth in home loans was seen predominantly in the mid-income segment and high-end properties. During the year ended March 31, 2023, individual loan disbursements grew by 16 per cent compared to the previous year. In the month of March, the corporation recorded its highest ever monthly individual disbursements. During the year, the average size of individual loans stood at Rs 36.2 lakh compared to Rs 33.1 lakh in the previous year," it said.

Besides, HDFC said 94 per cent of new loan applications in FY23 were received through digital channels.

The mortgage lender declared an interim dividend of Rs 44 per share of face value of 2 each for FY23. The record date for determining the shareholders entitled to the interim dividend, as approved by the board would be Tuesday, May 16. The dividend will be paid from Thursday, June 1 onwards.

Following the results, the stock jumped 2.23 per cent to hit a high of Rs 2,850.80 on BSE.

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