HDFC share price falls over 2% ahead of Q1 earnings

HDFC share price fell over 2% on Thursday ahead of the firm's Q1 earnings set to be announced later in the day. HDFC shares touched an intraday low of Rs 1,837, falling 2.23% on BSE. The stock has lost 1.53% in one week and 23.51% since the beginning of this year.

HDFC share price is trading higher than 50 day and 100 day moving averages but lower than 5 day, 20 day and 200 day moving averages. The large cap share has declined 13.27% in one year. Over 1.20 lakh shares changed hands amounting to turnover of Rs 22.40 crore on BSE.

Market cap of the mortgage lender fell to Rs 3.20 lakh crore. At 1:35 pm, the share was trading 1.70% or Rs 32 lower at Rs 1,847 against previous close of Rs 1,879.50. The stock has been lost 2.45% in the last 2 days.

Prabhudas Lilladher expects net interest income to be tepid on the back of subdued loans, "particularly on the corporate side and due to competition flaring up on the individual home loan segment". Income is seen at Rs 2,793.8 crore. NIM, on the other hand, is seen at 2.48 per cent.

Slower disbursals due to extended lockdown, higher yielding book stress (developer/LAP) and rub-off on individual lending due to competitive intensity from top PSU banks would imply slight NIM pressures this quarter," the brokerage said.

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Nirmal Bang Institutional Equities said, "We expect NBFCs to report a weak quarter. Although the stress had already started surfacing before the Covid-19 outbreak, we think that the NPA-formation in this segment would accelerate. In this backdrop, we expect HDFC to report higher provisioning, although it would still be relatively better than peer firms." Net profit is seen logging a sequential growth of 27.3 per cent to Rs 2,842.7 crore in Q1. NII is pegged at Rs 3,457.7 crore.

In Q4 of last fiscal, HDFC reported a 10 per cent fall in consolidated net profit to Rs 4,341.58 crore for the fourth quarter ended March 31 against net profit of Rs 4,811.26 crore in January-March quarter of 2018-19.

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The board proposed a dividend of Rs 21 per share of the face value of Rs 2 per unit.  On standalone basis, profit of HDFC in Q4 slipped by 22 per cent at Rs 2,232.55 crore as against Rs 2,861.58 crore in the same quarter previous fiscal.

After providing for tax of Rs 460 crore, the reported profit after tax for the quarter ended March 31, 2020 stood at Rs 2,233 crore and for the whole year it was Rs 17,770 crore.

By Aseem Thapliyal

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