LIC Housing Finance Q4FY14 Net Profit Surges By 17%

LIC Housing finance, one of the largest housing finance companies in India, has posted an impressive set of numbers for the quarter ended and year ended on 31st, March, 2014. The company's total income for Q4 FY14 has recorded a strong growth of 19% (yoy) to Rs 2478 crore as against Rs 2075 crore during the same period previous year. Revenue from operations also grew by 19% from Rs 2028 crore in Q4FY13 to Rs. 2407 crore in Q4FY14.

Further, net interest income of the company went up by 16% to Rs 533 crore in Q4FY14 over the same period of last year due to increase in loan disbursement. However its net interest margin (NIM) stood at 2.40% in Q4FY14 against 2.45% in Q4FY13.NIM marginally decreased during the quarter due to increase in finance cost of the company.Finance cost of the comapny during the quarter came up to 76.7% of total income from 76.3% in Q4FY13.Net profit of the company during the quarter witnessed a strong growth of 17% and stood at Rs 370.02 in Q4 FY14 as against Rs 316.16 in Q4FY13.

As regards to the yearly performance, the company's total income stood at Rs 9335 crore for FY14 as against Rs 7659 crore in FY13, with a yearly growth of 22%. Moreover its revenue from operations grew by 22% to Rs 9073 crore during the said year. Net profit of the company showed a sharp increase of 29% in FY14 and stood at Rs 1317.19 crore as compared to Rs 1023.21 crore in the corresponding period of the previous year.
The outstanding mortgage portfolio of the company as on 31st, March, 2014 stood at Rs 91341 crore as against Rs 77813 crore on 31st, March, 2013, recording a growth of 17%.The company provide mainly two types of loan i.e. individual loan and projects loan. Individual Loan Portfolio(contribute approx 97% of total loan portfolio) went up by a growth of 18% and stood at Rs 88559 crore as on 31st, March, 2014.

On assets quality front, the company witnessed marginal deterioration. Gross NPAs of the company as on 31st , March FY14 stood at 0.67% as against 0.61% as on 31st, March FY14 while its net NPAs came up to 0.39% as on 31 March FY14 as compare with 0.36% of same period last year. 

Commenting on the performance of the company, Managing Director & CEO, Sunita Sharma, said, “This was a year where the macros have been very challenging. In spite of the difficult environment we have delivered yet another year of strong performance in all the areas of operations- portfolio growth, margin expansion and continue to maintain industry best asset quality. We are stepping into our 25th year of operation and would like to make it memorable by achieving greater heights” 

Today after announcement of the results, Board of directors of the company has recommended a dividend of Rs 4.50 per equity share of Rs 2 each. At CMP of Rs 272.95, the stock is trading at 2.12 times to its book value(P/Bv) while industry average P/Bv ratio comes to 4.35 time which shows that the stock is relatively undervalued.