HDFC posts 11.01 per cent net profit: misses estimates

HDFC (Housing Development Finance Corporation) declared its Q3FY16 results on January, 27. The company’s consolidated net sales increased by 2.5 per cent to Rs 12240 crore in Q3FY16 as compared to same period in previous fiscal year. Its total expenditure decreased by 3.4 per cent to Rs 4638 crore in Q3FY16 on a yearly basis.

HDFC’s EBITDA increased by 6.47 per cent to Rs 7602 crore in Q3FY16 as compared to same period in previous financial year. The company’s interest expense declined by just 0.76 per cent to Rs 5103 crore in Q3FY16 on a yearly basis. It posted net profit of Rs 2419 crore with a growth of 11.01 per cent in Q3FY16 as compared to same period in previous fiscal year. HDFC’s asset quality remained strong as gross non-performing loans stood at 0.72 per cent of the total assets.

Considering segment wise revenue front, HDFC earned 61.95 per cent from Housing Construction and Real Estate segment; 30.62 per cent from Life Insurance segment; 4.11 per cent from General Insurance segment; 2.81 per cent from Asset management segment; and remaining 0.51 per cent from others during December 2015 quarter.

On nine month financials, HDFC’s net sales increased by 7.53 per cent to Rs 36118 crore in 9MFY16 as compared to same period in previous financial year. The company’s provision and contingencies expense increased by 41.76 per cent to Rs 212 crore during 9MFY16 on a yearly basis. Its EBITDA too rose by 9.28 per cent to Rs 22661 crore in 9MFY16 on a yearly basis. The net profit of HDFC also increased by 10.03 per cent to Rs 6730 crore in 9MFY16 as compared to same period in previous financial year.

The share price of HDFC declined by 2.64 per cent on bourses in early trades; and is trading at Rs 1153.85 on an intraday basis.

HDFC is engaged in financing by way of loans for the purchase or construction of residential houses; commercial real estate; and certain other purposes, in India. The company's segments include loans; life insurance; general insurance; asset management; and others. It offers insurance products, such as motor, health, travel, home, and personal accident in the retail division; and customized products, such as property, marine, aviation and liability insurance in the corporate division. HDFC also provides portfolio management; mutual fund; property investment management; project management; investment consultancy; and property related services. Its distribution network includes around 4014 branches and 11766 automated teller machines in around 2,464 locations.