HDFC Profit Surges Threefold In Q3 On One-Time Gain
HDFC’s net profit rises 233 percent to Rs 5,670 crore in October-December.
Housing Development Finance Corporation Ltd.’s quarterly profit rose more than threefold surpassing analyst estimates as the mortgage lender made a one-time gain by selling part of its stake in the initial public offering of its life insurance arm.
Net profit surged 233 percent on a yearly basis to a record Rs 5,670 crore in the three months ended December, according to its stock exchange notification. That’s the fastest pace of growth since the company went public. The profit also beat the Rs 4,556 crore consensus estimate of analysts surveyed by Bloomberg.
The company reported a one-time gain of Rs 3,675 crore after selling a stake in HDFC Standard Life Insurance. Net interest income rose 14 percent year-on-year to Rs 2,929 crore for the December-ended quarter. Its loan book grew at 19.7 percent compared to 17.7 percent in the September quarter.
Asset quality remained stable. HDFC’s gross non-performing assets stood at 1.15 percent of the loan book in the quarter ended December, compared to 1.14 percent in the previous three months.
The company’s board also approved fund-raising of up to $1.5 billion (about Rs 9,500 crore) through offshore bond sales. It also approved to raise Rs 35,000 crore in various tranches via debentures.
Shares of HDFC rose as much as 2.7 percent to a record of Rs 1,959.75 apiece after the results were announced. HDFC trades at 28 times its trailing 12-month earnings per share and 24 times its estimates for the coming year. The stock has returned 14 percent so far this year.
