HFCs Q3 Results Preview - To Be Softer Than Q2 Due To NIM Contraction: Prabhudas Lilladher

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.For our coverage housing finance companies, assets under management at Rs 3.3 trillion could see 1.9% QoQ growth compared to 0.9% in Q1 FY24 and plus 7.5-9.0% (likely) in case of housing segment for banks.Net interest margin could decline by 20 basis point QoQ to 3.17% as LIC Housing Finance Ltd. could see some moderation in margins. Hence net interest income may fall by 3.7% QoQ. As policy rates have stabilised, NIM for HFCs could improve in FY24E since asset repricing would be faster as compared to liabilities.Disbursal run-rate of LIC Housing Finance is the key monitorable especially given weak credit flows in the last few quarters. Other income might decline by 6% QoQ to Rs 1.16 billion while opex could rise by 7.3% QoQ to Rs 4.75 billion. Hence pre-provision operating profit could dip by 5.9% QoQ to Rs 21.9 billion.We see a 6 bps QoQ decline in provisions to 56 bps as Can Fin Homes Ltd. would see credit costs normalise. Profit after tax may fall by 5.0% QoQ to Rs 13.9 billion. Can Fin Homes remains our preferred pick in HFCs..Click on the attachment to read the full report:.Pressure On Banking Stocks To Persist In Near Term, Say Analysts.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HFCs Q3 Results Preview - To Be Softer Than Q2 Due To NIM Contraction: Prabhudas Lilladher

For our coverage Housing Finance Companies, AuM at Rs 3.3 trillion could see 1.9% QoQ growth compared to 0.9% in Q1’24 and plus 7.5-9.0% (likely) in case of housing segment for banks.

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HFCs Q3 Results Preview - To Be Softer Than Q2 Due To NIM Contraction: Prabhudas Lilladher

For our coverage Housing Finance Companies, AuM at Rs 3.3 trillion could see 1.9% QoQ growth compared to 0.9% in Q1’24 and plus 7.5-9.0% (likely) in case of housing segment for banks.

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