HDFC March Quarter Profit Falls 22% To Rs 2,233 Crore, Board Announces Rs 21 Dividend

Mortgage lender Housing Development Finance Corporation (HDFC) on Monday reported a net profit of Rs 2,232.53 crore for the quarter ended March 31. That marked a decline of 21.98 per cent compared to the corresponding period a year ago. In a regulatory filing, HDFC said its total revenue from operations for the fourth quarter of financial year 2019-20 stood at Rs 11,975.72 crore. For the quarter ended March 31, 2019, the lender had registered a total revenue of Rs 11,580.05 crore.

HDFC’s net interest income – which is the difference between the interest earned and the interest expended – rose 13.54 per cent year-on-year to Rs 3,564 crore in the January-March period, according to its filing.

Net interest margin – a key gauge of profitability for lenders – came in at 3.4 per cent in the fourth quarter of 2019-20, as against 3.3 per cent in the year-ago period.

HDFC made a provision of Rs 1,274 crore in the quarter ended March 31, including the impact of COVID-19, as against Rs 398 crore in the year-ago period.

HDFC said the impact of the coronavirus pandemic was felt towards the last fortnight of financial year 2019-20. Retail loan disbursements were disbursed in the later half of March, it added.

HDFC’s board recommended a dividend of Rs 21 per equity share of face value of Rs 2 each for financial year 2019-20.

The board reviewed the company’s performance and the impact of COVID-19, and decided to retain the dividend at the same level as last year.

There remains a high level of uncertainty about the duration of the lockdown and the time required for life and business operations to normalise, HDFC said. The mortgage lender said it will keep its investors and other stakeholders updated on material developments pertaining to the impact of COVID-19 on business.

HDFC said its gross non-performing assets (NPAs) were at Rs 8,908 crore as of March 31, which was 1.99 per cent of its loan portfolio.

Shares in HDFC had ended 4.99 per cent lower at Rs 1,516.55 apiece on the BSE on Friday, ahead of the earnings announcement, underperforming the benchmark S&P BSE Sensex index which fell 0.84 per cent.

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