Monday, June 28, 2010
LIC HOUSING FINANCE (LICHF) =ANNUAL REPORT= FY10 = EXCELLENT FINANCIALS = FUTURE GROWTH ORIENTED
LIC HOUSING FINANCE
FOR FY 10
The excellent performance of LIC Housing Finance was earlier reviewed in the below mentioned url in this blog on May3rd,2010.
It was pointed out in the above review that the Q4 FY10 EPS has registered good increase to Rs. 22.49 in current Qtr from Rs. 16.18 in Q3 FY10, and Rs. 18.55 in Q4 of FY09.
Judging by the latest qtr performance, going forward, the next annual EPS could scale up to 90 or above.
The Annual Report of LIC HF gives a few more of its performance high lights:
In 3 consecutive years 2007,2008 and 2009, LIC HF grew twice as fast as the Industry.
Was awarded the ‘second best home loan provider’ award by outlook Profit during the year 2009-10.
Reported 69.51% increase in disbursals in 2009-10.
Reduced net NPA to a record low of 0.12% in 2009-10.
Enhanced PAT 24.56% to Rs.662.18 Crore in 2009-10.
Recommended increased dividend of 150% compared to 130% in previous year.
Interest income from housing loans increased by19.47% from Rs.2747.65 cr in FY 09 to Rs.3282.66 Cr in FY10.
Net Interest Income grew by21.33% from Rs.731.04 Cr in FY09 to Rs.886.94 Cr in FY10.
Profit after Tax surged 24.56% from Rs.531.62 Cr in FY09 to Rs.662.18 cr. In FY10.
Funds mobilized grew 51.98% from Rs.11,188.33 Cr in FY09 to Rs.17,004.35 Cr in FY10.
Sanctions (Ind+Proj) increased 65.55% from Rs.10,898.47 Cr in FY 09 to Rs.18,043.17 Cr in FY10. Of this,1,01,828 loans were individual loans for Rs.14,151.12 cr. Balance accounts for Project loans, which are for shorter periods and gives better yields than Individual loans.
Disbursements (Ind + Proj) grew 69.51% from Rs.8,762.01 Cr in FY09 to Rs.14,852.92 Cr in FY10. Of this, Individual loans disbursed were 97,863 loans for Rs.12,447.73 Cr
Loan Portfolio grew 37.58% from Rs.27,679.28 Cr in FY09 to Rs.38,081.38 Cr in FY10.
Net Interest Margin declined by 25 basis points from 2.95% In Fy09 to 2.70% in FY10.
Return on Equity reduced by 425 basis points from 23.80% in FY09 to 199.55% in FY10 on account of 65.95% growth in equity holders’ fund due to increase in capital and retained profit in FY10.
Net Profit Margin improved by77 basis points from 18.31% in FY09 to 19.08% in FY10.
ASSET QUALITY :
Gross NPA declined by 38 basis points from 1.07 % in FY09 to 0.12% in FY10.
Net NPA levels declined by 9 basis points from 0.21 points in FY09 to 0.12% in FY10.
SHAREHOLDER’S VALUE :
EPS grew 17.36% from 62.59 in FY09 to Rs.73.46 in FY10.
FUTURE PLANS :
Plans to disburse Rs.20,000 Cr this fiscal and take its loan book above Rs.50,000 Cr mark.
23 more offices and appointment of more new Agents planned for this Fiscal.
The subsidiary LICHFL Financial services Ltd is expected to expand its presence in the country and increase its business significantly.
The subsidiary, LICHFL carehomes ltd is expected to commence construction activities on its new project at Bhubaneswar.
The subsidiary, LICHFL Asset Management company Pvt Ltd is expected to commence its operations in REAL ESTATE sector this Fiscal.
The company has launched a new line of Business ‘property services division’ across the country in select centres. Its functions include all activities involved in enabling a prospective homebuyer select the property up to taking the possession of the same.
LICHF is very keen to make foray into the Banking sector as Union Budget for FY2010-11 has proposed Banking licenses to private sector players including NBFCs and once the RBI guidelines are in place, necessary approvals will be obtained.
It is clear – that LIC HF is making all preparations for foraying into other sectors like Banking – even while strengthening its presence in Housing Finance. It is also trying to become a ONE STOP SHOP for housing needs – rather than being a mere Housing finance shop.
It is ambitious enough to aim for the No.1 spot in Housing Finance sector.
At the same time – it is cautious enough – to keep its NPAs at LOWEST LEVELS displaying sufficient business acumen. Its future looks highly growth oriented and secure.
Therefore, LICHF seems to be an excellent buy – at current prices.
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