Wednesday, May 11, 2011
Housing Development Finance Corporation Limited = HDFC = RESULTS FO = Q4 & FY 2011 = EXCELLENT PERFORMANCE = FY 2011 PROFIT AFTER TAX UP BY 25% YoY
Housing Development Finance Corporation Limited
NSE Symbol HDFC
FOR FY 2011
For FY 2011, HDFC’s Net Operating Income (inclusive of profit on sale of investments) was Rs.5,318.13 Cr as against Rs.4,297.75 Cr in the previous year – an increase of 24%.
HDFC reported a profit before tax of Rs.4,866.96 Cr as compared to Rs.3,915.99 Cr for the previous year – an increase of 24%.
After providing Rs.1,332 Cr for taxes, the profit after tax for FY 2011 increased by 25% to Rs.3,534.96 Cr as compared with Rs.2,826.49 Cr in the previous year.
The Board of Directors recommended payment of dividend for FY 2011 of Rs.9 per equity share of face value of Rs.2 each as against Rs.36 per equity share of face value of Rs.10 each in the previous year ( Rs.7.2 per equity share of face value of Rs.2 each).
Financials for the quarter ended March 31, 2011
For the quarter ended March 31, 2011, the Net Operating Income (inclusive of profit on sale of investments) stood at Rs.1,654.90 Cr as against Rs.1,339.78 Cr in the corresponding quarter of the previous year – an increase of 24%.
HDFC’s profit before tax stood at Rs.1,553.95 Cr as against Rs.1,265.88 Cr in the corresponding quarter of the previous year – an increase of 23%.
After providing Rs.412 Cr for taxes, the profit after tax for the quarter ended March 31, 2011 increased by 23% to Rs.1,141.95 Cr as against Rs.926.38 Cr in the Corresponding quarter last year.
As at March 31, 2011, the total assets of HDFC stood at Rs.1,32,727 Cr as against Rs.1,11,763 Cr as at March 31, 2010 – an increase of 19%.
As at March 31, 2011, the loan book stood at Rs.1,17,127 Cr as against Rs.97,967 Cr in the previous year – an increase of 20%. During the year, the Corporation sold loans amounting to Rs.4,379 Cr. The growth in the loan book would have been 24% had the Corporation not sold any loans during the year.
The spread on loans over the cost of borrowings for the year stood at 2.33% as against 2.31% in the previous year.
As at March 31, 2011, the unrealised gains on HDFC’s listed investments amounted to Rs. 21,392 Cr (previous year Rs.16,668 Cr). This excludes the appreciation in the
value of the unlisted investments.
Approvals and Disbursements
Loan approvals during the year were Rs.75,185 Cr as compared to Rs.60,611 Cr in the previous year, representing a growth of 24%.
Loan disbursements during the year were Rs.60,314 Cr as against Rs.50,413 Cr in the previous year, representing a growth of 20%.
Cumulative loan approvals and disbursements as at March 31, 2011 were Rs.3,73,246 Cr and Rs.3,02,533 Cr respectively. This is in respect of approximately 3.8 million housing units.
The demand for individual home loans continued to be robust, despite rising interest rates. Other enabling factors included rising disposable incomes and continued fiscal incentives on housing loans. During the year, individual approvals grew at 25% and disbursements grew by 27% as compared to the previous year. The average size of individual loans stood at Rs.18.6 lakhs.
Gross non-performing loans as at March 31, 2011 amounted to ` 903.85 Cr. This is equivalent to 0.77% of the portfolio (as against 0.79% in the previous year). This is the twenty-fifth consecutive quarter end at which the percentage of non-performing loans have been lower than the corresponding quarter in the previous year.
Based on a six months overdue basis, the non-performing loans as at March 31, 2011 stood at 0.46% of the loan portfolio as against 0.53% in the previous year.
In terms of the prudential norms as stipulated by the National Housing Bank, the Corporation is required to carry a provision of Rs.813.53 Cr, which includes the provisioning of Rs.446.54 Cr on standard assets in respect of housing loans granted under the Dual Rate Home Loan scheme.
The balance in the provision for contingencies account as at March 31, 2011 stood at Rs. 1,124.37 Cr, which is equivalent to 0.95% of the portfolio. Thus as at March 31, 2011, the Corporation’s net non-performing loans was nil.
As at March 31, 2011, outstanding deposits stood at Rs.24,625 Cr. CRISIL and ICRA have for the sixteenth consecutive year reaffirmed “AAA” rating for HDFC’s deposits. During the year, loans drawn from commercial banks and the National Housing Bank amounted to Rs.32,753 Cr.
HDFC raised Rs.13,865 Cr through private placement of non-convertible debentures (NCDs) during the year under review. The NCDs were “AAA” rated by both CRISIL and ICRA. During the year, HDFC also raised Rs.1,000 Cr through the issue of long-term Unsecured Redeemable Non-Convertible Subordinated Debentures.
CAPITAL ADEQUACY RATIO
HDFC’s capital adequacy ratio stood at 14% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 12.2% against a minimum requirement of 6%.
COST INCOME RATIO
For the year ended March 31, 2011, the cost to income ratio stood at 7.7% as compared to 7.9% in the previous year.
CONSOLIDATED FINANCIAL RESULTS
In terms of the consolidated financial accounts, the profit after tax for the year ended March 31, 2011 stood at Rs.4,528.41Cr as against Rs.3,240.98 Cr – an increase of 40%.
REVIEW OF KEY SUBSIDIARY COMPANIES
HDFC Standard Life Insurance Company Limited (HDFC Life)
Gross premium income of HDFC Life for the year ended March 31, 2011 stood at Rs.9,004 Cr as compared to Rs.7,005 Cr in the previous year a growth of 29%. The sum assured in force for the current year was Rs.98,918 Cr as compared to Rs.72,610 Cr in the previous year.
HDFC Asset Management Company Limited (HDFC-AMC)
As at March 31, 2011, HDFC-AMC managed 36 debt, equity and exchange traded fund schemes of HDFC Mutual Fund. During the year, the average assets under management stood at Rs.95,950 Cr (which is inclusive of average assets under discretionary portfolio management/advisory services).
For the year ended March 31, 2011, HDFC-AMC reported a profit after tax of Rs.242.18 Cr as against Rs.208.37 Cr in the previous year.
HDFC ERGO General Insurance Company Limited (HDFC-ERGO)
HDFC-ERGO offers a complete range of insurance products like motor, health, travel, home and personal accident in the retail segment and customised products like property, marine, aviation and liability insurance in the corporate segment.
HDFC-ERGO recorded a growth of 40% during the year, with a Gross Written Premium (including cessions from the motor pool) of Rs.1,408 Cr as against Rs.1,005 Cr in the previous year.
HDFC’s distribution network spans 289 outlets which include 71 offices of HDFC’s distribution company, HDFC Sales Private Limited (HSPL). In addition, HDFC covers over 90 locations through its outreach programmes. Distribution channels form an integral part of the distribution network with home loans being distributed through HSPL, HDFC Bank Limited and third party direct selling associates.
To cater to non-resident Indians, HDFC has an office in London, Dubai and Singapore and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi and Saudi Arabia – Al Khobar, Jeddah and Riyadh.
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