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

FINANCIAL RESULTS
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.

Dividend

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.

TOTAL ASSETS

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%.

Loan Book

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.

Investments

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.

LENDING OPERATIONS

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.

Non-Performing Loans

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.

RESOURCES

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.

DISTRIBUTION NETWORK

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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