HDFC = RESULTS FOR = Q2 FY 2012 = Q/E SEP,2011 = NPT UP 15%QOQ & 20.2%YOY = NET SALES UP 40.27%YOY

Housing Development Finance Corporation Limited

NSE Symbol        HDFC

RESULTS FOR Q2 FY 2012

ENDING SEP,2011

HDFC IS UNDOUBTEDLY THE most recognized name in Housing Finance.

It manages to grow above the rest of the pack almost always – in its specialty Business, namely Housing Finance. In Q2 FY 12 also, it has grown well.

Net Sales has grown to Rs.4077.05 cr – compared to Rs.3800.67 cr (Up by 7.27%) in the preceding qtr of Q1 FY 12 – and Rs.2906.55 cr (Up by 40.27%) in the corresponding qtr of Q2 FY 11.

Total Expenditure stands at Rs.140.93 cr in Q2 FY 12 – compared to Rs.131.14 cr (Up by 7.47%) from previous qtr and Rs.119.13 cr (Up by 18.3%) in corresponding Qtr.

Profit from Operations stands at Rs.3936.12 cr in Q2 FY 12 – compared to Rs.3669.53 cr in preceding qtr (up by 7.26%) – and Rs.2787.42 Cr in corresponding qtr (Up by 41.21%).

Interest, which is really the main expenditure, stands at Rs.2690.51 cr –compared to Rs.2514.93 cr in previous qtr (Up by 6.98%) – and Rs.1717.55 cr in corresponding qtr (Up by 56.65%). We can see that Interest has grown proportionately more than the Profit from operations.

Profit  before tax stands at Rs.1337.70 cr – compared to Rs.1175.53 cr in preceding qtr (Up by 13.8%) – and  Rs.1133.54 cr in corresponding qtr (Up by 18.01%).

Net Profit stands at Rs.970.70 cr in Q2 FY 12 – compared to rs.844.53 cr in preceding qtr (Up by 14.94%) – and Rs.807.54 cr in corresponding Qtr (up by 20.2%). The jump in Net profit is quite impressive.

Basic EPS on a Face Value of Rs.2 stands at Rs.   6.6 in Q2 FY 12; Rs.5.75 in Q1 FY 11; Rs.7.76 in Q4 FY 11; Rs.6.09 in Q3 FY 11 and Rs.5.53 in Q2 FY 11.

On this Basis, annual EPS will be around Rs.25.

Current Market Price is Rs.653.10 and 52 week high price  is Rs.738.80 and 52 week low price  is Rs.582.30.

The Current Price Earning Ratio therefore is 26.12.

HDFC is planning to enter into Education sector in a big way. Earlier, it had also entered into Education loan sector.

Considering the consistent improvement in HDFC’s operations, its reputation and and its almost unlimited field of operations, HDFC is a good asset in any Medium to long term Investor’s Portfolio. We will watch these forays with interest.

RESULTS TABLE

HDFC	30-Sep-11	30-Jun-11	31-Mar-11	31-Dec-10	30-Sep-10
Net Sales	407705	380067	364056	314895	290655
Employees Cost	5258	5276	3837	4505	4696
Depreciation	483	446	523	555	441
Other Expenditure	8352	7392	5735	6472	6776
Total Expenditure	14093	13114	10095	11532	11913
Profit from Operations	393612	366953	353961	303363	278742
Other Income	9209	2093	14430	17209	6367
Interest	269051	251493	212996	199284	171755
Profit  before tax	133770	117553	155395	121288	113354
Tax expense	36700	33100	41200	32200	32600
Net Profit	97070	84453	114195	89088	80754
Face Value (In Rs	2	2	2	2	2
Paid Up Equity	-	29399	29337	-	-
Basic EPS	6.6	5.75	7.76	6.09	5.53
Diluted EPS	6.49	5.65	7.6	5.91	5.45
Public holding (%)	0	100	0	0	0

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