LIC HOUSING FINANCE - FIRST QUARTER RESULTS (Q1 FY 13) - NET SALES UP 26.49% YoY; NPT DOWN 11 %YoY - FUTURE OUTLOOK FOR FY 13 PROMISING

LIC HOUSING FINANCE

RESULTS FOR FIRST QUARTER OF FY 13

LIC HSG FIN has declared its results for the first quarter ending June, 2012.

Net Sales for Q1 FY 13 stand at Rs.1717.86 Cr; up by 5.52% from the previous Qtr (Q4 FY 12) of Rs.1628.02 Cr’ and up by 26.49% from Q1 FY 12 of Rs.1358.07 Cr; and also up proportionately (Q1 FY 13 v 4 vs FY 12 total) by 14.86% at Rs.5982.69 Cr.

Total Expenditure for Q1 FY 13 stand at Rs.95.61 Cr; up by 15.21% from the previous Qtr (Q4 FY 12) of Rs.82.98 Cr’ and up by 26.38% from Q1 FY 12 of Rs.75.65 Cr; and down proportionately (Q1 FY 13 v 4 vs FY 12 total) by    -8.59% at Rs.418.38 Cr.

Profit from Operations   for Q1 FY 13 stand at Rs.1650.85 Cr; up by 4.53% from the previous Qtr (Q4 FY 12) of Rs.1579.33 Cr’ and up by      23.39% from Q1 FY 12 of Rs.1337.89 Cr; and  also up proportionately (Q1 FY 13 v 4 vs FY 12 total) by 15.37% at Rs.5723.45 Cr.

Other Income     for Q1 FY 13 stand at Rs.20.85 Cr; down by -21.96% from the previous Qtr (Q4 FY 12) of Rs.26.71 Cr’ and up by 348.91% from Q1 FY 12 of Rs.4.64 Cr; and   down proportionately (Q1 FY 13 v 4 vs FY 12 total) by -18.84% at Rs.102.75 Cr.

Profit before Interest   for Q1 FY 13 stand at Rs.1671.7 Cr; up by 4.09% from the previous Qtr (Q4 FY 12) of Rs.1606.04 Cr’ and up by      24.52% from Q1 FY 12 of Rs.1342.54 Cr; and  up proportionately (Q1 FY 13 v 4 vs FY 12 total) by    14.77% at Rs.5826.2 Cr.

Interest     for Q1 FY 13 stand at Rs.1367.37.42 Cr; up by    8.76% from the previous Qtr (Q4 FY 12) of Rs.1257.25 Cr’ and up by 37.13% from Q1 FY 12 of Rs.997.11 Cr; and  up proportionately (Q1 FY 13 v 4 vs FY 12 total) by    19.13% at Rs.4591.06 Cr. Interest Expenditure, as we see, has gone up much more than proportionately compared to Profit Before Interest. This Higher Interest has adverse Impact on Profitability further – as we can see below :

Profit after Interest  for Q1 FY 13 stand at Rs.304.32Cr; down by -12.75% from the previous Qtr (Q4 FY 12) of Rs.348.79 Cr’ and down by -11.9% from Q1 FY 12 of Rs.         345.42 Cr; and  down proportionately (Q1 FY 13 v 4 vs FY 12 total) by   -1.45% at Rs.1235.13 Cr.

Profit before tax for Q1 FY 13 stand at Rs.304.32 Cr; down by        -12.75% from the previous Qtr (Q4 FY 12) of Rs.348.79 Cr’ and down by -11.9% from Q1 FY 12 of Rs.345.42 Cr; and  down proportionately (Q1 FY 13 v 4 vs FY 12 total) by -1.45% at Rs.1235.13 Cr.

Tax Expense for Q1 FY 13 stand at Rs.76.57Cr; down by -19.56% from the previous Qtr (Q4 FY 12) of Rs.95.19 Cr’ and down by -13.88% from Q1 FY 12 of Rs.88.92 Cr; and  down proportionately (Q1 FY 13 v 4 vs FY 12 total) by -3.92% at Rs.318.8 Cr.

Net Profit after tax for Q1 FY 13 stand at Rs.227.75 Cr; down by    -10.2% from the previous Qtr (Q4 FY 12) of Rs.253.60 Cr’ and down by -11.21% from Q1 FY 12 of Rs.256.50 Cr; and  down proportionately (Q1 FY 13 v 4 vs FY 12 total) by   -0.96% at Rs.919.85 Cr. Thus, Profits have fallen on account of Higher Interest Expenditure in current quarter. Further improvement in Profitability is likely to depend on the INTEREST RATE SCENARIO, and RBI’s decision on Interest rates in Future.

Basic EPS stands at Rs.4.51 in Q1 FY13; Compared to Rs.5.28 in Q4 FY12; Rs.5.4 in Q1 FY 12; and Rs.19.32 in FY 12 (Total). At the current Rate of Profitability, the annualized EPS will be above Rs.18. However, as we can see from what the company says (Below) : the company has a positive outlook for the rest of the year and therefore can improve its performance in the next 3 quarters.

At the current Market Price of Rs.248, the PE Ratio works out to 13.78.The company has a good future outlook and is therefore a good buy at current levels for medium / long term investors.

Face Value of the share stands at Rs.2

Paid-up Equity    for Q1 FY 13 stand at Rs.100.93 Cr.

Reserves  as at end of FY 12 stand at Rs.   5609.21 Cr.

Public Shareholding in the company stands at 59.69%.

What company says :

Performance Highlights – Q1 FY 2013   

( Rs. crores)         

	Quarter  Ended  June 2012	Quarter  Ended  June 2011	Variation
Individual Loan Sanctions	4900	3682	33%
Individual Loan Disbursements	4470	3468	29%
Developer Loan Sanctions	408	5	8216%
Developer Loan Disbursements	321	77	315%
Interest Income on Housing Loans	1718	1358	27%
Total Income	1767	1418	25%
Profit after Tax	227.75	256.50	(11%)
Outstanding Loan Portfolio	65644	52876	24%
Gross NPA	0.71%	0.84%
Net NPA	0.38%	0.39%

                                                                                                             

                                                                                                                                                               

The Company has recorded a healthy growth in business during the first quarter ended June 2012.

In Individual Loan category, the Company sanctioned Rs 4900 cr , a growth of 33 % over the corresponding period of previous year, whereas the disbursements in that category was Rs 4470 cr, a growth of  29% over the corresponding period of previous year. In Developer Loan category, the Company sanctioned Rs 408 cr, as against Rs 5 cr in the corresponding period of previous year, whereas the disbursements in that category was Rs 321 cr, against Rs 77 cr for the corresponding period of previous year.

The Company's total Income including other income for the first quarter ended June 2012 was Rs.1767 crores as against Rs.1418 crores during the same period last year, a growth of 25%.

Net profit for the Q1 was Rs.227.75 crores as compared to Rs.256.50 crores in the corresponding period last year. The drop in Net profit is primarily attributable to the decline in the Developer Loan Portfolio as compared to previous year and a lower than expected Developer Loan disbursals on account of overall economic scenario.

Net Interest Margins for the Q1 stood at 2.18% against 2.44% for the quarter ended 31 March 2012, mainly on account of lower income from Developer Loans.

The Outstanding Mortgage Portfolio as on June 30, 2012 was Rs.65644 crores as against Rs.52876 crores on June 30, 2011, thus registering a growth of 24%. The Individual Loan portfolio stood at Rs 62602 cr as against Rs 48851 cr, a growth of 28%. The Developer Loan portfolio stood at Rs 3042 cr as on June 30, 2012 as against Rs 4025 cr as on June 30, 2011, a decline of 24%.

The Gross NPAs of the Company stood at 0.71% on June 30, 2012 as against 0.84% as on June 30, 2011. Net NPAs were 0.38% as against 0.39% for the corresponding dates.

LIC Housing Finance, Director & Chief Executive, Mr. V. K. Sharma, said “Business environment has been very challenging; however, we have been able to grow our new disbursals despite the odds and are confident of maintaining a healthy growth rate for the rest of the year. Margins have been under strain owing to the high interest rate regime and high borrowing costs that has prevailed during the quarter and a lower Developer Loan portfolio. In Q1, Developer Loan disbursals have started to improve, which is likely to help increase the margins going forward. The Asset quality of the Company continues to be good even in this environment.”

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