HDFC Ltd
The market seems to have overreacted to the Q4FY17 numbers of HDFC. YoY, its net profit has shown a drop of 22% at Rs.2044 crore while it rose 20% QoQ. YoY, the fall was mainly because of higher base effect – in Q4FY17, the institution had clocked in a one-time gain of Rs.1513 crore on sale of stake in HDFC Standard Life Insurance Company to Standard Life Mauritius Holdings. So if we adjust for this one-time gain, it actually reported a 14% increase in net profit.
Other parameters are also good – NII was up 10% (YoY) and up 4% (QoQ) at Rs.8453 crore with NIMs coming in at 4.1%, almost same as in previous Q4.
In terms of asset quality, Gross NPA fell from 0.81% to 0.79% (QoQ). Provisions during the quarter increased 26.5% (QoQ) to Rs 148 crore but declined sharply by 73% (YoY). The housing finance firm sold loans worth Rs 5,625 crore in Q4 to banks including to HDFC Bank.
For full fiscal 2016-17, the standalone net profit or profit after tax was at Rs 7,442.64 crore, up from Rs 7,093.10 crore a year earlier. Total income was at Rs 33,159.60 crore, up from Rs 30,956.57 crore, according to the balance sheet of the company.
The board of directors of HDFC at its meeting held on Thursday also recommended a final dividend of Rs 15/equity share for 2016-17. HDFC said it will pay the dividend on July 27th.