LIC Hsg Fin

The company posted a set of good numbers for Q4FY14. Its net profit came in at rs.370 crore, up 17% on a 19% rise in total revenue at Rs.2478 crore. Asset quality was improved QoQ, with Gross NPA coming in at 0.67%, a very good improvement from 0.81% in Q3FY14 though YoY, it was up from 0.61%. Net NPA was at 0.39%, much lower than 0.51% in Q3 and tad higher than YoY of 0.36%. The insight here is that sequentially, its asset quality has improved very well.

The company has done well on the margins front too, wherein NIM for Q4 came in at 2.4% v/s 2.16% (QoQ) and 2.22% (YoY). What really worked well for the company is the go-getter attitude for property loans – at end of FY14 loan against property was at 4% of the portfolio v/s 3.4% at end of FY13.

It ended FY14 on a much better note – consolidated net revenue came in at Rs.9074 crore, up 22% and net profit was at Rs.1318 crore, up 26%. Its cash balance at end of FY14 has shot up sharply from Rs.1523 crore to double at Rs.3074 crore. The company expects this fiscal to be much better, with pick-up expected in individual loan growth. Interest rates are not expected to come down in a hurry and neither are realty prices tanking; thus till this balance tilts in favour of the company and individual, loan against property will remain an aggressive business.