HDFC Ltd Q4 Results Update

On 2nd May 2022, HDFC Ltd announced its quarterly results for the last quarter of FY2022.

Key Highlights:

Q4FY2022:

- The profit before tax for the Q4FY22, stood at ₹ 4,622 crores compared to ₹ 3,924 crores in the corresponding quarter of the previous year (Q4FY21), representing a growth of 18%.

- The profit after tax stood at ₹ 3,700 crores compared to ₹ 3,180 crores in the corresponding quarter of the previous quarter, with a growth of 16%.  

FY2022:

- The profit before tax for FY2022 stood at ₹ 17,246 crores compared to ₹ 14,815 crores in the previous year, representing a growth of 16%. 

- The profit after tax for FY2022 stood at ₹ 13,742 crores compared to ₹ 12,027 crores in FY2021. 

LENDING OPERATIONS:

- In FY2022, individual approvals and disbursements grew by 38% and 37% respectively compared to the previous year.

- In the month of March 2022, the Corporation recorded its highest monthly individual disbursements ever. This is despite the fact that the previous year entailed concessional stamp duty benefits in certain states which were not there in the current year

- 91% of new loan applications were received through digital channels. 

HOME LOANS:

- In FY2022, 29% of home loans approved in volume terms and 13% in value terms have been to customers from the Economically Weaker Section (EWS) and Low Income Group (LIG).

- The average home loan to the EWS and LIG segments stood at ₹ 11.2 lac and ₹ 19.7 lac respectively.

- The Corporation continued to have the largest number of home loan customers of over 3.14 lac who have availed benefits under the Credit Linked Subsidy Scheme (CLSS). As of March 31, 2022, cumulative loans disbursed by the Corporation under CLSS stood at ₹ 52,144 crore and the cumulative subsidy amount stood at ₹ 7,228 crore

OVERALL LENDING OPERATIONS:

- In FY 2022, the average size of individual loans stood at ₹ 33 lac. For Q4FY22, the average loan size was ₹ 34.7 lac. 

- For FY2022, the assets under management (AUM) stood at ₹ 6,53,902 crore as against ₹ 5,69,894 crore in the previous year. 

- Individual loans comprise 79% of the AUM. 

- On an AUM basis, the growth in the individual loan book was 17% and the growth in the total AUM was 15%.

- For Q4FY22, HDFC Ltd assigned individual loans amounting to ₹ 8,367 crores. Individual loans sold in the preceding 12 months amounted to ₹ 28,455 crores (PY: ₹ 18,980 crores). 

- For  FY2022, the outstanding amount in respect of individual loans sold was ₹ 83,880 crore. HDFC continues to service these loans. 

NET INTEREST INCOME AND NET INTEREST MARGIN:

- The net interest income (NII) for FY2022 stood at ₹ 17,119 crores compared to ₹ 14,970 crores in FY2021, representing a growth of 14%.

- The NII for Q4FY22 stood at ₹ 4,601 crores compared to ₹ 4,027 crores in the previous year, representing a growth of 14%.

- The reported Net Interest Margin (NIM) was 3.5%. 

CONSOLIDATED FINANCIAL RESULTS:

For FY2022, the consolidated profit after tax attributable to the Corporation stood at ₹ 22,595 crore as compared to ₹ 18,740 crores in FY2021, representing a growth of 21%. 

OTHER HIGHLIGHTS:

- The collection efficiency for individual loans on a cumulative basis stood at over 99% during the quarter ended March 31, 2022. 

- For FY2022, the gross individual non-performing loans (NPLs) stood at 0.99% of the individual portfolio, while the gross non-performing non-individual loans stood at 4.76% of the non-individual portfolio. The gross NPLs for FY2022 stood at ₹ 10,741 crore. 

- For FY2022, HDFC Ltd carried a total provision of ₹ 13,506 crores. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 2.38%.  

- The spread on loans over the cost of borrowings for FY2022 was 2.29%. The spread on the individual loan book was 1.93% and on the non-individual book was 3.40%. 

The Board recommended a dividend of ₹ 30 per equity share of the face value of ₹ 2 each compared to ₹ 23 per equity in the previous year. The dividend payout ratio is 40%.

On Wednesday, HDFC Ltd's share price declined by 0.21%.