Shares of Housing Development Finance Corporation (HDFC) rose over 3% on Tuesday's trade after the mortgage lender reported a nearly four-fold jump in its net profit to Rs 8,372.49 crore during Q3 FY20, driven by a value gain of Rs 9,019.81 crore from the merger of Gruh Finance, an associate, with Bandhan Bank.
Following the earnings update, HDFC share price soared to an intraday high of Rs 2,470.85, rising 3.13% against the previous close of Rs 2,395.80. Volume-wise, 0.40 lakh and 27 lakh shares were trading on BSE and NSE, respectively. On Monday, HDFC share price closed at Rs 2,395.80, down 2.25%, on the Bombay Stock Exchange, prior to the Q3 result update.
HDFC stock has fallen 0.55% in a week, although gained 0.27% in a month and over 25% in a year. HDFC stock price is trading higher than its 5, 20, 50, 100 and 200-day moving averages.
The mortgage lender reported a 24.26% rise (YoY) in consolidated net profit to Rs 4,196 crore in the quarter ended December 31, 2019, as against Rs 3,377 crore, recorded in a year-ago period.
"On de-recognition of investment in Gruh, the corporation has recognised a fair value gain of Rs 9,019.81 crore," HDFC said in a filing to the Bombay Stock Exchange.
HDFC's total income rose 17.93% (YoY) to Rs 28,966 crore in the October-December quarter of the current fiscal as compared to Rs 24,587 crore in the same period last financial year. The total revenue from operations surged by 92% to Rs 20,285.47 crore in Q3FY20 from Rs 10,575 crore in Q3FY19, the mortgage lender said in a regulatory filing.
During the quarter under review, net interest income (NII) of the housing finance company rose 13.56 per cent to Rs 2,957.83 crore as against Rs 2,604.57 crore in the same quarter last year. Net interest margin stood at 3.3%.
Company's PAT Margin grew 14.47% (YoY) during the quarter ended December 31, 2019, from 13.73% in the corresponding quarter in the previous year. HDFC 's board has approved raising up to Rs 45,000 crore through NCDs.