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HDFC Q2 net profit surges 60% to Rs 3,961 crore, revenue up 10%

BusinessToday.In     November 4, 2019

Housing Development Finance Corporation (HDFC) has reported 60.57 per cent year-on-year growth in its standalone net profit at Rs 3,961.53 crore for the second quarter ended September 30, 2019, aided by a tax gain of Rs 1,627 crore on stake sale in Gruh Finance during the quarter under review.

"The housing finance company had posted a net profit of Rs 2,467.08 crore in the same quarter previous fiscal," HDFC said in a filing to the Bombay Stock Exchange.

HDFC has sold nearly 10 per cent stake in its subsidiary Gruh Finance Ltd (Gruh), under the RBI directives to bring down the holding in the subsidiary firm for the proposed merger into Bandhan Bank. During the quarter, The National Company Law Tribunal, Ahmedabad and Kolkata benches approved the scheme of amalgamation of GRUH with Bandhan Bank, it said in the exchange filing.

The total revenue from operations increased by 10.35 per cent to Rs 10,478.33 crore in Q2FY20 from Rs 9,494.70 crore in Q2FY19, the mortgage lender said in a regulatory filing.

Net interest income (NII) for September quarter of this fiscal jumped 16.5 per cent to Rs 3,021 crore compared to Rs 2,594 crore in the same quarter last year. Net interest margin stood at at 3.3 per cent.

While debt service coverage ratio stood at 0.58, interest service coverage ratio was at 1.55. The loan growth for the quarter stood at 12 per cent. As on September 30, 2019, HDFC's net worth was Rs 81,705.54 crore.

Reacting to Q2 earnings, shares of HDFC closed 2.33 per cent higher at Rs 2,178.10 apiece on the Bombay Stock Exchange on Monday.

Edited by Chitranjan Kumar

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