Earnings Review
LIC Housing PAT rises nearly 12% on fall in expenses, NPA
This story was originally published at 21:28 IST on 28 October 2024
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--LIC Housing Jul-Sept net profit INR 13.29 bln
--Analysts saw LIC Housing Jul-Sept net profit INR 12.22 bln
--LIC Housing Jul-Sept net profit INR 13.29 bln vs INR 11.88 bln year ago
--LIC Housing Jul-Sept revenue INR 69.26 bln vs INR 67.53 bln year ago
--LIC Housing gross NPA ratio 3.05% as on Sept 30
--LIC Housing Apr-Sept net profit INR 26.29 bln vs INR 25.12 bln year ago
--LIC Housing net NPA ratio 1.57% as on Sept 30
--LIC Housing Apr-Sept revenue INR 137.09 bln vs INR 134.99 bln year ago
--LIC Housing provision coverage ratio 49.42% as on Sept 30
By Sachi Pandey and Vaishali Tyagi
MUMBAI – LIC Housing Finance Ltd.'s net profit for Jul-Sept rose 11.9% on year to INR 13.29 billion, primarily because of fall in total expenses and lower non-performing assets. Sequentially, the net profit rose by 2.21%. The net profit surpassed market estimates of INR 12.2 billion.
The company's total expenses for the quarter were INR 52.67 billion, down 0.21% from the previous year but up 2.18% sequentially. Impairment cost on financial instruments fell sharply by 81.6% to INR 773 million from INR 4.19 billion a year ago. Sequentially, the drop was 46%. Fees and commission expenses were down 21.6% on year at INR 299 million from INR 381.1 million, contributing to the overall reduction in expenses.
The housing finance company's net non-performing assets ratio as on Sept. 30 was 1.57%, down from 2.59% a year ago. Similarly, gross non-performing assets ratio improved to 3.05% from 4.33% in the previous year.
Revenue from operations for the quarter rose 2.6% to INR 69.26 billion from INR 67.53 billion a year ago. Sequentially, the revenue rose 2.10%. Total income grew slightly by 2.56% on year to INR 69.32 billion from INR 67.59 billion, despite a 78.5% year-on-year drop in net gains from de-recognized financial instruments under amortised cost. Income from fees and commissions declined sharply by 47.28% to INR 77 million. The company's provision coverage ratio as on Sept. 30 was 49.42%.
The company's net profit for the first half of the financial year rose by 4.7% to INR 26.29 billion, from INR 25.12 billion a year prior.
The company's net interest income for Jul-Sept fell by 6% to INR 19.74 billion, from INR 21.07 billion in the corresponding period a year ago. According to an average of estimates by six brokerages, the company was expected to report a 2.13% on-year fall in net interest income to INR 20.62 billion.
Net interest margin for the quarter was 2.71% against 3.04% a year ago and 2.76% a quarter ago. The company's total loan portfolio grew only 6% on year to INR 2.95 trillion as of Sept. 30 against INR 2.78 trillion a year ago. Out of which individual home loans grew by 7% on year to INR 2.51 trillion.
During Jul-Sept, total disbursements by the company grew 12% on year to INR 164.76 billion. Out of this, the disbursements in individual home loan segment were at INR 130.51 billion as of Sept. 30, whereas the project loan jumped up 223% to INR 13.97 billion from INR 4.3 billion a year ago. End
Edited by Ashish Shirke
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