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Informist, Friday, Jan. 31, 2025

By Ashna Mariam George and Vaishali Tyagi

MUMBAI – LIC Housing Finance's net profit for the quarter ended December rose over 23% on year to INR 14.32 billion, beating the Street's estimate, on the back of an improvement in asset quality and a rise in total revenue from operations. According to the average of estimates from nine brokerage firms, the company's net profit for the December quarter was seen at INR 12.90 billion. Sequentially, the bottom line rose nearly 8%.

The home financier's asset quality improved in the reporting quarter, with gross non-performing assets falling to 2.74% as on Dec. 31, from 3.05% in the previous quarter. The company's net non-performing assets moderated to 1.46% as on Dec. 31, from 1.57% as on Sept. 30.

LIC Housing Finance's net gain on fair value changes jumped nearly 188% on year to INR 171.90 million. Sequentially, it rose over 88%. This rise aided the company's top line, with the total revenue from operations increasing nearly 4% on year in Oct-Dec, to INR 70.57 billion. On a sequential basis, the top line rose marginally by around 2%. 

The rise in the housing finance company's net profit was also supported by a slight fall in total expenses. The company's total expenses for the quarter were INR 52.64 billion, down 1.5% from a year ago and flat on a sequential basis. Out of these, fees and commission expenses declined over 7% on year to around INR 304.9 million, contributing to the overall reduction in expenses. The company's provision coverage ratio as on Dec. 31 was 47.56%.

For Oct-Dec, the company's net interest income fell 5% on year to INR 20 billion. According to an average of estimates by six brokerages, the company was expected to report a 4.1% on-year fall in net interest income to INR 20.11 billion.

Net interest margin for the quarter was 2.70%, against 3.00% a year ago. LIC Housing Finance reported modest growth in its loan portfolio, with a 6% year-over-year increase to INR 2.99 trillion as of Dec. 31. Individual home loans, which account for the majority of the portfolio, grew 7% to INR 2.55 trillion. The company's project loan portfolio also saw a 2% increase to INR 87.76 billion.

The company's net profit for the period nine months to December rose nearly 11% to INR 40.61 billion, from INR 36.75 billion a year ago. During the nine months ended Dec. 31, total disbursements by the company stood at INR 448.67 billion, against INR 40.71 billion in the year-ago period, up 10%.

The company's disbursements rose 2% on year to INR 154.75 billion in the reporting quarter. Notably, project loan disbursements surged 162% to INR 9.83 billion. This growth in loan disbursements and portfolio boosted the company's bottom line.

During the quarter, the housing finance wrote off loans worth INR 1.74 billion. The company also sold stressed exposure for a cash consideration of INR 2.50 billion during the quarter. On Friday, LIC Housing Finance's shares ended at INR 598.10 on the NSE, up 2.4%.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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