LIC Housing Finance's Q4FY16 standalone net profit rises18% yoy to Rs.448 crore : In line with estimates

LIC Housing Finance Ltd, home loan NBFC, reported standalone net profit of Rs. 448.01 crore for the quarter ended March 31, 2016, registering growth of 18.46% yoy and 6.95% qoq. It's Net Interest Income (NII) for the quarter stood at Rs. 862.13 crore, clocking growth of 26.39% yoy and 9.92% qoq.

For the year ended March 31, 2016, the company reported net profit of Rs. 1,660.78 crore, registering growth of 19.81% yoy. It's NII for the current period of Rs. 3,089.38 crore was up  30.96% yoy.

On consolidated basis, for the year ended the company reported net profit of Rs. 1,667.69 crore, rising by 19.49%. It reported total income from operations of Rs. 12,410.34 crore, recording growth of 16.04%. 



Rationale:

LIC Housing Finance Ltd Q4FY16 earnings were broadly in-line with estimates. Both the top-line and bottom-line came slightly below IIFL Estimates by 1.36% and 2.18%. Main reason for bad performance were tax expenses which stood at Rs. 246.25 crore growing 8.42% qoq and 24.93% yoy. Other expenses at Rs. 31.89 crore rose by 21% qoq and 15% yoy.  Also the provisions rose by 9.32% qoq and clocked nearly three-folds jump yoy.

Result Highlights: (Rs. in crore)

Standalone EPS for the quarter stood at Rs. 8.88.

Bloomberg estimated the company’s standalone net profit at Rs. 4,653.81 crore.

Corporate Action :

LIC Housing Finance' board of directors at its meeting held on April 18, 2016 have approved recommendation of dividend for financial year 2015-2016 @ 275% i.e. Rs. 5.50 per equity share of Rs. 2/-each. The dividend on equity shares, will be paid on or after August 20, 2016.

Stock Commentary:

LIC Housing Finance Ltd is currently trading at Rs. 483.55, up by 2.75 points or 0.57% from its previous closing of Rs. 480.8 on the BSE.

The scrip opened at Rs. 482.6 and has touched a high and low of Rs. 490 and Rs. 479.7 respectively. So far 3385445(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 24263.57 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 526 on 06-Aug-2015 and a 52 week low of Rs. 389 on 25-Feb-2016. Last one week high and low of the scrip stood at Rs. 487.4 and Rs. 461.9 respectively.

The promoters holding in the company stood at 40.31 % while Institutions and Non-Institutions held 33.66 % and 26.03 % respectively.

The stock is currently trading below its 200 DMA.