LIC Housing Q1FY17 standalone net profit grows 7% yoy to Rs.407.84 crore: Estimates Mixed

India Infoline News Service | Mumbai | July 15, 2016 15:08 IST

Its net interest income came in at Rs 857.88 crore declining 0.49% qoq but growing 24.81% yoy

LIC Housing Finance,a home loan NBFC reported standalone net profit of Rs 407.84 crore for the quarter ended June 30th 2016, declining 8.97% qoq but rising 6.73% yoy.  Its net interest income came in at Rs 857.88 crore declining 0.49% qoq but growing 24.81% yoy. The company’s provisions at Rs. 116.45 crore grew by three folds qoq and yoy  respectively.

LIC Housing Finance Q1: Mixed bag!

LIC Housing Finance earnings were a mixed bag. The company disappointed on the Net profit, which came in way lower at Rs. 407.84 crore against IIFL expectation of Rs. 465.3 crore. NII, which declined 0.5% sequentially but rose 24.81% yoy was inline with IIFL estimates at 838.2 crore beating expectations by 2.35%. The company’s results disappointed on the Net profit front mainly on account of 74% jump in employee cost to Rs. 68.26 crore qoq and more than three-folds jump in provision from Rs. 37.63 crore to Rs. 116.46 crore. During the quarter, the company made a provision of Rs. 92 crore on account of aging of old project loan NPAs which had already been classified as NPAs as per norms. Encouragingly, Net interest margins for the Q1 FY17 stood at 2.61% as against 2.41% for Q1 FY16. Also, total Gross NPAs for the company including NPAs on project loans was 0.59% as on June 30, 2016 as against 0.60% in the corresponding quarter of the previous year.

During the quarter ended June 30, 2016, the Company disbursed Rs. 7064 cr in the Individual Loan segment, a growth of 19% over the corresponding period in the previous year. Disbursement in the project loan segment was Rs. 478 cr against Rs. 181 cr for the corresponding period in the previous year.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 857.88 838.2 2.35
Standalone Net Profit 407.84 465.3 [12.35]

Standalone EPS for the quarter stood at Rs. 8.08.

Management Comments:

Commenting on the performance, Ms. Sunita Sharma, MD & CEO, LIC Housing Finance said, “LIC Housing Finance has started the financial year on a strong note. We have registered a healthy disbursement growth rate, robust NII growth delivering higher Net Interest Margins and maintained a very good asset quality. We are confident of building on this and continue to remain positive on our future performance.”

Stock Commentary:

LIC Housing Finance Ltd is currently trading at Rs. 526.65, up by Rs. 20.1 or 3.97% from its previous closing of Rs. 506.55 on the BSE.

The scrip opened at Rs. 511.5 and has touched a high and low of Rs. 529.7 and Rs. 503.25 respectively. So far 9084066(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 25563.05 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 533 on 12-Jul-2016 and a 52 week low of Rs. 389 on 25-Feb-2016. Last one week high and low of the scrip stood at Rs. 533 and Rs. 497 respectively.

The promoters holding in the company stood at 40.31 % while Institutions and Non-Institutions held 37.57 % and 22.12 % respectively.

The stock is currently trading above its 50 DMA.

***Note: This is a NSE Chart



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