Q4FY23 Preview: HDFC: NII seen at Rs 5,011 crore, PAT at Rs 3,774 crore

3 May 2023 , 07:27 AM

Result date: 4^th May, 2023

Recommendation: Buy

Target price: Rs 3,085

(Source: IIFL Research)

HDFC is likely to witness double digit loan growth over the year-ago quarter, largely due to continued traction in the individual segment.

The company’s Net Interest Margin could remain stable. It could clock in dividend income of ~Rs 480 crore even as there will not be any profit on sale of investment.

HDFC’s Profit After Tax or PAT could grow ~2% as compared to the year-ago quarter.

Important management insights to watch out for:

• Update on merger with HDFC Bank
• Post-merger growth strategy 

Rs Crore	March 2023 estimates	YoY change	QoQ change
Net Interest Income (NII)	5,011	8.3%	3.2%
Operating Loss	5,033	3.3%	4.4%
Profit After Tax	3,774	1.9%	2.3%

Source: Brokerage estimates