HDFC Ltd Q3 net up 12.75% yoy at Rs5,837cr on lower credit costs at 0.27% and NIMs at 3.6%

3 Feb 2022 , 09:58 AM

HDFC Ltd reported -20.28% yoy fall in total revenues for the Dec-21 quarter on consolidated basis at Rs31,298cr on a consolidated basis. On a sequential basis, the revenues were lower by -18.9%.

The top line took a big hit on the insurance business as the gains on investments in the life insurance business dipped from a net gain of Rs10,044cr to a net loss of Rs-306cr in the current quarter.

Otherwise, the income from the lending business and the life insurance premiums were higher on a yoy basis. The NII for the first nine months of the fiscal was up 14% at Rs12,519cr for HDFC as a group.

For the Dec-21 quarter, the pre-tax profits were up on a yoy basis by 4.55% at Rs7,121cr. During the quarter, the net interest margins or NIMs for the first nine months stood at 3.6% while the credit costs were sharply lower at 0.27%.

The cost to income ratio for the first nine months of the fiscal stood flat at 8.1%.  PBT margins improved from 17.35% in Dec-20 quarter to 22.75% in the Dec-21 quarter. Operating margins were sharply higher on a sequential basis too.

Net Profit after tax (PAT) for the Dec-21 quarter was up 12.75% yoy at Rs5,837cr on the back of the robust operating performance getting transmitted to the bottom line. The collection efficiency of HDFC stood at 98.9%, which is fairly impressive.

While the gross NPLs for the individual loans business stood at 1.44%, the gross NPLs of the non-individual business was much higher at 5.04% and this segment is predominantly loans given to builders and developers.

PAT margins improved from 13.19% in the Dec-20 quarter to 18.67% in the Dec-21 quarter. The PAT margins were also sharply higher on a sequential basis.

Financial highlights for Dec-21 compared yoy and sequentially

	HDFC Ltd
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 31,298	₹ 39,259	-20.28%	₹ 38,591	-18.90%
PBT (Rs cr)	₹ 7,121	₹ 6,811	4.55%	₹ 6,779	5.03%
Net Profit (Rs cr)	₹ 5,837	₹ 5,177	12.75%	₹ 5,258	11.01%
Diluted EPS (Rs)	₹ 31.79	₹ 28.74		₹ 28.80
PBT Margin	22.75%	17.35%		17.57%
Net Margins	18.65%	13.19%		13.63%