HDFC Q3FY22 Preview: NII seen at Rs 42.8 billion, PAT at Rs 33 billion

2 Feb 2022 , 08:59 AM

Result date: 2^nd February, 2022
Recommendation: Buy
Target price: Rs. 3,210

HDFC is set to report double digit YoY growth in PAT during the quarter. NII growth is pegged at 6.9% on a YoY basis. Individual loan growth is estimated at 16% even as non-individual loans are beginning to gain momentum. Lack of dividend income will affect HDFC’s other operating income in the quarter. Lower ESOP charges could lead to moderation in operating expenses.
HDFC is a key beneficiary from lowering borrowing costs and consolidation in housing finance sector.

Important management insights to watch out for:
·         Credit demand in key segments
·         Outlook on spreads, asset quality
 

Rs. Billion	December 2021 estimates	YoY change	QoQ change
NII (Ex-assignment income)	42.8	6.9%	4.2%
Net operating income	49.7	1.8%	(12.1%)
PPOP	45.4	4.5%	(11.5%)
PBT	40.7	8.4%	(13.1%)
PAT	33.0	12.6%	(13.1%)

Source: Company, IIFL Research