Q3FY23 Preview: HDFC: NII seen at Rs48,768 million, PAT at Rs37,040 million

31 Jan 2023 , 10:12 AM

Result date: 2^nd February, 2023

Recommendation: Buy

Target price: Rs 3,135

Source: IIFL Research

HDFC is likely to post healthy growth in Assets Under Management at 15% as compared to the year-ago quarter, driven by individual loans. The company could post 14% growth in Net Interest Income (NII) over the year-ago quarter. Net Interest Margin could improve slightly during the quarter.

Credit costs and overall asset quality is expected to remain stable. Operating profit could grow 12%.

Profit After Tax (PAT) growth is pegged at 14% on a year-on-year basis.

Important management insights to watch out for:

• Outlook on margins
• Credit demand for home loan 
• Asset quality trends in the non-individual segment

 

Rs. Million	December 2022 estimates	YoY change	QoQ change
NII	48,768	13.9%	5.1%
Net Income	51,683	14.8%	4.1%
Operating profit	46,498	12.4%	6.2%
Profit After Tax	37,040	13.6%	(16.8)%

Source: Brokerage reports