HDFC Q1 profit zooms 23%, sees growth | india | Hindustan Times
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HDFC Q1 profit zooms 23%, sees growth

india Updated: Jul 14, 2010 23:46 IST
HT Correspondent

HDFC, one of the leading home-loan providers of the country, announced on Wednesday that its profits rose by 23 per cent to Rs 694.6 crore in the quarter-ended June over the same quarter in the previous year, even as its income growth remained flat.

Loan Ranger

23% Growth in HDFC's net profit for Apr-June quarter, year-on-year

0.2% Rise in the company's net sales for the quarter, Y-o-Y

116,111 In Rs crore, HDFC's total assets, as on July 14, 2010

HDFC also witnessed a drop in its interest expenditure over the corresponding quarter last year, and a growth in demand for loans during the quarter.

The lender said its individual approvals and disbursements grew by 56 per cent and 62 per cent respectively as compared to the corresponding quarter last year.

While a low base has helped in the high growth rate of disbursements, the company says that demand has risen.

"It has partly to do with a low base but also significantly to do with the fact that the growth itself has been good," said Keki Mistry, vice chairman and managing director, HDFC. "We expect an overall annual growth of around 25 per cent on the disbursement front going forward."

While the growth has been strong over the last year, HDFC saw a dip in its revenues and profits by 3.3 per cent and 25 per cent respectively over the quarter ended March 2010.

During the quarter, HDFC also witnessed an increase in its spread on loans over cost of borrowings at 2.34 per cent for the quarter ended June 2010 as compared to 2.31 per cent for the year ended March 31, 2010.

Even as the lender’s total asset has grown from Rs 97,479 crore as on June 2009 to Rs 116,111 crore as on June 30, 2010

The company has been consistently improving on its non-performing loans and its gross NPA’s stand at 0.89 per cent while its net non performing loans stand at 0.21 per cent.

Speaking at the company’s annual general meeting, HDFC’s chairman, Deepak Parekh, said residential real estate prices in the country are hitting the peak levels observed pre-slowdown.

"There is an improved economic sentiment and developers have started charging premiums as land prices have also suddenly started going up... prices are getting to the peak levels," Parekh said, addressing shareholders. Commercial real estate prices and rents will remain subdued for sometime, he said.