HDFC Q1 profit falls 5% YoY to Rs 3,051.5 crore

The profit numbers beat market estimates as a CNBC-TV18 poll had estimated the number to come at Rs 2,698.8 crore.

Non-banking financial heavyweight HDFC, on July 30, announced a 4.7 percent year-on-year (YoY) fall in June quarter standalone net profit at Rs 3,051.5 crore.

In the June quarter of FY20, the company had reported a net profit of Rs 3,203.10 crore.

The profit numbers beat market estimates as a CNBC-TV18 poll had estimated the number to come at Rs 2,698.8 crore.

The company's revenue came at Rs 13,017.7 crore in Q1FY21 against Rs 12,990.3 crore reported in the corresponding quarter last year.

Net interest income (NII) for the June quarter came at Rs 3,392 crore, up 10.17 percent YoY against Rs 3,079 crore in Q1FY20. CNBC-TV18 poll expected NII to come at Rs 3,419.5 crore.

The reported net interest margin (NIM) stood at 3.1 percent against 3.3 percent in the corresponding quarter last year. Adjusting the NIM for the impact of negative carry on account of significantly higher liquidity levels, the NIM stood at 3.3 percent, the same as the previous year, the company said.

The company made a COVID-19 provision at Rs 1,199 crore.

The company said individual loans under moratorium 2 stood at 16.6 percent against 22.6 percent in moratorium 1. Total loans under moratorium 2 stood at 22.4 percent against 27 percent In moratorium 1.

The company said it has a comfortable liquidity position and saw a strong 26 percent YoY growth in deposits.

As of June 30, HDFC's assets under management (AUM) stood at Rs 5,31,555 crore as against 4,75,933 crore in the previous year. Individual loans comprise 74 percent of the total AUM.

On an AUM basis, the growth in the individual loan book was 11 percent while the non-individual loan growth was at 15 percent. The growth in the total loan book was 12 percent, said HDFC.

Capital adequacy stood at 17.3 percent against the regulatory requirement of 14 percent.

Gross non-performing loans as of June 30 stood at Rs 8,631 crore (equivalent to 1.87 percent of the loan portfolio) against Rs 8,908 crore (1.99 percent of loans) as of March 31.

The company said the current and previous year's numbers are not directly comparable due to unprecedented disruption like COVID-19.

The company received a dividend income of Rs 298 crore in Q1FY21. Profit on sale of investments during the quarter stood at Rs 241 crore.

"After adjusting dividend, profit on the sale of investments, net gains on de-recognition of assigned loans, provisioning and the impact of negative carry on account of higher liquidity, the adjusted profit before tax for the quarter stood at Rs 3,265 crore compared to 2,684 crore in the previous year, reflecting a growth of 22 percent," HDFC said.

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