HDFC Q4 results: Profit may fall, asset quality expected to be stable

NEW DELHI: Housing Development and Finance Corporation (HDFC) is expected to report a drop in net profit for the March quarter, when it announces its quarterly numbers on Monday. Asset quality is expected to remain stable.

Motilal Oswal Securities is expecting the private sector lender to report 18.69 per cent drop in net profit at Rs 2,113.80 crore for the quarter, compared with Rs 2,846.20 crore in the same quarter last year. The numbers in the year-ago quarter were aided by a one-time gain from the sale of subsidiaries.

“While YoY earnings look down due to base effect, Q4 should also prove to be a healthy quarter with 30 per cent PAT growth QoQ led by improved margins and stable gross NPAs,” Prabhudas Lilladher said in a note. The brokerage sees PAT at Rs 2,743 crore, down 3.6 per cent YoY. Net interest income (NII) is seen falling 7.4 per cent to Rs 2,974 crore.


Motilal Oswal Securities estimates a 9.7 per cent YoY in NII at Rs 2,900 crore from Rs 3,211.10 crore in the year-ago quarter.

“We estimate provisions at Rs 190 crore after factoring in one off provision of Rs 100 crore (30 per cent of profit on sale of investment) in 4QFY19 vs Rs 120 crore in 3QFY19,” Motilal Oswal said.

Edelweiss Securities, which expects the NBFC to report 7.7 per cent drop in core profit at Rs 2,627 crore, said that individual disbursement growth could be strong for the lender.

“We anticipate higher teens individual loan growth. That said there could be softness on non-individual growth. Spreads are likely to be stable to marginally improving. Asset quality is likely to be stable,” the brokerage said.