What should investors expect from HDFC Q4 results?

NEW DELHI: HDFC Ltd, India's leading housing finance provider company is scheduled to report its results for the quarter ended March 31 later today.

Ahead of the results, the stock was trading in a range with a negative bias. HDFC was trading 0.30 per cent lower at Rs 884.50 at 11:20 a.m.

The mortgage lender is expected to report a 10.5 per cent YoY rise in its fourth quarter of financial year 2014 net interest income or the difference between interest earned and interest paid to Rs 2,344 crores as compared to Rs 2,121 crores reported in the year-ago period, according to ET NOW Poll.

However, a Mumbai-based brokerage firm, Angel Broking expects HDFC's NII to increase by 13.9 per cent YoY to Rs 2,164 crores. Non-interest income is expected to come de-grow by 9.7 per cent YoY to Rs 306 crores and PAT to rise by 12.4 per cent YoY to Rs 1748 crores.

The private sector lender is expected to report a 8.5 per cent YoY rise in its fourth quarter net profit to Rs 1,688 crores from Rs 1,555.20 crores reported in the year-ago period, impact by higher base last year, according to estimates.

Operating Income and operating profit are expected to grow by 10.4 per cent and 9.9 per cent respectively to Rs 2,470cr and Rs 2,335cr. Provisioning is expected to come in at Rs 36 crores, an increase of 45.9 per cent YoY, said the brokerage report.

Factors to watch:

Any recovery from large corporate a/c

Trend in margins, spreads, loan book mix and growth

Management outlook on growth, property prices, asset quality, spreads