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LIC Housing Finance reported 8% growth in the net profit to Rs 610.68 crore in the quarter ended June 2019. Net interest income (NII) of the company increased 17% to Rs 1181.87 crore in Q1FY2020. Other income declined 11% to Rs 22.75 crore. The net total income increased 17% to Rs 1204.62 crore. Operating Expense was up by 22% to Rs 100.18 crore, while the operating profit to increase 16% to Rs 1104.44 crore. The provisions surged 57% to 253.33 crore and depreciation jumped 289% to Rs 10.22 crore, allowing the PBT to increase 7% to Rs 840.89 crore. An effective tax rate eased marginally to 27.4%, while the net profit increased 8% to Rs 610.68 crore in Q1FY2020.
Business updates
In the quarter ended June 2019, total disbursements increased 7% to Rs 10261 crore from Rs 9594 crore in Q1FY2019. Out of that, disbursements in the individual home loan segment was Rs 7871 crore against Rs 7260 crore, whereas total disbursements in project loans were Rs 829 crore as against Rs 889 crore in Q1FY2019.
The total loan portfolio stood at Rs 197768 crore as against Rs 169866 crore a growth of 16%. The Individual loan portfolio stood at Rs 184155 crore as against Rs 161467cr, showcasing a growth of 14%. Out of that home loan portfolio registered a growth of 12.4%. Developer loan portfolio stood at Rs 13614 crore end June 2019 as against Rs 8399 crore end June 2018.
Net Interest margins stood at 2.35% in Q1FY2020 as against 2.32% in Q1FY2019.
Under Indian Accounting Standards norms, asset classification and provisioning amount changes from the rule- based model to the Expected Credit Loss (ECL) model of providing for expected future credit losses based on Exposure at Default (EAD). The loan loss provisions are computed based on the Company's loss rates experienced in the past and future expected credit loss after accounting in various parameters.
As per the same methodology, the EAD-Stage 3 stood at 1.98% as against 1.54% end March 2019. Consequently, the provisions for ECL stood at Rs 253.33 crore for the quarter as against Rs 160.96 crore for the corresponding quarter in the previous year.
The book value of the company stood at Rs 334.3 per share and adjusted book value (net of net stage 3 assets) stood at Rs 279.4 per share end June 2019.
Performance for FY19
LIC Housing Finance reported 22% growth in net interest income to Rs 4364.57 crore for FY2019. Other income was lower by 5% to Rs 105.6 crore, thus leading the total income to Rs 4470.17 crore, up by 21% YoY. Operating Expense moved up by 17% to Rs 728.54 crore. The growth in OP thus was at 15% to Rs 3741.63 crore. After providing deprecation of Rs 11.73 crore and provisions of Rs 350.35 crore, PBT was up by 22% to Rs 3379.55 crore. After providing total tax of Rs 948.58 crore, PAT for the 12 months ended Mar 19 stood at Rs 2430.97 crore, up by 21% YoY.
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