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LIC Housing Finance reported flat net profit of Rs 597.53 crore in the quarter ended December 2019 (Q3FY2020). Net interest income (NII) of the company increased 16% to Rs 1253.68 crore in Q3FY2020, driven by improvement in net interest margin (NIM) to 2.42% in Q3FY2020 from 2.38% in the previous quarter as well as 2.33% in the corresponding quarter last year. Other income moved up 10% to Rs 27.55 crore. The net total income increased 15% to Rs 1281.23 crore.
Operating Expenses dipped 47% to Rs 132.49 crore, allowing the operating profit to surge 34% to Rs 1148.74 crore. However, the provisions zoomed to Rs 390.68 crore crore in Q3FY2020 from provisions write-back of Rs 3.14 crore in Q3FY2019. Depreciation also jumped 328% to Rs 12.74 crore, leading to 13% decline in the PBT to Rs 745.32 crore. However, an effective tax rate dipped to 19.8% in Q3FY2020 from 30.6% in Q3FY2019, helping net profit to be marginally rise to Rs 597.53 crore in Q3FY2020.
Business updates
In the quarter ended December 2019, total disbursements increased 3% to Rs 13177 crore from Rs 12778 crore in Q3FY2019. Out of that, disbursements in the individual home loan segment increased 16% to Rs 10655 crore, whereas disbursements in project loans dipped 25% to Rs 931 crore and other retail loans by 33% to Rs 1591 crore in Q3FY2020.
The total loan portfolio rose at slower pace of 13% to Rs 205692 crore as against Rs 181553 crore. The Individual loan portfolio stood at Rs 192459 crore as against Rs 170658 crore, showcasing a growth of 13%. Developer loan portfolio stood at Rs 13233 crore end December 2019 as against Rs 10895 crore end December 2018.
Net Interest margins improved to 2.42% in Q3FY2020 as against 2.33% in Q3FY2019.
The asset quality of the company continued to remain under pressure. The gross stage 3 (GNPA) exposure at default increased to 2.73% end December 2019 from 2.38% end September 2019 and 1.25% end December 2018. The company has also scaled up provisions to Rs 2584.72 crore end December 2019 from Rs 2083.04 crore end September 2019 and Rs 1555.33 crore end December 2018.
Book value of the company stood at Rs 352.2 per share and adjusted book value (net of net stage 3 assets) stood at Rs 291.5 per share end December 2019.
Financial Performance for 9MFY2020
LIC Housing Finance reported 17% growth in net interest income to Rs 3687.25 crore for 9MFY2020. Other income increased 7% to Rs 71.83 crore, while the total income increased 17% to Rs 3763.08 crore. Operating Expense declined 36% to Rs 360.20 crore. The growth in OP thus was at 28% to Rs 3402.88 crore. After providing deprecation of Rs 22.39 crore and provisions of Rs 925.48 crore, PBT rose 2% to Rs 2442.27 crore. After providing total tax of Rs 461.86 crore, PAT increased 14% to Rs 1980.41 crore in 9MFY2020.
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