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LIC Housing Finance reported 39% dip in the net profit to Rs 421.43 crore in the quarter ended March 2020 (Q4FY2020). Net interest income (NII) of the company declined 7% to Rs 1134.24 crore in Q4FY2020, driven by dip in net interest margin (NIM) to 2.10% in Q4FY2020 from 2.42% in the previous quarter and 2.56% in the corresponding quarter last year. The losses in the other income line stood at 11.53 crore. The net total income declined 11% to Rs 1122.71 crore.
Operating expenses jumped 53% to Rs 255.8 crore, causing 21% dip in the operating profit to Rs 866.91 crore. However, the provisions dipped to Rs 27.25 crore in Q4FY2020 from Rs 103.15 crore in Q4FY2019. Depreciation jumped to Rs 12.94 core from Rs 3.18 core. PBT declined 16% to Rs 826.72 crore. An effective tax rate galloped to 49.0% in Q4FY2020 from 29.7% in Q4FY2019. The net profit dipped 39% to Rs 421.43 crore in Q4FY2020.
Business updates
In the quarter ended March 2020, total disbursements dipped 34% to Rs 11325 crore from Rs 17242 crore in Q4FY2019. Out of that, disbursements in the individual home loan segment dipped 24% to Rs 8877 crore, whereas disbursements in project loans dipped 80% to Rs 413 crore and other retail loans by 41% to Rs 2035 crore in Q4FY2020.
The total loan portfolio rose at slower pace of 8% to Rs 210578 crore as against Rs 194646 crore. The Individual loan portfolio stood at Rs 196340 crore as against Rs 181569 crore, showcasing a growth of 8%. Developer loan portfolio rose 9% to Rs 14237 crore end March 2020 as against Rs 13077 crore end March 2019.
Net Interest margins plunged to 2.10% in Q4FY2020 as against 2.56% in Q4FY2019.
The asset quality of the company continued to remain under pressure. The gross stage 3 (GNPA) exposure at default increased to 2.83% end March 2020 from 2.73% end December 2019 and 1.58% end March 2019. The company has also scaled up provisions to Rs 2612 crore end March 2020 from Rs 2584.72 crore end December 2019 and Rs 1524.04 crore end March 2019.
Book value of the company stood at Rs 360.5 per share and adjusted book value (net of net stage 3 assets) stood at Rs 294.2 per share end March 2020.
Financial Performance for FY2020
LIC Housing Finance reported 10% growth in net interest income to Rs 4821.49 crore for FY2020. Other income dipped 41% to Rs 64.41 crore, while the total income increased 9% to Rs 4885.90 crore. Operating expense declined 16% to Rs 616.11 crore. The OP increased 14% to Rs 4269.79 crore. After providing deprecation of Rs 48.07 crore and provisions of Rs 952.73 crore, PBT declined 3% to Rs 3268.99 crore. After providing total tax of Rs 867.15 crore, PAT declined 1% to Rs 2401.84 crore in FY2020.
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