Operating expenses declined 10% to Rs 230.05 crore, leading to 55% surge in the operating profit to Rs 1341.45 crore. However, the provisions zoomed to Rs 977.19 crore in Q4FY2021 from Rs 27.25 crore in Q4FY2020. Depreciation declined 5% to Rs 12.26 core from Rs 12.94 core. PBT declined 57% to Rs 352.00 crore. The company has written back tax provision of Rs 46.92 crore, helping to reduce decline in the net profit at 5% to Rs 398.92 crore in Q4FY2021.

Business updates

In the quarter ended March 2021, total disbursements zoomed 97% to Rs 22362 crore from Rs 11325 crore in Q4FY2020. Out of that, disbursements in the individual home loan segment galloped 114% to Rs 19010 crore, whereas disbursements in project loans jumped 190% to Rs 1197 crore and other retail loans increased by 6% to Rs 2155 crore in Q4FY2021.

The total loan portfolio rose at slower pace of 10% to Rs 232003 crore as against Rs 210578 crore. The Individual loan portfolio stood at Rs 216047 crore as against Rs 196340 crore, showcasing a growth of 10%. Developer loan portfolio rose 12% to Rs 15956 crore end March 2021 as against Rs 14237 crore end March 2020.The Loan Mix is - retail loans - 77.9%, developers loans - 6.8% and retail LAP/LRD/etc - 15.3%

Net Interest margins jumped to 2.66% in Q4FY2021 as against 2.17% in Q4FY2020. The weighted average cost of funds eased to 6.93% in Q4FY2021 from 7.25% a quarter ago and 8.08% a year ago. The weighted yield on advances declined to 9.06% in Q4FY2021 from 9.51% a quarter ago and 10.02% a year ago.

The asset quality of the company continued to remain under pressure. The gross stage 3 (GNPA) exposure at default increased to 4.12% end March 2021 from 2.68% a quarter ago and 1.59% a year ago. The company has also scaled up provisions to Rs 3971.42 crore end March 2021 from Rs 2948.05 crore a quarter ago and Rs 2612.12 crore a year ago.

Book value of the company stood at Rs 402.59 per share and adjusted book value (net of net stage 3 assets) stood at Rs 291.87 per share end March 2021.

Financial Performance FY2021

LIC Housing Finance reported 14% rise in the net profit to Rs 2734.34 crore in the year ended March 2021 (FY2021). Net interest income (NII) of the company increased 9% to Rs 5244.53 crore in FY2021. The other income jumped 134% to Rs 150.58 crore. The net total income moved up 10% to Rs 5395.11 crore.

Operating expenses increased 10% to Rs 679.49 crore. The operating profit improved 10% to Rs 4715.62 crore. However, the provisions jumped to Rs 1317.61 crore in FY2021 from Rs 952.73 crore in FY2020. Depreciation rose 3% to Rs 49.44 core from Rs 48.07 core. PBT rose 2% to Rs 3348.57 crore. An effective tax rate dipped to 18.34% in FY2021 from 26.53% in FY2020. The net profit moved up 14% to Rs 2734.34 crore in FY2021.