Capitaline

Results 02-Nov-22

Analysis

LIC Housing Finance

Margin declines sharply, disbursements flat

LIC Housing Finance reported 23% rise in the net profit to Rs 304.97 crore in the quarter ended September 2022 (Q2FY2023). However, the net interest income (NII) was flat at Rs 1162.9 crore in Q2FY2023 and net interest margin (NIM) dipped to 1.80% in Q2FY2023 from 2.54% in the previous quarter and 2.00% in the corresponding quarter last year. The other income rose 3% to Rs 42.72 crore. The net total income was flat at Rs 1205.62 crore.

Operating expenses jumped 67% to Rs 436.98 crore, causing 19% dip in the operating profit to Rs 768.64 crore. However, the provisions dipped 40% to Rs 373.81 crore in Q2FY2023 from Rs 625.34 crore in Q2FY2022. Depreciation jumped 25% to Rs 15.98 core from Rs 12.78 core. PBT moved up 23% to Rs 378.85 crore. An effective tax rate eased to 19.50% in Q2FY2023 from 19.77% in Q2FY2022. The net profit increased 23% on low base to Rs 304.97 crore in Q2FY2023.

Business updates

In the quarter ended September 2022, total disbursements rose 4% to Rs 16786 crore from Rs 16110 crore in Q2FY2022. Out of that, disbursements in the individual home loan segment were flat at Rs 14300 crore, whereas disbursements in project loans increased 15% to Rs 407 crore and other retail loans by 46% to Rs 2079 crore in Q2FY2023.

The total loan portfolio rose at steady pace of 10% to Rs 262336 crore as against Rs 237660 crore. The Individual loan portfolio stood at Rs 250617 crore as against Rs 222365 crore, showcasing a growth of 13%. Developer loan portfolio declined 23% to Rs 11719 crore end September 2022 as against Rs 15295 crore end December 2020. The Loan Mix is - retail loans - 82.6%, developers loans - 4.5% and retail LAP/LRD/etc - 12.9%.

Net Interest margins plunged to 1.80% in Q2FY2023 as against 2.00% in Q2FY2022. The weighted average cost of funds increased to 7.10% in Q2FY2023 from 6.70% a quarter ago and 6.76% a year ago. The weighted yield on advances rose to 8.60% in Q2FY2023 from 8.09% a quarter ago, while eased from 8.72% a year ago.

The asset quality of the company was stable. The gross stage 3 (GNPA) exposure at default eased to 4.90% end September 2022 from 4.96% a quarter ago, while increased 2.91% a year ago. The company has scaled up provisions to Rs 5622.03 crore end September 2022 from Rs 5128.31 crore a quarter ago and Rs 5294.52 crore a year ago.

Book value of the company stood at Rs 462.17 per share and adjusted book value (net of net stage 3 assets and 10% of restructured loans) stood at Rs 324.5 per share end September 2022.

Financial Performance H1FY2023

LIC Housing Finance reported 207% rise in the net profit to Rs 1230.45 crore in the six months ended September 2022 (H1FY2023). Net interest income (NII) of the company rose 14% to Rs 2773.09 crore in H1FY2023. The other income moved up 11% to Rs 83.47 crore. The net total income increased 13% to Rs 2856.56 crore.

Operating expenses jumped 17% to Rs 625.16 crore, allowing 13% rise in the operating profit to Rs 2231.4 crore. However, the provisions dipped to Rs 681.52 crore in H1FY2023 from Rs 1455.75 crore in H1FY2022. Depreciation jumped 23% to Rs 30.67 core from Rs 25.03 core. PBT jumped 203% to Rs 1519.21 crore. An effective tax rate declined to 19.01% in H1FY2023 from 20.04% in H1FY2022. The net profit jumped 207% to Rs 1230.45 crore in H1FY2023.

LIC Housing Finance: Standalone Results
	2209 (3)	2109 (3)	Var %	2209 (6)	2109 (6)	Var %	2203 (12)	2103 (12)	Var %
Interest Inc.	5049.30	4673.35	8	10299.53	9498.64	8	19688.46	19697.11	0
Interest Exp.	3886.40	3505.97	11	7526.44	7055.94	7	14153.65	14452.58	-2
Net Interest Inc.	1162.90	1167.38	0	2773.09	2442.70	14	5534.81	5244.53	6
Other inc.	42.72	41.65	3	83.47	75.40	11	264.56	150.58	76
Total inc.	1205.62	1209.03	0	2856.56	2518.10	13	5799.37	5395.11	7
Op. Exp.	436.98	261.96	67	625.16	535.44	17	980.54	679.49	44
OP	768.64	947.07	-19	2231.40	1982.66	13	4818.83	4715.62	2
Woff/Prov. of B/D	373.81	625.34	-40	681.52	1455.75	-53	1988.24	1317.61	51
Dep.	15.98	12.78	25	30.67	25.03	23	52.44	49.44	6
PBT	378.85	308.95	23	1519.21	501.88	203	2778.15	3348.57	-17
Total Tax	73.88	61.09	21	288.76	100.58	187	490.87	614.23	-20
PAT	304.97	247.86	23	1230.45	401.30	207	2287.28	2734.34	-16
EPS*(Rs)	#	#		#	#		41.6	49.7
Adj BV (Rs)	324.5	291.3		324.5	291.3		313.6	288.8
* On current equity of Rs 110.08 crore. Face Value: Rs 2
# EPS is not annualised due to seasonality of business
Figures in Rs crore,
Source: Capitaline Corporate Database

Previous News

LIC Housing Finance to announce Quarterly Result
( Corporate News - 20-Jul-23 10:33 )

LIC Housing Finance
( Analyst Meet / AGM - Conference Call 05-Aug-22 14:11 )

LIC Housing Finance appoints director
( Corporate News - 25-Jul-22 20:21 )

LIC Housing spurts after Q3 PAT rises 6% YoY to Rs Rs 770 cr
( Hot Pursuit - 28-Jan-22 12:02 )

LIC Housing Finance standalone net profit rises 5.51% in the March 2023 quarter
( Results - Announcements 17-May-23 07:42 )

LIC Housing Finance consolidated net profit rises 19.75% in the December 2020 quarter
( Results - Announcements 29-Jan-21 16:08 )

LIC Housing Finance skids after Q2 FY22 PAT falls 68% to Rs 250 cr
( Hot Pursuit - 22-Oct-21 10:15 )

LIC Housing Finance to hold board meeting
( Corporate News - 24-Feb-24 12:19 )

LIC Housing Finance Q4 PAT up nearly 6% YoY; disbursements at Rs 16,027 crore
( Hot Pursuit - 17-May-23 09:47 )

LIC Housing Finance Ltd leads losers in 'A' group
( Hot Pursuit - 22-Jun-20 15:00 )

LIC Housing Finance consolidated net profit declines 68.41% in the September 2021 quarter
( Results - Announcements 22-Oct-21 07:59 )