Other income grew 46% to Rs 78.70 crore, which took total income up 31% to Rs 532.10 crore. Operating expenses stood at Rs 72.39 crore, up 10% after which OP grew 35% to Rs 549.72 crore.

Write offs and provisioning of bad debts stood at Rs 34.07 crore, up 391% and depreciation grew 8% to Rs 1.99 crore. Thus PBT grew 27% to Rs 423.66 crore.

After providing for tax (up 27% to Rs 113.59 crore), PAT grew 28% to Rs 310.07 crore.

Six month results

For the six month ended September 2013, NII grew 29% to Rs 908.12 crore. The jump in NII was due to 23% rise in interest income to Rs 4353.97 crore and 22% rise in interest expenses to Rs 3445.85 crore.

Other income grew 22% to Rs 126.38 crore, which took total income up 28% to Rs 1034.50 crore.

Operating expenses stood at Rs 131.70 crore, up 13% after which OP grew 31% to Rs 902.80 crore.

Write offs and provisioning of bad debts stood at Rs 51.17 crore, up 1% and depreciation grew 9% to Rs 3.95 crore. Thus PBT grew 33% to Rs 847.68 crore.

After providing for tax (up 37% to Rs 227.10 crore), PAT grew 32% to Rs 620.58 crore.

Change in strategy

The company has changed its strategy from very aggressive growth to profitability growth to protect its profit margins.

The company strategically reduced landing in Q2 as it decided not to borrow at 11.5% and lend at around 10.5%. Now again borrowing cost has come down to 9.6% and so it is going in full throttle.

One time income and expenses

Other income has one time income of Rs 19 crore due to tax refund. Also there were higher income from mutual funds.

Provisioning has Rs 12 crore of one time provisioning for its investment in Kotak realty Fund. Also company has increased its provisioning considering higher developer bucket loan.

NII to rise going forward

Net Interest Margins for the Q2 stood at 2.22% against 2.10% for the quarter ended September 30, 2012.

During the quarter the company faced pressure on NIMs.

Net Interest Margins for the six months ended September 30, 2013 stood at 2.26% against 2.13% for the corresponding period ended September 30, 2012

The management is confident of ending the year with NIM of 2.4%.

Disbursement

During the quarter, the company disbursed a total of Rs.5947 crore as against Rs.5838 crore for the same period last year. Disbursements in the developer loan segment were Rs 265 crore as against Rs. 121 crore for the same period last year.

For the six months, the company disbursed a total of Rs 11073 crore as against Rs 10629 crore.

Disbursements in the developer loan segment were Rs 332 crore as against Rs. 443 crore for the same period last year.

The company is slowly entering to the developer funding business in a cautious manner to increase its share.

Sanctions

Sanctions were 6500 crore out of which retail sanction was 6150 crore and developer sanction was Rs 350 crore.

Outstanding Mortgage Portfolio

The Outstanding Mortgage Portfolio as on September 30, 2013 was Rs 83216 crore as against Rs 69119 crore on September 30, 2012, up 20%.

The Individual loan portfolio stood at Rs 80704 crore as against Rs 66458 crore, a growth of 21%.

The Developer loan portfolio stood at Rs 2512 crore as on September 30, 2013 as against Rs 2660 crore as on September 30, 2012.

NPAs

Gross NPAs in individual segment was Rs 374 crore or 0.46% as on September 30, 2013 as against Rs 406 crore or 0.61% as on September 30, 2012.

Total Gross NPAs for the company including NPAs on Developer Loans stood at 0.73% as on September 30, 2013 as against 0.60% as on September 30, 2012.

NPAs on Developers Loans was Rs 236 cr as on September 30, 2013 as against Rs 246 cr as on June 30, 2013. There were no new issues and the company is managing to recover previous pending repayments.

Good performance in challenging business environment

In a very challenging business environment, the company has been able to maintain good asset quality and improved profitability. For the full year, it expect loan book growth at around 20% with some improvement in margins

Valuation

The share price trades at Rs 223.