Capitaline

Results 19-May-22

Analysis

LIC Housing Finance

Profit jumps on dip in credit cost, margins and asset quality improves

LIC Housing Finance reported robust 180% jump in the net profit to Rs 1118.64 crore in the quarter ended March 2022 (Q4FY2022). Net interest income (NII) of the company increased 9% to Rs 1637.49 crore in Q4FY2022, driven by high and stable net interest margin (NIM) at 2.65% in Q4FY2022 from 2.42% in the previous quarter and 2.66% in the corresponding quarter last year. The other income jumped 79% to Rs 119.34 crore. The net total income declined 12% to Rs 1756.83 crore.

Operating expenses rose 9% to Rs 251.28 crore, causing 12% rise in the operating profit to Rs 1505.55 crore. However, the provisions dipped 82% to Rs 176.93 crore in Q4FY2022 from Rs 977.19 crore in Q4FY2021. Depreciation jumped 16% to Rs 14.21 core from Rs 12.26 core. PBT zoomed 273% to Rs 1314.41 crore. An effective tax rate galloped to 14.89% in Q4FY2022 from negative tax of 13.33% in Q4FY2021. The net profit dipped 180% to Rs 1118.64 crore in Q4FY2022.

Business updates

In the quarter ended March 2022, total disbursements declined 14% on a high base to Rs 19315 crore from Rs 22362 crore in Q4FY2021. Out of that, disbursements in the individual home loan segment declined only 1% to Rs 18887 crore, whereas disbursements in project loans dipped 64% to Rs 428 crore.

The total loan portfolio rose at slower pace of 8% to Rs 251120 crore as against Rs 232003 crore. The Individual loan portfolio stood at Rs 238142 crore as against Rs 216047 crore, showcasing a growth of 10%.

Developer loan portfolio declined 19% to Rs 12978 crore end March 2022 as against Rs 15956 crore end December 2020. The Loan Mix is - retail loans - 81.3%, developers loans - 5.2% and retail LAP/LRD/etc - 13.5%.

Net Interest margins was steady at 2.65% in Q4FY2022 as against 2.66% in Q4FY2021.

The weighted average cost of funds eased to 6.52% in Q4FY2022 from 6.69% a quarter ago and 6.93% a year ago. The weighted yield on advances moderated to 8.39% in Q4FY2022 from 8.52% a quarter ago, while eased from 9.06% a year ago.

The asset quality of the company has continued to show improvement. The gross stage 3 (GNPA) exposure at default declined to 4.64% end March 2022 from 5.04% a quarter ago and remained higher from 2.47% a year ago. The company has also scaled up provisions to Rs 5020.55 crore end March 2022 from Rs 4876.37 crore a quarter ago and Rs 3817.10 crore a year ago.

Book value of the company stood at Rs 448.25 per share and adjusted book value (net of net stage 3 assets) stood at Rs 327.77 per share end March 2022.

Financial Performance FY2022

LIC Housing Finance reported 16% decline in the net profit to Rs 2287.28 crore in the year ended March 2022 (FY2022). Net interest income (NII) of the company rose 6% to Rs 5534.81 crore in FY2022. The other income jumped 76% to Rs 264.56 crore. The net total income increased 7% to Rs 5799.37 crore.

Operating expenses jumped 44% to Rs 980.54 crore, allowing the operating profit to rise 2% to Rs 4818.83 crore. However, the provisions increased to Rs 1988.24 crore in FY2022 from Rs 1317.61 crore in FY2021. Depreciation rose 6% to Rs 52.44 core from Rs 49.44 core. PBT declined 17% to Rs 2778.15 crore. An effective tax rate eased to 17.67% in FY2022 from 18.34% in FY2021. The net profit dipped 16% to Rs 2287.28 crore in FY2022.

LIC Housing Finance: Standalone Results
	2203 (3)	2103 (3)	Var %	2203 (12)	2103 (12)	Var %
Interest Inc.	5189.25	4897.80	6	19688.46	19697.11	0
Interest Exp.	3551.76	3392.87	5	14153.65	14452.58	-2
Net Interest Inc.	1637.49	1504.93	9	5534.81	5244.53	6
Other inc.	119.34	66.57	79	264.56	150.58	76
Total inc.	1756.83	1571.50	12	5799.37	5395.11	7
Op. Exp.	251.28	230.05	9	980.54	679.49	44
OP	1505.55	1341.45	12	4818.83	4715.62	2
Woff/Prov. of B/D	176.93	977.19	-82	1988.24	1317.61	51
Dep.	14.21	12.26	16	52.44	49.44	6
PBT	1314.41	352.00	273	2778.15	3348.57	-17
Total Tax	195.77	-46.92	-517	490.87	614.23	-20
PAT	1118.64	398.92	180	2287.28	2734.34	-16
EPS*(Rs)	#	#		41.6	49.7
Adj BV (Rs)	313.6	288.8		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

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