Capitaline

Results 05-Aug-22

Analysis

LIC Housing Finance

Loan growth improves to 10%

LIC Housing Finance reported 503% surge in the net profit to Rs 925.48 crore in the quarter ended June 2022 (Q1FY2023). Net interest income (NII) of the company increased 26% to Rs 1610.19 crore in Q1FY2023, driven by rise in net interest margin (NIM) to 2.54% in Q1FY2023 from 2.20% in the corresponding quarter last year. The other income increased 21% to Rs 40.75 crore. The net total income moved up 26% to Rs 1650.94 crore.

Operating expenses declined 31% to Rs 188.18 crore, supporting 41% jump in the operating profit to Rs 1462.76 crore. Further, the provisions also plunged 63% to Rs 307.71 crore in Q1FY2023 from Rs 830.41 crore in Q1FY2022. Depreciation jumped 20% to Rs 14.69 core from Rs 12.25 core. PBT galloped 491% to Rs 1140.36 crore. An effective tax rate declined to 18.84% in Q1FY2023 from 20.47% in Q1FY2022. The net profit jumped 503% to Rs 925.48 crore in Q1FY2023.

Business updates

In the quarter ended June 2022, total disbursements surged 76% to Rs 15201 crore from Rs 8652 crore in Q1FY2022. Out of that, disbursements in the individual home loan segment galloped 72% to Rs 13131 crore, whereas disbursements in project loans also increased 30% to Rs 309 crore and other retail loans zoomed 130% to Rs 1761 crore in Q1FY2023.

The total loan portfolio rose at improved pace of 10% to Rs 255712 crore as against Rs 232548 crore, showing increase from 8% growth end March 2022. The Individual loan portfolio stood at Rs 243269 crore as against Rs 216947 crore, showcasing a growth of 12%. Developer loan portfolio declined 20% to Rs 12443 crore end June 2022 as against Rs 15601 crore end December 2020.

The Loan Mix is - retail loans - 82.0%, developers loans - 4.9% and retail LAP/LRD/etc - 13.2%.

Net Interest margins improved to 2.54% in Q1FY2023 as against 2.20% in Q1FY2022, while eased from 2.65% in Q4FY2022. The weighted average cost of funds rose on sequential basis to 6.70% in Q1FY2023 from 6.52% a quarter ago, while declined from 6.88% a year ago. The weighted yield on advances declined to 8.09% in Q1FY2023 from 8.39% a quarter ago and 8.80% a year ago.

The asset quality of the company has witnessed slight pressure in Q1FY2023. The gross stage 3 (GNPA) exposure at default rose to 4.96% end June 2022 from 4.64% a quarter ago and 3.95% a year ago.

The company has also scaled up provisions to Rs 5128.31 crore end June 2022 from Rs 5020.55 crore a quarter ago and Rs 4613.35 crore a year ago.

Book value of the company stood at Rs 465.07 per share and adjusted book value (net of net stage 3 assets) stood at Rs 314.18 per share end June 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
	2206 (3)	2106 (3)	Var %	2203 (12)	2103 (12)	Var %
Interest Inc.	5250.23	4825.28	9	19688.46	19697.11	0
Interest Exp.	3640.04	3549.97	3	14153.65	14452.58	-2
Net Interest Inc.	1610.19	1275.31	26	5534.81	5244.53	6
Other inc.	40.75	33.76	21	264.56	150.58	76
Total inc.	1650.94	1309.07	26	5799.37	5395.11	7
Op. Exp.	188.18	273.48	-31	980.54	679.49	44
OP	1462.76	1035.59	41	4818.83	4715.62	2
Woff/Prov. of B/D	307.71	830.41	-63	1988.24	1317.61	51
Dep.	14.69	12.25	20	52.44	49.44	6
PBT	1140.36	192.93	491	2778.15	3348.57	-17
Total Tax	214.88	39.49	444	490.87	614.23	-20
PAT	925.48	153.44	503	2287.28	2734.34	-16
EPS*(Rs)	#	#		41.6	49.7
Adj BV (Rs)	322.4	213.2		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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