 "HDFC Q4 profit jumps 27% to Rs 2,862 cr; interest income rises 19%")
Mortgage lender HDFC Monday posted a 26.8 per cent rise in its standalone net profit at Rs 2,862 crore for the fourth quarter ended March 2019.
The company had reported a net profit of Rs 2,257 crore in the January-March quarter of the previous fiscal.
Total income during the quarter rose to Rs 11,586.58 crore as against Rs 9,322.36 crore in the year-ago period.
During the quarter, the net interest income improved to Rs 3,161 crore compared to Rs 2,650 crore in the corresponding quarter of the previous year, representing a growth of 19 per cent, HDFC said in a statement.
The board has proposed a final dividend of Rs 17.50 per share and the proposed final dividend is in addition to the interim dividend of Rs 3.50 per share declared by the board of directors on March 6, 2019, it said.
The total dividend for the year is Rs 21 as against Rs 20 per share for the previous year.
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Besides, the board has also approved issuance of redeemable non-convertible debentures or any other hybrid instruments not in nature of equity shares up to Rs 1.25 lakh crore on private placement basis to fund its business growth.
The company has also approved re-appointment of Nasser Munjee and J J Irani as independent directors for a term of two consecutive years each with effect from July 21, 2019.
"The corporation has adopted Indian Accounting Standards (Ind AS) from April 1, 2018, and the effective date for such transition is April 1, 2017. Accordingly, the standalone and the consolidated financial statements for the financial year ended March 31, 2019, have been prepared in accordance with Ind AS specified under the Companies Act, 2013 and other relevant provisions of the Companies Act, 2013," it said.
The comparative figures of the previous year have been restated to make them comparable, it said.
For the entire 2018-19, its net profit declined by 12 per cent to Rs 9,632.46 crore from Rs 10,959.34 crore in the previous fiscal.
On a consolidated basis, the profit during the year increased to Rs 17,580.51 crore from Rs 13,111.21 crore in the previous fiscal.
The profit numbers for the year ended March 31, 2019, are not comparable with that of the year ended March 31, 2018. In the previous year, the corporation had sold shares in the initial public offer of HDFC Life Insurance, it said.
At the same time, total income on consolidated basis also improved to Rs 96,194.87 crore from Rs 79,819.60 crore in 2017-18.
The net interest income for the year ended March 31, 2019 rose to Rs 11,403 crore compared to Rs 9,635 crore in the previous year, representing a growth of 18 per cent.
With regard to asset quality, it said, the gross non-performing loans as at March 31, 2019, stood at Rs 4,777 crore which is equivalent to 1.18 per cent of the loan portfolio.
The non-performing loans of the individual portfolio stood at 0.70 per cent while that of the non-individual portfolio stood at 2.34 per cent.
The spread on loans over the cost of borrowings for the year ended March 31, 2019, stood at 2.30 per cent.
"Net interest margin (including the upfronting of income on account of loans sold as per Ind AS) stood at 3.3 per cent, the same as in the previous year," it said.
The capital adequacy ratio stood at 19.2 per cent, of which Tier I capital was 17.6 per cent and Tier II capital was 1.6 per cent, it said.
As per the regulatory norms, minimum requirement for the capital adequacy ratio and Tier I capital is 12 per cent and 6 per cent, respectively.