HDFC's Q2 net up 22% at Rs 248.13 cr

BS 200 SCORECARD

Housing Development Finance Corporation (HDFC) today reported a 22 per cent rise in net profit to Rs 248.13 crore in the second quarter ended September 30, 2004, from Rs 203.24 crore a year ago.

Its income from operations in July-September 2004 was up 8.59 per cent to Rs 840.26 crore, but its total expenditure during the second quarter was nearly flat at Rs 528.36 crore against Rs 521.04 crore.

The net profit growth has been much higher than income from operations as it managed its spreads better in a falling interest regime.

"Our cost of borrowing was 6.5 per cent and with a spread of 2.2 per cent, the returns were 8.7 per cent," HDFC's Conrad D'souza told Business Standard.

Its net profit for the six months ended September 30, 2004, was also up 22 per cent to Rs 452.75 crore against Rs 371 crore a year ago. The housing finance company's operating profit for the six month period was Rs 558.29 crore, a 23 per cent increase over Rs 454.50 crore in April-September 2003.

Loan approvals by HDFC during the first half of 2004-05 were up 30 per cent to Rs 8,907 crore from Rs 6,872 crore a year ago, while loan disbursements were up 28 per cent to Rs 6,983 crore from Rs 5,471 crore a year ago.

Conrad said HDFC expects loan disbursements pace to continue at the same rate. As on September 30, 2004, the total assets of HDFC stood at Rs 36,010 crore as against Rs 28,860 crore on September 30, 2003, an increase of 25 per cent.

The loan portfolio (including loans outstanding, deposits and investments in preference shares and debentures for financing real estate related projects) as on September 30, 2004, amounted to Rs 31,938 crore, a 27 per cent rise against Rs 25,148 crore in the year ago period.

HDFC raised loans from commercial banks amounting to Rs 6,203 crore in the first half of 2004-05 and also availed refinance of Rs 750 crore from National Housing Bank. HDFC also raised Rs 2,350 crore through private placement of non-convertible debentures during the current financial year, including Rs 400 crore of subordinated debt.

HDFC said it raised these funds at rates comparable with the lowest in the market. HDFC's capital adequacy ratio as on September 30, 2004, was 14.7 per cent of the risk weighted assets. With Tier 1 capital at 13.3 per cent. The minimum capital adequacy required is 12 per cent.