HDFC dropped 2.65% to Rs 1,071.95 at 11:30 IST on BSE after the company proposed to make an additional one-time special provision of Rs 450 crore in Q4 March 2016.
The announcement was made after market hours yesterday, 6 April 2016.Meanwhile, the S&P BSE Sensex was down 169.75 points or 0.68% at 24,730.88.
On BSE, so far 66,257 shares were traded in the counter as against average daily volume of 1.85 lakh shares in the past one quarter. The stock hit a high of Rs 1,110 and a low of Rs 1,067 so far during the day. The stock had hit a 52-week low of Rs 1,012 on 25 February 2016. The stock had hit a 52-week high of Rs 1,370.80 on 16 July 2015. The stock had underperformed the market over the past one month till 6 April 2016, falling 2.43% compared with 1.03% gains in the Sensex. The scrip had also underperformed the market in past one quarter, falling 8.88% as against Sensex's 1.99% decline.
The large-cap company has equity capital of Rs 315.97 crore. Face value per share is Rs 2.
HDFC said that the special provision is being done voluntarily and not on account of any regulatory requirement. The provision is on standard assets and it added that the company holds adequate security in respect of all loans. The company added that regulatory provision on standard assets and provision for non-performing loans will continue to be made as per current practices in the quarterly accounts. The company will announce its Q4 results on 2 May 2016.
The company believed that with the objective of further strengthening balance sheet it will be prudent to utilise a part of the exceptional gains to build an additional buffer against any unexpected risk in the future. The company made profit on sale of investments of Rs 1520 crore (net of tax of Rs 1220 crore) in Q4 March 2016 compared with Rs 225 crore in Q4 March 2015. The current quarter's profit includes the profit on sale of shares in HDFC Standard Life Insurance Company to Standard Life (Mauritius Holdings) 2006 Limited. The capital gains tax on the sale of shares is Rs 300 crore.
Income from dividend for Q4 March 2016 was Rs 192 crore compared to Rs 179 crore in the corresponding quarter of the previous year. Meanwhile, under the loan assignment route, HDFC sold loans amounting to Rs 4799 crore in Q4 March 2016 to HDFC Bank compared to Rs 5000 crore during corresponding quarter of the previous year. Loans sold in the preceding twelve months amounted to Rs 12773 crore.
On consolidated basis, HDFC's net profit rose 11% to Rs 2419 crore on 3% growth in total income to Rs 12306.52 crore in Q3 December 2015 over Q3 December 2014.
HDFC is India's first retail housing finance company and is currently one of the largest originators of housing loans in the country.
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