The housing finance major's net profit declined 27.55% to Rs 2,870.12 crore in Q2 September 2020 from Rs 3,961.53 crore in Q2 September 2019.
Total income stood at Rs 11,732.70 crore in Q2 September 2020, falling 13% from Rs 13,494.12 crore in Q2 September 2019. Profit before tax fell 22.04% to Rs 3,531.78 crore during the period under review. Total tax expense rose 16.32% to Rs 661.66 crore in Q2 FY21 over Q2 FY20. The result was announced during market hours today, 2 November 2020.
Dividend income & profit on sale of investments stood at Rs 323 crore during the quarter compared with Rs 2,701 crore in the same period last year. Gain/loss on fair value adjustments was at Rs 166 crore in Q2 FY21 compared with a loss of Rs 322crore in Q2 FY20. Net gains on loans assigned in Q2 FY21 was Rs 159 crore as against Rs 264 crore in Q2 FY20. Charge for employee stock options was Rs 46 crore compared with Rs 4 crore last year. Provisioning (including provisioning for the impact of COVID-19) stood at Rs 436 crore as against Rs 754 crore in Q2 FY20.
HDFC said that September and October 2020 saw the strongest recovery since the outbreak of the pandemic. During the quarter ended 30 September 2020, individual loan application receipts grew 12% and approvals grew by 9% compared to the corresponding quarter of the previous year. Individual disbursements during the quarter ended 30 September 2020 were at 95% levels of the previous year.
HDFC's net interest income (NII) for the quarter ended 30 September 2020 stood at Rs 3,647 crore, rising 21% from Rs 3,021 crore posted in the same period last year. Net Interest Margin stood at 3.3% in Q2 September 2020.
The NBFC's capital adequacy ratio stood at 20.7% in Q2 September 2020, higher than the regulatory requirement of 14%.
The gross non-performing loans as at September 30, 2020 stood at Rs 8,511 crore. HDFC said it is equivalent to 1.81% of the loan portfolio. The non-performing loans of the individual portfolio stood at 0.84% while that of the non-individual portfolio stood at 4.19%. The company carried a total provision of Rs 5,621 crore. Of this, Rs 3,168 crore is towards provisioning for standard assets and Rs 2,453 crore is towards non-performing assets. The corporation made a provision of Rs 1,200 crore towards COVID-19 impact. The provisions as of 30 September 2020 stood at Rs 12,304 crore in Q2 September 2020. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 2.60%
On an AUM basis, the growth in the individual loan book was 9% while the growth in the non-individual loan book was 13%. HDFC said total loan growth on an AUM basis was 10%. As at 30 September 2020, the assets under management stood at Rs 5,40,270 crore as against Rs 4,90,072 crore in the previous year. The average size of individual loans stood at Rs 26.7 lakh compared with Rs 27 lakh in the previous year.
On a consolidated basis, HDFC posted a 53% decline in net profit to Rs 5,035.41 crore in Q2 September 2020 from Rs 10,748.69 crore registered in Q2 September 2019. Revenue from operations stood at Rs 34,082.97 crore in Q2 September 2020, 3.84% higher than Rs 32,823 crore recorded in Q2 September 2019.
HDFC's consolidated profit before tax declined 51% year on year to Rs 5906 crore in Q2 September 2020 over Q2 September 2019. Tax expenses declined 33.7% YoY to Rs 870.89 crore in Q2 September 2020.
Shares of HDFC surged 6.62% at Rs 2050 on BSE.
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