LIC Housing Finance reported 23% rise in net profit to Rs 304.97 crore on an 8% increase in total income to Rs 5,092 crore in Q2 FY23 over Q2 FY22.
Net interest income (NII) fell by 1% to Rs 1,162.90 crore in Q2 FY23 from Rs 1,172.94 crore in Q2 FY22. Net interest margin (NIM) for the quarter stood at 1.80% as against 2% for Q2 FY22.
Impairment on financial instruments and net loss on de-recognition of financial instruments amounted to Rs 565.80 crore in the second quarter, which is lower by 11% on YoY basis. The company had recorded an impairment charge of Rs 639.15 crore in the same period last year.
Profit before tax in Q2 FY23 stood at Rs 378.85 crore, up by 23% from Rs 308.95 crore in Q2 FY22. Tax Expense aggregated to Rs 73.88 crore (up 21% YoY) during the period under review.
Total disbursements were at Rs 16,786 crore in Q2 FY23, as against Rs 16,110 crore for the corresponding period in Q2 FY22, a growth of 4%.
Out of this, disbursements in the Individual Home Loan segment were at Rs.14,300 crore (down 0.2% YoY) and project loans amounted to Rs 407 crore (up 15% YoY) in Q2 FY23.
The total loan portfolio stood at Rs 2,62,336 crore as against Rs 2,37,660 crore on 30 September 2021, a growth of 10%. Out of which individual home loans grew at 15% from Rs 1,88,348 crore to Rs 2,16,771 crore as on 30 September 2022.
The provisions for expected credit loss (ECL) stood at Rs 6,522 crore with a coverage of 44% on Stage-3 as on 30 September 2022 as against Rs 5,355 crore as on 30 September 2021.
The Stage 3 exposure on default as on 30 September 2022 stood at 4.90% as against 5.14% as on 30 September 2021 and 4.96% as on 30 June 2022.
Y. Viswanatha Gowd, managing director & chief executive officer of LIC Housing Finance, said: "Consumer sentiment continued to remain positive in the last few months, which resulted in a sharp uptick in demand for residential properties.
Affordable housing segment also continued to show robust demand in many parts of the country. This is despite the fact that inflationary trends along with higher interest rates, has resulted in rise of home prices in across various regions.
Our digital transformation initiatives have started showing results leading to increase in efficiency. The success of our HomY app has helped our company to improve penetration in the young home buyer's segment.
A domestic brokerage has reportedly pegged the company's Q2 profit at Rs 893.1 crore and NII at Rs 1,613.8 crore.
Reacting to the lower-than-expected earnings, LIC Housing Finance share slumped 9.09% to Rs 364 against the previous close of Rs 400.40 on BSE.
Over 13.51 lakh shares of the company had changed hands in the counter as against an average trading volume of 1.44 lakh shares in the past two weeks.
On the daily chart, the stock is trading below its 50-day,100-day and 200-day simple moving average (SMA) placed at 412.89, 383.54 and 376.16, respectively.
LIC Housing Finance is one of the largest housing finance companies in India. It has one of the widest networks of offices across the country and representative office in Dubai. In addition, the company also distributes its products through branches of its subsidiary LIC HFL Financial Services.
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