LIC Housing Finance Q2 FY25 results: Net profit up 12% to Rs 1,328 crore

The net profit of LIC Housing Finance grew by 12 per cent to Rs 1,328.89 crore in the July-September quarter of FY25 (Q2 FY25), as compared to Rs 1,188.05 crore in the year-ago period.

 

The total income of the company grew marginally by 2.56 per cent to Rs 6,932 crore in Q2 FY25, while total revenue from operations increased to Rs 6,926 crore.

 

The company’s expenses dropped by nearly 2 per cent to Rs 5,267.45 crore. Impairment on financial instruments declined by 81.6 per cent to Rs 77.34 crore from Rs 419.2 crore.

 

Total disbursements for the housing finance company rose by 12 per cent to Rs 16,476 crore in the quarter under review, compared to Rs 14,665 crore in the corresponding period in Q2 FY24.

 

 

Of this, disbursements in the Individual Home Loan segment grew by 4 per cent to Rs 13,051 crore, and project loans improved to Rs 1,397 crore, 223 per cent higher than in the year-ago period.

 

The total loan portfolio stood at Rs 2.94 trillion as of September 30, 2024, up 6 per cent from Rs 2.78 trillion on September 30, 2023.

 

The net interest income (NII) of the company stood at Rs 1,974 crore, 6 per cent lower than the year-ago period. Meanwhile, the net interest margin (NIM) for the quarter stood at 2.71 per cent compared to 3.04 per cent in Q2 FY24 and 2.76 per cent in Q1 FY25.

 

“We are focused on growth this time. We are slightly concerned about the margin we are getting on our products; our backbook has been under pressure, impacting our margins to some extent. Incrementally, there is a lot of competition in the market as well as from banks. Markets are slightly compressed. This is something we are focused on. In Q3 and Q4, we will focus on the prime segment of customers. We realise the need to move into high-margin segments. Last month, we launched an affordable segment product,” said Tribhuwan Adhikari, managing director (MD) and chief executive officer (CEO) of LIC Housing Finance.

 

On an Expected Credit Loss (ECL) basis, provisions for ECL stood at Rs 5,458 crore with a coverage of 49 per cent on Stage 3 as of September 30, 2024, compared to Rs 6,512 crore as of September 30, 2023. During the quarter, the company completed a technical write-off of Rs 286 crore. The Stage 3 exposure on default as of September 30, 2024, stood at 3.06 per cent, down from 4.33 per cent on September 30, 2023, and 3.30 per cent on June 30, 2024.