HDFC Q3 profit grows 13% to ₹3,691 cr; revenue up 29%

In line with estimates, housing loan major HDFC Ltd. has reported a standalone profit after tax (PAT) of ₹3,691 crore in the October-December quarter of 2022, a growth of 13% over ₹3,261 crore net profit in the corresponding quarter of the previous year.

The company's revenue from operations surged to ₹15,246.81 crore in Q3 FY23, up 29% as compared to ₹11,792.21 crore in the year-ago period, HDFC says in an exchange filing. Post Q3 results, the HDFC stock is currently trading 1.84% down at ₹2,612.75 on the NSE.

The NII (net interest income) for the quarter ended December 31, 2022, stood at ₹4,840 crore as compared to ₹4,284 crore in the previous year, registering a growth of 13%. 

HDFC's income from interest grew 30% YoY to ₹14,457 crore in Q3 vs ₹11,055 crore in the year-ago period. The company says its dividend income also more than doubled to ₹482 crore during the quarter.

The lender says as of December 31, 2022, the gross individual non-performing loans stood at ₹8,880 crore, which is equivalent to 1.49% of the portfolio, down from 2.32% as of December 31, 2021. As of December 31, 2022, the corporation carried a total provision of ₹13,274 crore. 

As of December 31, 2022, the lender's assets under management (AUM) stood at ₹7,01,485 crore against ₹6,18,917 crore in the previous year. Individual loans comprise 82% of the AUM.

During the quarter under review, the corporation assigned loans worth ₹8,892 crore, up from the previous year's period of ₹7,468 crore, to HDFC Bank. 

The lender says as of December 31, 2022, the outstanding amount in respect of individual loans sold was ₹97,700 crore, and that it continues to service these loans.  

For the nine months ended December 31, 2022, HDFC’s consolidated profit after tax stood at ₹18,537 crore as compared to ₹16,136 crore in the previous year, representing a growth of 15%. The NII for the period ended December 31, 2022, stood at ₹13,926 crore as compared to ₹12,519 crore in the previous year.

As of December 31, 2022, the corporation’s capital adequacy ratio stood at 23.7%, of which Tier I capital was 23.2% and Tier II capital was 0.5%. This is up from the minimum regulatory requirement for the capital adequacy ratio and Tier I capital at 15% and 10%, respectively. 

For the third quarter that ended December 31, 2022, HDFC’s subsidiary HDFC Bank posted a 19.9% year-on-year (YoY) growth in consolidated net profit to ₹12,698 crore on the back of strong improvement in interest income as well as lower provisions. The net interest income (NII) climbed 25% YoY to ₹22,987.8 crore, supported by a rise in lending rates following RBI’s interest rate hikes.