Financial Daily from THE HINDU group of publications
Saturday, Jul 19, 2003
Corporate Results - Housing Finance
Money & Banking - Housing Finance
HDFC posts 22 pc rise in Q1 net
Mumbai , July 18
HOUSING Development Finance Corporation (HDFC) has announced an increase of 22 per cent in net profit, at Rs 167.76 crore, for the quarter ended June 30, 2003.
The company had reported a net profit of Rs 137.3 crore during the corresponding quarter of the previous year.
Income from operations rose only 3.27 per cent, to Rs 725.88 crore from Rs 702.88 crore.
A substantial decrease in total expenditure to Rs 517.42 crore from Rs 530.51 crore shored up gross profit to Rs 210.2 crore from Rs 173.33 crore. Profit before tax increased 24 per cent, to Rs 205.2 crore from Rs 165.83 crore.
The individual loan segment led business during the quarter approvals were higher by 35 per cent in this segment and disbursements higher by 34 per cent during the quarter.
Loan approvals during the quarter grew 30 per cent, to Rs 2,731 crore (Rs 2,105 crore).
Disbursements grew 30 per cent, to Rs 2,092 crore from Rs 1,607 crore.
The loan portfolio, inclusive of investment in preference shares, debentures and inter-corporate deposits for financing real-estate projects, as on June 30, 2003, amounted to Rs 23,778 crore compared to Rs 18,834.79 crore as on the same date of the previous year an increase of 26 per cent.
There is considerable competition in the housing finance segment, and although HDFC's market share may have fallen, its share in the profits of the sector may not have fallen that much, Mr Deepak Parekh, Chairman of HDFC, said, replying to a question at the company's annual general body meeting here on Friday.
To consider buyback in Oct
THE board of directors of HDFC will take up the buyback issue during the time of consideration of the company's half-yearly results in October this year, said the Chairman, Mr Deepak Parekh, at the company's AGM here on Friday.
The Government has now allowed HDFC to apply to the National Housing Bank, which is the regulator, with a proposal for buyback. The NHB and the Union Government would then decide on the new debt-equity ratio norm, which would apply to HDFC should it do a buyback, said Mr Parekh. "We received a letter from the Government in late June," he added.He said the company which had approved an in-principle buyback some nine months ago, had asked for an amendment to the requirement that post-buyback, any company's debt-equity ratio must be 2:1.
Being a housing finance company, we had asked for a separate norm pertaining to debt-equity ratio from the Ministry of Finance and Department for Company Affairs, he said.
The gearing that NHB allows housing finance companies (not with respect to buyback) is now 16:1. HDFC's own debt equity ratio is much lower.
Any actual buyback will also depend on the situation at the time when it may be actually possible, said Mr Parekh.
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