The Hindu Business Line : LIC Housing net up at Rs 45 cr; to hike equity

LIC Housing Finance has reported a 9.4 per cent increase in net profit at Rs 45.23 crore for the quarter ended December 31, 2003 against Rs 41.34 crore during the corresponding year-ago quarter.

The board of directors has given its approval to enhance the equity capital by issuing 10 million equity shares by way of private placement or through a GDR offering. It is in the process of finalising the structure of the issue, according to a news release from LIC Housing Finance.

The net profit increase was on account of lower expenses as well as deferred tax asset.

Income from operations, at Rs 255.5 crore, decreased by more than nine per cent (Rs 269.9 crore). Interest expenses decreased to Rs 164.31 crore (Rs 171.28 crore) while other expenses also fell to Rs. 37.23 crore (Rs 53.49 crore).

Profit before tax amounted to Rs 49.79 crore. Provision for taxation was at Rs 15.5 crore (Rs 14.23 crore) whereas deferred tax asset amounted to Rs 10.94 crore against Rs 3.07 crore.

The company said it had recorded a "healthy growth" in business during the quarter. Sanctioned loans at Rs 1,257.42 crore were up 20.5 per cent, with outstanding mortgage portfolio, as of December 31, also up by nearly 26 per cent, at Rs 9,170.77 crore. The company disbursed a total of Rs 1,010.74 crore.

"We are negotiating with our lenders for reducing the cost of funds on a sizeable portion of our existing liabilities and are confident of improving our net interest margins in the fourth quarter," said Mr S.C. Jain, Director and Chief Executive.

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