HDFC Q4FY18: Six key takeaways of the financial performance

The Housing Development Finance Corp (HDFC) has surpassed analysts’ estimates in terms of standalone net profit for the fourth quarter ended March 2018, posting PAT of Rs 2,846.22 crore in Q4FY18, rising by 39.23% from Rs 2,044.20 crore in the corresponding period of the previous year. A Bloomberg poll of analysts expected HDFC to report PAT of Rs 2,550 crore in Q4FY18. 

Standalone revenue from operations came in at Rs 9,327.84 crore during the quarter, rising by 10.34% from Rs 8,453.41 crore a year ago the same period. Also, the revenue surged by 7.65% compared to Rs 8,665.13 crore of Q3FY18. 

Let’s have a look at six key takeaways from the HDFC’s financial audit report. 

Consolidated performance

On consolidated basis, PAT stood at Rs 3,961.17 crore in Q4FY18 which was up by 28.63% from Rs 3,079.33 crore in Q4FY17, but down by 40.71% from Rs 6,681.54 crore in Q3FY18.  Consolidated total income was at Rs 21,248.79 crore growing by 17.78% from Rs 18,040.59 crore same period a year ago. 

On consolidated segment-wise revenue break up, loan business by 13.43% yoy to Rs 10,226 crore in Q4FY18, while life insurance business rose by 8.64% to Rs 9,794.81 crore, general insurance up by 4.52% to Rs 931.67 crore, and asset management business growing by 16.94% to Rs 529.99 crore

FY18 performance 

For the entire FY18, consolidated PAT was at Rs 16,254.96 crore, up by 47.08% versus Rs 11,051.52 crore in FY17, while total income stood at Rs 69,141.67 crore, increasing by 13.18% as against Rs 61,087.63 crore in FY17. 

For FY18, the standalone PAT increased by 63.43% to Rs 12,163.69 crore in comparison of Rs 7,442.64 crore in the previous fiscal FY17. Revenue during FY18 stood at Rs 35,229.89 crore, up by 6.24%, as against Rs 33,159.60 crore in the previous fiscal. 

Dividend

The board recommended a final dividend of Rs 16.50 per share at a face value of Rs 2 each for the FY18. The dividend, if approved by the members, will be dispatched commencing from the day after ensuing Annual General Meeting (AGM).  Total dividend for the year, including interim dividend, stood at Rs 20 per share as against Rs 18 per share for the previous year. 

Re-appointment of Keki M Mistry

On recommendation of the nomination and remuneration committee of directors, the board also approved the re-appointment of Keki M Mistry as the Managing Director (designated as Vice Chairman and Chief Executive Officer) of the company for a period of 3 years with effect from November 14, 2018, subject to approval of the members at the ensuing AGM. 

Issue of debt securities 

The board has approved issuance of redeemable Non-convertible debentures up to Rs 85,000 crore on a private placement basis in terms of the provisions of section 42, and other applicable provisions of Companies Act 2013, subject to the approval of the members at the ensuing AGM.

Increase in borrowing powers

The board approved the increase in overall borrowing powers of the HDFC such that the total outstanding borrowing does not exceed Rs 5,00,000 crore at any point of time, subject to approval from members at the ensuing AGM, which will be held on July 30, 2018 in Mumbai. 

HDFC share price ended at Rs 1,884.65 per piece on the BSE, up by Rs 26.80 or 1.44%. Overall, the company’s stock rose by 2% on Monday.