HDFC Ltd Q4 Results FY2023, Profit at Rs. 4425 crores

On 4th May 2023, HDFC Ltd announced its quarterly results for the last quarter of FY2023.

HDFC Ltd Financial Highlights:

- The net interest income (NII) for the quarter ended March 31, 2023 stood at Rs. 5,321 crore compared to Rs. 4,601 crore in the previous year, representing a growth of 16%. The NII for the year ended March 31, 2023 stood at Rs. 19,248 crore compared to Rs. 17,119 crore in the previous year. 
- The profit before tax for the quarter ended March 31, 2023 stood at Rs. 5,398 crore compared to Rs. 4,622 crore in the corresponding quarter of the previous year. The profit before tax for the year ended March 31, 2023 stood at Rs. 20,014 crore compared to Rs. 17,246 crore in the previous year.
- The reported profit after tax stood at Rs. 4,425 crore compared to Rs. 3,700 crores in the corresponding quarter of the previous year, representing a growth of 20%. The profit after tax for the year ended March 31, 2023 stood at Rs. 16,239 crore compared to Rs. 13,742 crore in the previous year, representing a growth of 18%.

HDFC Lending Operations:

- In the month of March 2023, the Corporation recorded its highest ever monthly individual disbursements.
- During the year, the average size of individual loans stood at Rs. 36.2 lac compared to Rs. 33.1 lac in the previous year.
- During the year ended March 31, 2023, 94% of new loan applications were received through digital channels.

HDFC Assets under Management:

- As at March 31, 2023, the assets under management stood at Rs. 7,23,988 crore as against Rs. 6,53,902 crore in the previous year. 
- As at March 31, 2023, individual loans comprise 83% of the Assets Under Management (AUM). 
- On an AUM basis, the growth in the individual loan book was 17%. On maturity, certain non-individual exposures have been run down to ensure compliance with banking norms in lieu of the impending merger with HDFC Bank.
- The growth in the total loan book on an AUM basis was 11%.
- During the quarter ended March 31, 2023, the Corporation assigned loans amounting to Rs. 9,340 crore to HDFC Bank.
- Loans sold in the preceding 12 months amounted to Rs. 36,910 crore. As at March 31, 2023, the outstanding amount in respect of individual loans sold was Rs. 1,02,071 crore
- The growth in the individual loan book, after adding back loans sold in the preceding 12 months was 24%. The growth in the total loan book after adding back loans sold was 16%. 

HDFC Non-Performing Assets & Provisioning:

- As at March 31, 2023, the gross individual NPLs stood at 0.75% of the individual portfolio, while the gross non-performing non-individual loans stood at 2.90% of the non-individual portfolio. The gross NPLs as at March 31, 2023 stood at Rs. 7,246 crore. This is equivalent to 1.18% of the portfolio as against 1.91% in the previous year.
- As at March 31, 2023, the Corporation carried a total provision of Rs. 12,145 crore against loans. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 1.96%. - The Corporation’s Expected Credit Loss (ECL) charged to the Statement of Profit and Loss for the year ended March 31, 2023 was lower at Rs. 1,795 crore.
- Annualised credit costs for the quarter ended March 31, 2023 stood at 25 basis points. Credit costs for the year ended March 31, 2023 stood at 27 basis points.

HDFC’s Network:

- HDFC’s distribution network spans 737 outlets which include 214 offices of HDFC’s distribution company, HDFC Sales Private Limited (HSPL)

HDFC’s Dividend:

- The Board of Directors declared an interim dividend for the year ended March 31, 2023 of ₹ 44 per equity share of face value of ₹ 2 each compared to a final dividend of ₹ 30 per equity share in the previous year. No final dividend was declared for the year ended March 31, 2023
- The record date for determining the shareholders entitled to interim dividend for the year ended March 31, 2023 shall be Tuesday, May 16, 2023. 
- The interim dividend shall be paid from Thursday, June 1, 2023 onwards. The dividend pay-out ratio is 49.7%.