HDFC Q3 Result: Mortgage Lender's Net Profit Grows 13 Per Cent To Rs 3,691 Crore

The profit before tax for the quarter that ended December 31, 2022, stood at Rs 4,612 crore compared to Rs 4,048 crore in the corresponding quarter of the previous year

Housing Development Finance Corporation Ltd (HDFC) on Thursday reported a 13 per cent rise in its net profit for the third quarter ending on December 31. According to the filing by the firm with BSE, standalone net profit for the October-December quarter (Q3) of the financial year 2022-23 (FY23) stood at Rs 3,691 crore, 13.2 per cent higher than Rs 3,261 crore profit reported in the year-ago period.

The profit before tax for the quarter that ended December 31, 2022, stood at Rs 4,612 crore compared to Rs 4,048 crore in the corresponding quarter of the previous year.

As per the HDFC filing, The profit before tax for the nine months ended December 31, 2022, stood at Rs 14,616 crore. After providing Rs 2,802 crore for tax, the reported profit after tax (PAT) stood at Rs 11,814 crore compared to Rs 10,042 crore in the previous year, representing a growth of 18 per cent. 

In operations, the housing financier's net interest income increased to Rs 4,840 crore from Rs 4,284 crore year over year and Rs 4,639 crore quarter over quarter. The Net Interest Margin (NIM) for the period of April through December was 3.5 per cent.

According to HDFC, its assets under management (AUM) were Rs 7.01 trillion at the end of the December quarter as opposed to Rs 6.19 trillion the year before. Individual loans made up 82 per cent of the AUM of this.

"On an AUM basis, the growth in the individual loan book was 18 per cent, and growth in the total loan book on an AUM basis was 13 per cent. During the quarter ended December 31, 2022, the Corporation assigned loans amounting to Rs 8,892 crore to HDFC Bank," HDFC said in its filing.

During the nine months that ended December 31, 2022, individual approvals and disbursements grew by 21 per cent, and 23 per cent, respectively compared to the corresponding period in the previous year, the company said. 

HDFC said, “The inherent demand for home loans continues to remain good. Growth in home loans was seen in both, the mid-income segment as well as high-end properties. During the nine-months ended December 31, 2022, 94 per cent of new loan applications were received through digital channels.”

HDFC’s distribution network spans 724 outlets which include 213 offices of HDFC’s distribution company, HDFC Sales Private Limited (HSPL).