The Hindu Business Line : HDFC net up 23 pc in Q4

Housing Development Finance Corporation's (HDFC) net profit for the fourth quarter rose 22.6 per cent, on the back of a 29.77 per cent growth in income from operations, a lower cost-to-income ratio and a maintenance of interest spread of above 2 per cent.

The fourth quarter profits amounted to Rs 426.5 crore against Rs 347.8 crore in the previous corresponding period.

Income from operations rose 29.8 per cent, to Rs 1234.8 crore (Rs 952.3 crore), while total expenditure rose 34.3 per cent to Rs 721.3 crore (Rs 537.2 crore). The chief item of expenditure — interest and other charges — also rose 34.33 per cent, to Rs 677.3 crore (Rs 504 crore).

For the year as a whole, profit after tax grew by 21 per cent, to Rs 1257.3 crore (Rs 1036.6 crore), while income from operations grew 25.4 per cent, to Rs 4265.5 crore (Rs 3400.60 crore).

Total expenditure grew by 26.5 per cent, to Rs 2,702 crore (Rs 2134.6 crore). Of this, interest and other charges increased by 27 per cent to Rs 2,491 crore (Rs 1,959 crore).

The cost-to-income ratio declined to 12.2 per cent for the year, down from 12.9 per cent in the previous year. The spread on loans over the cost of borrowings for the year was 2.16 per cent, said a statement from the company. Gross profit was recorded at Rs 1,575 crore (Rs 1,275 crore). Provision for tax amounted to Rs 298 crore (Rs 220.2 crore).

The loan portfolio increased 25 per cent over the year to Rs 46,492 crore (Rs 37,216 crore). Loan approvals rose 30 per cent to Rs 25,634 crore and disbursements by 28 per cent to Rs 20,679 crore. NPAs accounted for 0.96 per cent of the company's portfolio, down from 1.10 per cent the previous year.

The company's capital adequacy ratio was 15 per cent of risk weighted assets and Tier-I CAR at 8.5 per cent.

HDFC has recommended a dividend of Rs 20 per share for the year ended March 31, 2006.

The scrip ended lower on the bourses, losing Rs 6.10 on BSE over the day, to close at Rs 1305.80.

Subsidiaries performance

HDFC Standard Life Insurance Company reported a 129 per cent growth in gross premium income (at Rs 1,570 crore) during the year.

HDFC Asset Management Company Ltd reported profits of Rs 45.48 crore, 44 per cent higher the in the previous fiscal.

HDFC Chubb reported a profit after tax of Rs 4.41 crore against a loss of Rs 7.98 crore in the previous year.

HDFC Venture Capital Ltd, investment manager for HDFC Property Fund, made a net profit of Rs 9.08 crore; its directors approving a maiden interim dividend of Rs 120 per share.

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