Financial Daily from THE HINDU group of publications
Wednesday, May 15, 2002
Corporate Results - Housing Finance
HDFC net up 22.5 pc; to pay Rs 25 dividend
Mr Deepak Parekh, Chairman, HDFC, addressing a news conference in Mumbai on Tuesday.
MUMBAI, May 14
HOUSING Development Finance Corporation Ltd (HDFC) today reported a 22.5 per cent rise in profit after tax to Rs 580.01 crore for 2001-2002, as against the Rs 473.65 crore of the previous year.
Its board has recommended a dividend of Rs 25 per share (Rs 12.50 per share in 2000-2001), including the one-time special silver jubilee dividend of Rs 10 per share. The dividend on equity shares absorbs Rs 304.28 crore.
HDFC's assets grew by 20 per cent, its expenses by 10 per cent. Total assets amounted to Rs 21,459 crore (Rs 17,842 crore). Total income touched Rs 2,700.15 crore (Rs 2,382.35 crore), including Rs 2,580.21 crore (Rs 2,273.71 crore) as operating income.
Growing at 31 per cent each, loan approvals touched Rs 9,041.25 crore (Rs 6,879.77 crore), while disbursements for the year was Rs 7,616.56 crore (Rs 5803.01 crore). Gross mobilisation of retail deposits - despite rate cuts aggregating 175 basis points and reduction in brokerage - touched Rs 3,221 crore (Rs 2,717 crore).
FII holding in HDFC is now 47 per cent. Of its Rs 21,000-crore balance sheet, floating rate loans (backed by floating rate liabilities) constitute Rs 6,800 crore.
On its fourth quarter, the company informed BSE of a profit after tax of Rs 206.45 crore (Rs 157.6 crore) on a total income of Rs 726.54 crore (Rs 659.9 crore). HDFC's scrip gained from Monday's close of Rs 641.40 to close today at Rs 649.45.
HDFC has revised lending and deposit rates. The new rates should help continue the 30 per cent growth in business, Mr Deepak Parekh, Chairman, HDFC, said at a press briefing. He pointed out the rate cut was happening despite select yield trends in the G-Sec market indicating a possible firming up of interest rates.
"With funding costs sharply reduced through effective liability management, our spread is now 1.96 per cent on entire balance sheet as against the earlier 1.8 per cent," Mr Keki Mistry, Managing Director, HDFC, said. Last fiscal, the company pre-paid Rs 1,100 crore of high-cost bank borrowings and re-priced another Rs 1,100 crore, effecting a 1.42 per cent cut in overall interest cost. Only last week HDFC had completed a five-year bond issue at 8.6 per cent annualised cost, compared to the 11 per cent at which it raised funds a year and a half ago.
Notwithstanding the caution on stronger interest rates, HDFC's spreads would not be affected, Mr Mistry said. For 2002-2003, the company estimates gross mobilisation of deposits worth Rs 3,600-3,700 crore.
By fiscal's close, HDFC's capital adequacy ratio comprising fully of Tier 1 capital stood at 14.5 per cent of risk weighted assets as against the current minimum need of 12 per cent.
Rates cut on loans
For resident individuals, effective May 15 interest rate on HDFC's fixed rate home loans dip by 25-75 basis points, while that of adjustable rate home loans falls by 50 basis points. (The rate for HDFC's 11-15 year loan of above Rs 2 lakh is down to 11.25 per cent from 12 per cent.) Lending rates for NRIs have also been revised.
Interest rates on individual and trust deposits will be lower by 0.25 per cent, effective May 22.
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