HDB Financial Services (HDBFS) Q4 22/23 earnings summary

Executive summary

• FY23 total income was ₹12,402.88 crore and PAT ₹1,959.35 crore, versus ₹11,306.29 crore and ₹1,011.40 crore in FY22.

• AUM reached ₹70,084 crore at FY23 year-end, up from ₹61,444 crore in FY22; the branch network covered 1,054 cities.

• Management cited higher profits and improved NPA ratios, and remained cautiously optimistic on FY24.

Financial highlights

• PBT was ₹2,627.40 crore versus ₹1,347.56 crore in FY22; total expenses were ₹9,775.48 crore versus ₹9,958.73 crore.

• Finance costs rose to ₹3,511.92 crore from ₹3,325.50 crore; impairment expense fell to ₹1,330.40 crore from ₹2,465.73 crore.

• Basic EPS was ₹24.78 versus ₹12.81; diluted EPS was ₹24.76 versus ₹12.80.

• Operating cash flow was negative ₹7,483.01 crore, versus positive ₹1,987.10 crore in FY22; loan growth drove a ₹10,462.68 crore cash outflow.

Outlook and guidance

• FY24 outlook was cautiously optimistic, supported by a diversified product range, 1,492 branches and digital infrastructure.

• Differentiated customer acquisition and deeper lifecycle engagement were identified as priorities as the economy continues to grow.

• The IMF projected India growth of ~6% in FY24, with lower inflation expected to support demand and industrial activity.