Housing Development Finance (HDFC) Q4 11/12 earnings summary

Executive summary

• FY2011-12 PAT rose to ₹4,122.62 crore from ₹3,534.96 crore; loan approvals and disbursements grew 20% and 18%, respectively.

• Loan book reached ₹1,40,875 crore, up 20% YoY; growth would have been 25% including loans sold.

Financial highlights

• Revenue was ₹17,354.28 crore vs ₹12,878.07 crore; PBT ₹5,665.62 crore vs ₹4,866.96 crore, up 16% YoY.

• PAT grew 17% YoY; basic EPS was ₹27.97 and diluted EPS ₹27.54, after adjusting PAT for Shelter Assistance Reserve utilization.

• Consolidated PAT attributable to the group rose 21% to ₹5,462.51 crore; consolidated basic/diluted EPS was ₹37.07/₹36.50.

Outlook and guidance

• Individual home-loan demand remained robust; growth in Tier II and Tier III cities offset slower property sales in some metros.

• Housing demand was expected to remain strong, supported by housing shortages, low mortgage penetration, rising incomes and continued fiscal incentives.

• Fixed First Home Loans offered an initial fixed rate through November 2014 or November 2016, then converted to adjustable rates; customer response was positive.