Housing Development Finance (HDFC) Q4 12/13 earnings summary

Executive summary

• FY13 standalone PAT rose 18% to ₹4,848.34 crore; consolidated PAT attributable to shareholders increased 22% to ₹6,639.72 crore.

• Loan demand remained strong despite India’s weakest GDP growth in a decade; the loan book reached ₹1,70,046 crore, with 81% of annual incremental growth from individual loans.

• Subsidiaries and associates contributed 27% of consolidated PAT, up from 25% in FY12, reinforcing the importance of consolidated performance.

Financial highlights

• Standalone gross income was ₹21,147.62 crore vs ₹17,354.28 crore; PBT rose 16% to ₹6,572.84 crore and PAT rose 18% to ₹4,848.34 crore.

• Net interest income grew 17%; net interest margin was 4.21%.

• Consolidated PBT increased 20% to ₹7,467.28 crore; PAT attributable to shareholders grew 22% to ₹6,639.72 crore.

• Standalone basic EPS was ₹31.84 vs ₹27.97; diluted EPS was ₹31.45 vs ₹27.54. Consolidated basic EPS was ₹43.63 vs ₹37.07.

Outlook and guidance

• Housing finance outlook was described as promising, supported by acute housing shortages, rising disposable incomes, urbanisation and low mortgage penetration.

• Affordable housing demand was identified as a key opportunity; affordable projects were selling quickly, while housing supply and approval bottlenecks remained constraints.

• Emphasis remained on prudent lending, risk-aware construction finance and customer caution around teaser offers and developer-paid interest schemes.