Housing Development Finance (HDFC) Q4 13/14 earnings summary

Executive summary

• FY14 standalone PAT rose 12% to ₹5,440.24 crore; consolidated PAT attributable to shareholders increased 20% to ₹7,947.82 crore.

• Home-loan demand remained robust despite economic weakness, while individual loans drove 85% of incremental loan-book growth.

Financial highlights

• Standalone revenue was ₹24,197.67 crore vs ₹21,147.62 crore; PBT reached ₹7,440.24 crore, up 13%, and PAT was ₹5,440.24 crore, up 12%.

• Net interest income grew 14%; net interest margin was 4.1%.

• Consolidated PBT was ₹8,845.85 crore vs ₹7,467.28 crore; PAT attributable to shareholders was ₹7,947.82 crore vs ₹6,639.72 crore.

• Standalone basic/diluted EPS was ₹34.89/₹34.62; consolidated basic/diluted EPS was ₹51.01/₹50.61.

Outlook and guidance

• Chairman viewed the worst of the economic slowdown as behind and expected strong home-loan demand, supported by housing shortages, urbanisation and low mortgage penetration.

• Affordable housing was identified as a growth opportunity; advocated developer focus on ₹15–40 lakh homes and raising priority-sector loan limits to ₹40 lakh per unit.

• Rural housing demand remained supported by rising rural incomes, improved infrastructure and remittances; continued expansion toward rural borrowers was planned.