Housing Development Finance (HDFC) Q4 14/15 earnings summary

Executive summary

• FY15 delivered steady growth: standalone PBT rose 16% to ₹8,624 crore; PAT was ₹5,990 crore, or ₹6,355 crore excluding the Special Reserve DTL charge.

• Loan book reached ₹2,28,181 crore; total growth was 20% including loans sold and 16% net of loans sold.

• Outlook was supported by healthy individual home-loan demand and the national Housing for All agenda, while affordability, construction-sector constraints and global volatility remained challenges.

Financial highlights

• Standalone total revenue was ₹27,471 crore versus ₹24,198 crore; PBT was ₹8,624 crore versus ₹7,440 crore, up 16% YoY.

• Standalone PAT was ₹5,990 crore versus ₹5,440 crore; excluding ₹365 crore DTL on Special Reserve, PAT was ₹6,355 crore, up 17% YoY.

• Consolidated PAT attributable to shareholders was ₹8,763 crore versus ₹7,948 crore, up 10%; adjusted for DTL and Zero Coupon Debenture premium, PAT was ₹8,732 crore versus ₹7,591 crore, up 15%.

• Standalone loan book rose to ₹2,28,181 crore from ₹1,97,100 crore; total growth was 20% including sold loans and 16% net of sold loans.

Outlook and guidance

• Individual home-loan demand remained healthy, led by Tier 1, 2 and 3 cities; rising incomes, improved affordability and tax benefits supported borrowing.

• Housing for All by 2022 targets 2 crore urban homes and 4 crore rural homes, creating potential demand for housing finance.

• Plans included intensifying rural and unorganised-sector lending through tailored rural housing products and HDFC Reach.

• Management expected larger CSR commitments and deployment in the coming year as the Foundation’s team and execution processes became established.