Housing Development Finance (HDFC) Q4 15/16 earnings summary

Executive summary

• FY16 standalone profit after tax rose 18% to ₹7,093 crore; consolidated profit attributable to shareholders increased 16% to ₹10,190 crore.

• Loan book reached ₹2,59,224 crore; total loan-book growth was 19% including loans sold and 14% net of loans sold.

• Individual home loans drove performance: they were 73% of AUM and contributed 83% of incremental AUM growth.

Financial highlights

• Standalone revenue from operations was ₹29,257 crore versus ₹26,960 crore; profit before tax was ₹10,108 crore versus ₹8,624 crore.

• Standalone PAT was ₹7,093 crore after ₹379 crore DTL on Special Reserve; adjusted PAT before that DTL was ₹7,472 crore, up 18% YoY.

• Standalone basic/diluted EPS was ₹44.43/₹44.10; reported profit included ₹1,513 crore from the HDFC Life stake sale.

• Consolidated revenue was ₹53,257 crore versus ₹48,390 crore; PBT was ₹11,613 crore and attributable PAT ₹10,190 crore, up 16%.

Outlook and guidance

• Outlook was guardedly optimistic, with a pickup in the investment cycle viewed as imminent and housing policy support expected to aid demand.

• Affordable-housing tax incentives, first-time buyer benefits and the Real Estate Regulation and Development Act were seen as supportive; state-level implementation and timing remained uncertain.

• Online, time-bound project approvals and lower land costs were identified as important to improving housing affordability and supply.