Housing Development Finance (HDFC) Q4 17/18 earnings summary

Executive summary

• FY18 was described as an exceptionally strong year: housing-loan demand remained robust, AUM grew 18%, and reported standalone PAT rose 63%, including exceptional items.

• Long-term priorities include extending presence across the housing value chain, pursuing stressed real-estate assets, expanding in health insurance, and supporting subsidiaries; no quarterly or annual earnings guidance is issued.

Financial highlights

• Standalone total income was ₹35,230 crore, up 6% YoY; PBT was ₹15,264 crore, up 42%, and PAT was ₹12,164 crore, up 63%, including exceptional items.

• Excluding exceptional items and one-time transactions, PBT was ₹11,397 crore versus ₹10,082 crore, up 13% YoY.

• Consolidated PBT was ₹17,603 crore, up 39%; PAT attributable to the group was ₹16,255 crore, up 47% YoY.

• Net interest income grew 14%; AUM reached ₹3,99,511 crore and the reported loan book ₹3,59,442 crore, up 18% and 21%, respectively.

Outlook and guidance

• Affordable and mid-income housing demand is expected to rise, supported by urbanisation, home upgrades, policy measures and a financing gap; incremental housing demand was anticipated over the next five years.

• Plans include funding affordable housing projects through equity and mezzanine funds, evaluating distressed real-estate opportunities, and exploring health-insurance and other organic and inorganic growth.

• Management emphasised long-term investment and explicitly does not provide quarterly or annual earnings guidance.