Housing Development Finance (HDFC) Q4 19/20 earnings summary

Executive summary

• FY20 reported net profit was ₹17,770 crore vs ₹9,632 crore; adjusted PBT rose 12% to ₹12,541 crore, excluding fair-value gains and investment-sale profits tied to the GRUH-Bandhan transaction.

• AUM reached ₹5,16,773 crore, up 12%; individual lending grew faster as non-individual lending was curtailed to protect asset quality.

• COVID-19 disrupted lending late in March; housing demand was viewed as intact, but the duration and financial effects of the crisis remained uncertain.

Financial highlights

• Total income rose 35% YoY to ₹58,763 crore; expenses increased 27% to ₹38,412 crore, taking PBT to ₹20,351 crore vs ₹13,119 crore.

• Adjusted PBT, excluding fair-value changes, investment-sale gains, dividends and provisioning, grew 12% to ₹12,541 crore from ₹11,159 crore.

• Consolidated PBT increased 19% to ₹26,193 crore; PAT before OCI rose 30% to ₹22,826 crore, and profit attributable to shareholders grew 32% to ₹21,435 crore.

• Standalone OCI was a loss of ₹6,652 crore; total comprehensive income was ₹11,117 crore vs ₹9,501 crore.

Outlook and guidance

• Management expected underlying housing demand to remain intact and anticipated a longer recovery period as businesses and the economy normalised after lockdown.

• COVID-19's impact remained dependent on uncertain future developments, including lockdown duration, possible infection waves and the pace of economic recovery.

• Policy priorities advocated included broader ECB access for housing finance, one-time restructuring of real-estate loans and legal changes enabling end-to-end online mortgages.