Housing Development Finance (HDFC) Q4 20/21 earnings summary

Executive summary

• FY21 home-loan demand recovered strongly in H2 after lockdown disruption; full-year individual disbursements grew 3% YoY, with digital channels sustaining operations.

• Standalone adjusted PBT grew 19% to ₹13,823 crore; reported PAT fell mainly because FY20 included a large one-off merger gain.

• Consolidated PAT attributable to owners was ₹18,740 crore, down from ₹21,435 crore; reported comparisons were affected by FY20’s GRUH merger gain.

Financial highlights

• Standalone total income was ₹48,176 crore vs ₹58,763 crore; PAT was ₹12,027 crore vs ₹17,770 crore, including FY20’s ₹9,020 crore GRUH-related fair-value gain.

• Standalone NII rose 18% to ₹15,172 crore; inclusive of fees and assigned-loan income, NII was ₹16,372 crore vs ₹13,909 crore.

• Consolidated total income was ₹139,071 crore vs ₹101,796 crore; PBT was ₹24,237 crore vs ₹26,193 crore and PAT ₹20,488 crore vs ₹22,826 crore.

• Consolidated total comprehensive income rose to ₹22,069 crore from ₹16,613 crore; owner-attributable profit was ₹18,740 crore vs ₹21,435 crore.

• Standalone total expenses declined to ₹33,361 crore from ₹38,412 crore; finance costs fell to ₹28,615 crore from ₹31,001 crore.

Outlook and guidance

• Home-loan demand remained structurally strong, supported by low rates, improved affordability, fiscal incentives and stamp-duty concessions; recurring infection waves could cause temporary setbacks.

• FY22 recovery was expected to be uneven amid second-wave uncertainty; RBI’s April 2021 GDP growth projection was 10.5%.

• RBI housing-finance asset thresholds phase up to 60% of assets, including 50% individual housing finance, by March 2024; LCR requirements rise to 100% by December 2025.