LIC Housing Finance (LICHSGFIN) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 profit after tax rose 12% year-over-year to ₹1,328.89 crore, with revenue from operations up 3% to ₹6,926 crore and the loan portfolio growing 6% to ₹294,588 crore.

• Individual home loans comprised 85% of the portfolio, with disbursements up 12% year-over-year and 27% sequentially, and project finance disbursements surged 223%.

• Net interest income declined 6% year-over-year to ₹1,974 crore, and net interest margin fell to 2.71% from 3.04% a year ago.

• Stage 3 exposure at default improved to 3.06% from 4.33% a year ago, with technical write-offs of ₹286 crore in Q2.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY25 were approved and reviewed by the Board and Audit Committee.

Financial highlights

• Revenue from operations for Q2 FY25 was ₹6,925.81 crore, up from ₹6,752.83 crore in Q2 FY24; H1 FY25 revenue was ₹13,709.48 crore, up from ₹13,499.34 crore in H1 FY24.

• Net profit for Q2 FY25 was ₹1,328.89 crore, up from ₹1,188.05 crore in Q2 FY24; H1 FY25 net profit was ₹2,629.10 crore, up from ₹2,511.71 crore in H1 FY24.

• Net interest income for H1 FY25 down 8% to ₹3,963 crore; impairment charges fell 72% to ₹220 crore.

• EPS for Q2 FY25 at ₹24.16, up from ₹21.60 in Q2 FY24.

• Capital adequacy ratio at 20.78% as of March 2024, up from 19.77% in September 2023.

Outlook and guidance

• Management expects strong Q3 and Q4 performance, supported by the festive season and new product launches in the affordable segment.

• Double-digit loan growth is targeted for the year, with guidance of 12-15% if PMAY traction materializes.

• Margins are expected to improve by 5-10 basis points in the coming quarters, with NIMs guided at 2.7%-2.9%.

• Focus on expanding individual home loan portfolio and maintaining asset quality.

• Continued emphasis on improving operational efficiencies and digital loan origination.