HDFC Q4 Results: Net profit increased 20% YoY to Rs 4,425 cr

HDFC Ltd's

HDFC Ltd’s net profit increased 20 per cent year on year (YoY) to Rs 4,425 crore in the fiscal quarter ended March 2023 (Q4 FY23) on strong net interest income (NII).

The mortgage lender’s net profit increased by 18 per cent in FY23 to Rs 16,239 crore, up from Rs 13,742 crore in FY22.

In a statement with the BSE, HDFC’s board declared an interim dividend of Rs 44 per equity share (with face value of Rs 2 each) for FY23. Net interest income (NII) increased by 16 per centyear on year to Rs 5,321 crore in Q4 FY23, from Rs 4,601 crore the previous year.

According to HDFC, the interest rate environment in FY23 was turbulent. The NII was affected by monetary policy and interest rate changes. Despite an increase in lending rates, there has been a transmission lag between the increase in borrowing costs and asset repricing.

HDFC had its largest monthly individual payouts ever in 2023. Assets under management (AUM) increased by 10.71 per cent to Rs 7,23,988 crore at the end of March 2023, up from Rs 6,53,902 crore the previous year. Individual loans accounted for 83 per cent of total AUM.

Individual loan average size was Rs 0.36 crore in FY23, up from Rs 0.33 crore the previous year. Gross non-performing assets were 1.18 per cent at the end of March 2023, down from 1.91 per cent the previous year.

At the end of March 2023, the capital adequacy ratio of Housing Development Finance Corporation Ltd (HDFC) was 24.3 per cent, with Tier I capital accounting for 23.8 per cent and Tier II capital accounting for 0.5 per cent.

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