HDFC Q4 FY23 Results: Profit Grows 20% at Rs 4,425 cr

Mumbai/New Delhi: Housing Development Finance Corporation, one of India's leading housing finance companies has posted the financial results for the quarter that ended 31st March 2023. The Board of Directors of Housing Development Finance Corporation Limited (HDFC) approved the standalone and consolidated audited financial results for the quarter and year ended March 31, 2023, at its meeting held on Thursday, May 4, 2023, in Mumbai. 

HDFC Q4 PERFORMANCE HIGHLIGHTS

• 20% growth in the Profit After Tax for the quarter that ended March 31, 2023, at 4,425 crore
• 18% growth in the Profit After Tax for the year ended March 31, 2023, at 16,239 crore
• The Board declared an interim dividend of Rs 44 per equity share
• Assets Under Management stood at over 7.2 lac crore
• 24% growth in the individual loan book (after adding back loans sold in the preceding 12 months)
• Significant improvement in asset quality; Annualised credit costs for the quarter ended March 31, 2023 at 25 basis points
• NIM at 3.6%; Spreads at 2.29%
• Capital Adequacy at 24.3%; Tier 1 Capital at 23.8% 

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HDFC Q4 FINANCIAL RESULTS

Financials for the quarter ended March 31, 2023

The profit before tax for the quarter ended March 31, 2023 stood at Rs 5,398 crore compared to Rs 4,622 crore in the corresponding quarter of the previous year. After providing Rs 973 crore for tax, the reported profit after tax stood at Rs 4,425 crore compared to Rs 3,700 crore in the corresponding quarter of the previous year, representing a growth of 20%.

Financials for year ended March 31, 2023

Some of the financials for the year ended March 31, 2023 are not directly comparable with that of the previous year.
• On account of volatile equity markets, the net gain on investments fair valued through the profit and loss account was significantly lower at ? 362 crore (PY: Rs 938 crore)
• Dividend income: Rs 2,735 crore (PY: Rs 1,511 crore)
• The profit on sale of investments: Rs 184 crore (PY: Rs 263 crore)
• Non-interest expenses were higher largely due to an increase in expenses on staffing, information technology and one-time merger related expenses incurred during the year.

The profit before tax for the year ended March 31, 2023 stood at Rs 20,014 crore compared to Rs 17,246 crore in the previous year. After providing for tax of Rs 3,775 crore (previous year: Rs 3,504 crore), the profit after tax for the year ended March 31, 2023 stood at Rs 16,239 crore compared to Rs 13,742 crore in the previous year, representing a growth of 18%.

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HDFC ANNOUNCED DIVIDEND

The Board of Directors declared an interim dividend for the year ended March 31, 2023 of Rs 44 per equity share of face value of Rs 2 each compared to a final dividend of Rs 30 per
equity share in the previous year. No final dividend was declared for the year ended March 31, 2023.

The record date for determining the shareholders entitled to interim dividend for the year ended March 31, 2023 shall be Tuesday, May 16, 2023. The interim dividend shall be paid from Thursday, June 1, 2023 onwards. The dividend pay-out ratio is 49.7%.

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