LIC Housing Finance Q1 FY23 Results: Profit goes up by 503% at Rs 925 cr

New Delhi: India's one of the largest Housing Finance Mortgage loan companies reported a six-fold profit of over 503 % up at Rs 925.48 crore in the First Quarter of the current Financial Year compared with Rs 153.44 crore during the same period in the previous year. 

LIC's subsidiary LIC HFL Company's total disbursements were at Rs. 15201 crore in Q1 FY 2023, as against Rs. 8652 crore for the corresponding period in Q1 FY2022, a growth of 76%.

Out of this, disbursements in the Individual Home Loan segment were at Rs. 13131 crore against Rs 7650 crore in Q1 FY2022, a growth of 72%. Project loans were at Rs. 309 crore compared with Rs 237 crore for the same quarter in previous year. The company's total revenue from operations grew to Rs. 5285.46 crore as against Rs. 4857.11 crore in Q1 FY2022, a growth of 9 %.

Net Interest Income (NII) rose by 26% to Rs 1610.19 crore, as against Rs 1275.31 crore for the same period in the previous year. Net Interest Margin (NIM) for the quarter stood at 2.54 % as against 2.20% for Q1 FY 2022.

Profit Before Tax for the quarter was Rs. 1140.36 crore as against Rs 192.93 crs in Q1 FY 2022, a growth of 491%.

The Individual Home Loan portfolio stood at Rs 209599 crore, as against Rs. 182055 crore as on June 30, 2021, up by 15 %. The Project loan portfolio stood at Rs. 12443 crore as on June 30, 2022, as against Rs 15601 crore on the same date last year. The total outstanding loan portfolio grew 10% to Rs. 255712 crore from Rs 232548 crs in the earlier year.

Under IndAS 16, asset classification and provisioning changes for future credit loss are reported on an Expected Credit Loss (ECL) basis.

As per the same methodology, the provisions for ECL stood at Rs. 6141.03 crs as on June 30, 2022, as against Rs 4727.02 crs as on June 30, 2021. The Stage 3 Exposure at Default as of June 30, 2022, stood at 4.96% against 5.93 % as of June 30, 2021.

Shri Y. Viswanatha Gowd, Managing Director & Chief Executive Officer LIC Housing Finance Limited said "With the easing of pandemic and better economic activity, there was an overall improvement in our segment. The hybrid work model has been widely accepted across the country, resulting in higher demand for better, larger residential units. This market trend assisted us with higher disbursements and improved financial performance during the current quarter. Our ongoing digital transformation initiatives continues to add value and bring in higher efficiency. In the current quarter, around 20% of disbursements were initiated through our HomY App. This has helped our company to have better penetration among younger home loan borrowers."