HDFC Q2 revenue: HDFC Q2 internet revenue up 18% on sturdy retail demand

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MUMBAI: Housing Growth Finance Corp (HDFC) stated its internet revenue grew 18% on account of continued demand for residence loans from particular person debtors.

Web revenue rose to ₹4,454 crore for the quarter ended September 2022 as in opposition to ₹3,781 crore within the corresponding quarter of the earlier 12 months.

The agency’s complete debt e-book stood at ₹6.90 lakh crore on the finish of September 2022, up 16% from ₹5.97 lakh crore a 12 months in the past. Private loans comprised 81% of the corporate’s mortgage e-book. At 20%, these loans expanded quicker than the remainder of the mortgage e-book.

CEO Keki Mistry stated the demand for houses is powerful in contrast to pre-Covid, with even metro cities now contributing to credit score development. Consequently, the common ticket measurement for the mortgage has additionally elevated from ₹33.10 lakh a 12 months in the past to ₹35.70 lakh.

Within the first half of the present monetary 12 months, particular person approvals and disbursements grew by 35% and 36%, respectively, over the corresponding interval of the earlier 12 months.

“House mortgage demand continues to be sturdy. Development in residence loans was seen in each the mid-income section and high-end properties,” the corporate stated.

Complete non-performing property (NPAs) declined to 1.44% from 2.00% a 12 months in the past. Complete NPAs from private loans stood at 0.91% on the finish of September, whereas non-personal loans stood at 3.99%. Development finance now includes 9% of the agency’s mortgage e-book, up from about 14% 4 years in the past.

Analysts stated although the corporate has finished nicely, its merger is crucial occasion that buyers are watching.

“The market place of HDFC with wholesome demand outlook and robust fundamentals augurs nicely. The margin trajectory stays to be seen. Nevertheless, uncertainty associated to the merger is anticipated to maintain the value in a variety,”

Retail arm ICICIDirect stated in a post-earnings observe.

The unfold of debt over value of borrowing was 2.28% for the half-year ended September 30, 2022 – a slight change from the two.29% reported a 12 months in the past. Mistry stated the corporate expects enchancment in its margins because the burden of hike in rates of interest is being handed on to the purchasers.

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