Housing Development Finance Corporation Limited (HDFC) on Tuesday reported 65% decline in net profit at ?2,926 crore for the quarter ending 31 December, 2020. It was ?8,372 crore in the year-ago period.
Sequentially, the profit grew 2% from ?2,870 crore clocked in Q2FY21.
Revenue from operations fell 42% to ?11,707 crore as against ?20,285 crore in December 2019.
However, the company said the results are not directly comparable with year-ago period.
“To facilitate a like-for-like comparison, after adjusting profit on sale of investments and dividend, fair value adjustments and income on loans assigned, fair value gain consequent to the merger of GRUH with Bandhan Bank, employee stock options charge and provisioning, the adjusted profit before tax for the nine months ended December 31, 2020 is ?10,050 crore compared to ? 8,287 crore in the previous year, reflecting a growth of 21%,” said HDFC in a stock exchange filing.
“The demand for home loans continued to remain strong owing to low interest rates, softer property prices, concessional stamp duty rates in certain states and continued fiscal incentives on home loans. The month of December 2020 witnessed the highest ever levels in terms of receipts, approvals and disbursements. During the quarter ended 31 December, 2020, 91% of individual disbursements entailed property deals entered over the past four months, re-affirming that housing demand remains robust and is not pent-up demand,” the company said.
“The COVID-19 induced pandemic has given a strong fillip to various digitalisation initiatives offered by the Corporation. Despite the easing of lockdown restrictions, the trend of digital on-boarding of customers continued. Approximately 81% of new employed borrowers opted for the digital mode. During the quarter ended December 31, 2020, individual loan disbursements grew at 26% over the corresponding quarter of the previous year. Growth in home loans was seen in both, the affordable housing segment as well as high-end properties,” HDFC further said.
At 2:40 pm on Tuesday, the company’s scrip on NSE was trading 5.3% higher at ?2,717.
News Source:- Livemint.com