Key Takeaways:
- Surging Profitability: Net profit jumped 41.4% to ₹750.6 crore, fueled by a healthy 8.2% interest margin.
- Expanding Loan Portfolio: Assets under management reached ₹1.19 lakh crore, supported by a 23-million-strong customer base.
- Aggressive Capital Strategy: The board approved a ₹2 dividend and a massive ₹32,825 crore debt fundraising plan.
HDB Financial Services reports a 41.4% rise in fourth-quarter net profit to ₹750.6 crore, driven by higher lending income, margin expansion and growth in its loan book, while the board also recommends a final dividend of ₹2 per share.
The non-banking financial company says net profit for the quarter ended March 31 rises from ₹530.9 crore a year earlier. Net interest income climbs 21.6% to ₹2,399 crore from ₹1,973 crore in the same quarter last year.
Net interest margin expands to 8.2% during the March quarter from 7.6% a year earlier, reflecting improved profitability in its lending operations.
“HDB Financial Services delivers healthy growth across profit, loan book and customer franchise in the fourth quarter,” the company says in its earnings statement.
Net Interest Income And Margins Show Strong Growth
The company posts net total income of ₹3,063 crore for the March quarter, up 17.1% from ₹2,616 crore in the year-ago period.
Annualised return on assets stands at 2.48% in the fourth quarter and 2.19% for the full financial year ended March 31.
Disbursements during the quarter total ₹19,922 crore, up 12.9% from a year earlier and 11.2% from the previous quarter.
Shares of HDB Financial Services close 4.8% higher at ₹644.30 on the National Stock Exchange on Wednesday, ahead of the earnings announcement.
Loan Book, Assets Under Management Expand
The company’s gross loan book grows 10.9% year over year to ₹1.18 lakh crore as of March 31, compared with ₹1.07 lakh crore a year earlier.
Assets under management rise 10.7% to ₹1.19 lakh crore from ₹1.07 lakh crore in the same period last year.
The company says its gross loan book mix consists of asset finance and enterprise lending at 38% each, while consumer finance accounts for 24%.
Its customer base reaches 22.9 million, rising 19.7% from a year earlier and 4.3% from the previous quarter.
“The customer franchise continues to expand steadily across lending segments,” the company says.
Board Approves Dividend And Debt Fundraising Plan
The board recommends a final dividend of ₹2 per equity share with a face value of ₹10 for the financial year ended March 31. The dividend remains subject to shareholder approval at the company’s upcoming annual general meeting.
The board also approves plans to raise to ₹32,824.72 crore through debt securities issued on a private placement basis in one or more tranches. The amount includes renewal approval of ₹31,974.72 crore and fresh approval of ₹850 crore.
HDB Financial Services has a market capitalisation of ₹53,684.81 crore as of Wednesday, according to exchange data.
