LIC Housing posts strong bottom-line in Q4FY18

LIC Housing Finance company, which is one of the country’s largest HFC reported stellar performance in the quarter ended March 2018. The lower provisioning in the quarter aided in increasing profitability.

The total income of the company grew by 7.1 per cent yoy and 4 per cent qoq to Rs. 3,900 crore in Q4FY18 vs Rs. 3,642 crore in Q4FY17. The NII for the quarter rose by 14.5 per cent qoq and declined 1.4 per cent yoy. The interest expended for the quarter grew by 10.1 per cent yoy which led to lower NII.

The provisioning of the company declined substantially over the previous year and quarter. The provisions declined by 68.5 per cent yoy and 42.1 per cent qoq to Rs. 28.13 crore in Q4FY18 and Rs. 89.2 crore. in Q4FY18.

The resultant net profit for the quarter rose by 1.9 per cent yoy and 9.8 per cent qoq to Rs. 539 crore in Q4FY18 vs Rs. 529 crore in Q4FY17 and Rs. 491 crore in previous year.

On full year basis, the revenue grew in single digits by 7 per cent yoy and provisions also remain elevated at Rs. 345 crore in FY18 vs Rs. 310 crore in FY17. The bottom-line also grew minimally by 3 per cent yoy to Rs. 1,989 crore in FY18 vs Rs. 1,931 crore in FY17.

The board also approved the dividend of Rs. 6.8 per share at face value of Rs. 2 per share. The stock opened negative at Rs. 543.5 per share and currently trading at Rs. 545 per share at 10:04 hours.