The biggest mortgage lender in the country reported a 60.11 percent fall in its net profit for the third quarter of the financial year 2018-19 to Rs 2,113.80 crore. Housing Development Finance Corporation Limited (HDFC) had posted a net profit of Rs 5,263.21 crore in December 2017 ended quarter. It should be noted that the profit in the year ago period accounted for a one-time gain from its sale of investments.
In the October-December 2017 and July-September 2018 quarters the lender has sold shares of its subsidiaries like HDFC Life Insurance Co and HDFC Asset Management Co as a part of the IPO process, which made up for the one-time gains. As for quarter-on-quarter analysis, the net profit rose 14 percent from September 2018 ended quarter.
The lender's revenue from operations rose by 20.41 percent to Rs 10,450.40 crore in the October-December 2018 quarter as against Rs 8,678.73 crore in the year before. Its NII (net interest income) in the quarter under review increased by 16.6 percent to Rs 3,192 crore when compared to Rs 2,737 crore in December 2017.
HDFC Ltd made Rs 116 crore in provisions for expected credit losses, which is lower than the Rs 401 crore made in the previous quarter (September 2018) and Rs 1,765 crore a year ago.
Shares of HDFC Ltd was trading lower at Rs 1,909.90 a piece, down by 1.90 percent or Rs 37, after the results.