LIC Housing Finance's Q4 Net Profit Drops by 7.5% to Rs 1,091 Crore

LIC Housing Finance, a prominent mortgage financier backed by LIC, has disclosed its financial performance for the fourth quarter ending in March 2024. The company experienced a 7.5 per cent decrease in profit, recording Rs 1,091 crore compared to Rs 1,180 crore in the corresponding period the previous year. Despite this dip in profit, the firm saw an increase in total income, which rose to Rs 6,937 crore during the quarter under review from Rs 6,415 crore in the same quarter last year.

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The interest income of LIC Housing Finance also saw an upward trajectory, reaching Rs 6,888 crore as opposed to Rs 6,378 crore in the fourth quarter of the preceding year. A notable financial maneuver during this quarter was the reversal of a provision amounting to Rs 31.56 crore concerning Investment in Alternate Investment Funds (AIFs), following the RBI circular dated March 27, 2024.

On the front of asset quality, LIC Housing Finance reported significant improvement. The gross non-performing assets (NPAs) ratio was reduced to 3.31 per cent from 4.41 per cent at the end of March 2023. Similarly, the net NPA ratio saw a decline to 1.43 per cent from 2.5 per cent compared to March 2023. These figures indicate a robust enhancement in the company's asset quality over the year.

Annual Financial Highlights

For the financial year ended March 2024, LIC Housing Finance showcased an impressive performance with a 65 per cent surge in profit, amounting to Rs 4,765 crore against Rs 2,891 crore in the previous fiscal year. This remarkable growth underscores the company's strong operational efficiency and strategic financial management throughout the year.

In acknowledgment of its financial achievements and as a gesture of appreciation to its shareholders, the board of LIC Housing Finance has recommended a dividend of Rs 9 or 450 per cent of face value of Rs 2 each for the financial year 2023-2024. This move reflects the company's commitment to delivering value to its shareholders and its confidence in sustaining growth momentum going forward.

The financial outcomes reported by LIC Housing Finance for both the concluding quarter and the fiscal year highlight not only its resilience but also its capability to navigate through challenging market conditions while maintaining a focus on profitability and asset quality improvement.