LIC Housing Finance Ltd. is one of the largest Housing Finance Mortgage loan companies in India having its Registered and Corporate office in Mumbai. LIC Housing Finance Ltd. is a subsidiary company of Life Insurance Corporation of India(LIC). The company has reported its Q4 FY 2023-24 results.
The total income increased to Rs.6,937 crores during the quarter against Rs.6,415 crores in Q4 FY 2022-23, The net profit in this quarter has declined 7.5% to Rs.1,091 crores, The net interest margins under this quarter stood at 3.15%.
The Asset quality of LIC HFL has significantly improved in this quarter, While the total disbursements were at Rs.18,232 crores in Q4 FY2024, as against Rs.16,027 crores for the corresponding period in FY 2023, up by 14%. Out of this, disbursements in the Individual Home Loan segment were at Rs.14,300 crores against Rs.12,406 crores in Q4 FY2023,up by 15%, whereas Project loans were at Rs.1,501 crores compared with Rs.1,554 crores in Q4 FY2023.
| Parameters | Q4 FY 2023-24 | Q4 FY 2022-23 | Change |
| Total Income | Rs.6,937 crores | Rs.6,415 crores | +8.1% |
| Gross NPA | 3.31% | 4.41% | -110 Bps |
| Net NPA | 1.43% | 2.5% | -107 Bps |
| Net Profits | Rs.1,091 crores | Rs.1,180 crores | -7.5% |
| Interest Income | Rs 6,888 crores | Rs.6,378 crore | +8% |
The board of LIC Housing Finance Ltd. has recommended a dividend of 450% on a face value of Rs.2 per share, In other words, the shareholders would get Rs.9 per share subject to the approval of this recommendation.
Speaking on the Q4 performance of the company, Shri. Tribhuwan Adhikari, Managing Director & Chief Executive Officer of LIC Housing Finance Ltd. said, “We have seen a healthy uptick across all home loan segments, especially during the latter half of the year. Our focus on reduction in NPA and control over cost of funds have enabled us to close the year with a record high margins and profits. In the coming year, we are confident of further improvement in all areas of operations.”
The stock of LIC Housing Finance Ltd. has given returns of more than 50% over the past year, The stock has given more than 14% returns in 2024 till now, The stock has closed down by -0.43%at Rs.631 a piece today before posting its earnings.
Conclusion: The company has reported a year-on-year decline in its net profit under this quarter, On the other hand, the asset quality of the company has improved on both Gross NPA and Net NPA frontiers. As the company has reported its results after market hours any reaction to these results will take place on Thursday. The stock has closed at Rs.631 a piece today.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: May 16, 2024, 9:29 AM IST
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