HDFC Q4 preview: NBFC may post better NII growth, asset quality metrics likely stable; key highlights here

It needs to be noted that HDFC has already announced its business performance for the January-March 2023 period earlier last month.

In Q4FY23, the company assigned individual loans amounting to ₹9,340 crore compared to ₹8,367 crore in the corresponding quarter of the previous year. Individual loans sold in the preceding 12 months stood at ₹36,910 crore.

Further, in Q4, the company saw gross income from dividends to the tune of ₹207 crore. Net gain on fair value changes through the statement of profit and loss for the quarter was at ₹269 crore.

What will be HDFC’s financial report in Q4FY23?

In its preview note, ICICI Direct said, “HDFC Ltd is expected to witness loan growth of ~15% YoY to ₹6,51,060 crore, led by healthy demand for home loans. Hence, growth in NII is to be seen at 15% YoY to ₹5,024 crore. NIMs to remain largely steady despite competitive intensity. Provisions to decline marginally YoY at ₹391 crore leading to standalone profit growth of 6.3% YoY (4.8% growth QoQ) to ~ ₹3868 crore. Subsidiaries are expected to report a steady performance.”

That being said, the brokerage expects HDFC to post a NII of ₹5,024.1 crore up by 15% YoY and 3.8% QoQ. While PAT is seen at ₹3,868.3 crore recording a single-digit growth of 4.5% YoY and 4.8% QoQ.

According to Prabhudas Lilladher, HDFC is expected to see a stable quarter-on-earnings led by better NII growth at 4.9% QoQ and 10.4% YoY. While asset quality metrics would remain steady with GNPA at 1.80%, credit costs would be <0.25%.

During Q3FY23, HDFC posted a 13% YoY rise in net profit to ₹3,691 crore as compared to ₹3,260 crore in the year-ago quarter. NII stood at ₹4,840 crore compared to ₹4,284 crore in the previous year, registering a growth of 13%.

As of December 31, 2022, the assets under management (AUM) stood at ₹7,01,485 crore as against ₹6,18,917 crore in the previous year and individual loans comprise 82% of the AUM.

On Wednesday, HDFC’s stock price ended at ₹2,788.70 apiece marginally down from the previous session on BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.