LIC Housing Finance posts 38% decline in Q3 net profit at Rs 480.3 crore

Mortgage lender LIC Housing Finance Ltd (LICHFL) on Monday reported a 37.4 percent year-on-year (YoY) decline in net profit at Rs 480.3 crore for the third quarter ended December 31, 2022.

In the corresponding quarter last year, the company posted a net profit of Rs 767.3 crore. CNBC-TV18 Polls had predicted a profit of Rs 728.7 crore for the quarter under review.

During the quarter, the net interest income (NII) jumped by 10.4 percent to Rs 1,605.9 crore gainst Rs 1,454.6 crore in the corresponding period of the preceding fiscal. CNBC-TV18 Polls had predicted a net interest income of Rs 1,525.1 crore for the quarter under review.

"Net profit after tax stood at Rs 480.30 crore compared with Rs 767.33 crore during the same period in the previous year," LICHFL said.

The company's revenue from operations in the third quarter of 2022-23 was at Rs 5,871 crore, an increase of 16 per cent compared to Rs 5,054 crore in the same period a year ago. The expenses during the quarter under review stood at Rs 5,283 crore, up from Rs 4,108.54 crore in the corresponding period a year ago.

"After two years of pandemic-induced restrains, enthusiasm among home buyers remained upbeat. Rising interest rates and inflationary trends continued to put upward pressure on home prices in many regions. Asset quality remained stable with an improving trend and margins expanded q-o-q," Y Viswanatha Gowd, MD and CEO of LIC Housing Finance, said.

The company's total disbursements were Rs 16,100 crore in the third quarter of 2022-23 as against Rs 17,770 crore for the corresponding period in 2021-22. Out of the total amount, disbursement in the individual home loan segment stood at Rs 13,580 crore as against Rs 15,341 crore in the comparable period of the last fiscal. Project loans were at Rs 427 crore compared with Rs 293 crore for the same quarter in the previous year.

LICHFL said the individual home loan portfolio stood at Rs 2,23,064 crore in the latest December quarter as against Rs 1,95,901 crore in the same period of the last fiscal. Project loan portfolio stood at Rs 10,857 crore as against Rs 14,091 crore as on December 31, 2021.

Further, the housing finance company said its total outstanding portfolio grew 10 percent to Rs 2,68,444 crore in the three months ended December 2022 from Rs 2,43,412 crore in the year-ago period. During the nine months ended December 2022, total disbursements stood at Rs 48,088 crore. It was up 13 percent compared to Rs 42,532 crore in the same period a year ago.