For 2Q FY 2012, LICHF (LIC Housing Finance) reported a sharp 58% drop in its net
profit to Rs. 98 cr on account of one off regulatory provisions (of Rs.205 cr) pursuant to
recent change in provisioning requirements on standard assets.
Excluding these one-off provisions, the bottom line was better than our expectation. NII growth was
moderate at 10% yoy to Rs. 334 cr. Reported NIM for the quarter declined by 0.33%
qoq to 2.45%. Disbursements to individuals registered healthy growth of 24% yoy;
while that to developers fell sharply by 65% yoy (on account of management’s
conscious strategy). Overall outstanding loan portfolio grew by healthy 29% yoy to
Rs. 56,098 cr. On the asset-quality front, gross and net NPA ratios improved further.
Gross NPA ratio improved to 0.64% from 0.84% as of 1Q FY 2012 and net NPA
ratio improved to 0.12% as compared to 0.35% as of 1Q FY 2012. The stock is
trading at 1.7x FY2013E ABV.
We maintain our Neutral stance on the stock.
Review by Angel Broking
profit to Rs. 98 cr on account of one off regulatory provisions (of Rs.205 cr) pursuant to
recent change in provisioning requirements on standard assets.
Excluding these one-off provisions, the bottom line was better than our expectation. NII growth was
moderate at 10% yoy to Rs. 334 cr. Reported NIM for the quarter declined by 0.33%
qoq to 2.45%. Disbursements to individuals registered healthy growth of 24% yoy;
while that to developers fell sharply by 65% yoy (on account of management’s
conscious strategy). Overall outstanding loan portfolio grew by healthy 29% yoy to
Rs. 56,098 cr. On the asset-quality front, gross and net NPA ratios improved further.
Gross NPA ratio improved to 0.64% from 0.84% as of 1Q FY 2012 and net NPA
ratio improved to 0.12% as compared to 0.35% as of 1Q FY 2012. The stock is
trading at 1.7x FY2013E ABV.
We maintain our Neutral stance on the stock.
Review by Angel Broking
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