The second biggest pure-play mortgage lender LIC Housing Finance Net Profit Rises 23% in the Second Quarter at Rs 305 crore for the three months period ending September.
LIC Housing, slumped sharply lower on Wednesday, clocking its worst fall in more than two years. Market participants seem to be disappointed with the 23% on-year growth in net profit at Rs 305 crore, sinking the stock for a fourth day on heavy volumes.
The subsidiary of the country’s largest insurer LIC said its net interest income for the quarter declined marginally (80 basis points) to Rs 1,163 crore from Rs 1,173 crore, but the management did not give any reason for the same.
Individual loan disbursements declined marginally to Rs 14,300 crore from Rs 14,330 crore in the reporting quarter, taking total disbursements to Rs 16,786 crore up 4% from Rs 16,110 crore, led by a 15% increase in project loans at Rs 407 crore from Rs 353 crore. This pushed the total outstanding loan portfolio up 10% at Rs 2,62,336 crore, helping the company earn 8% more in revenue from operations at Rs 5,086 crore from Rs 4,708 crore.
Of the total loan outstanding, individual loans stood at Rs 2,16,771 crore up 15% from Rs 1,88,348 crore.
The key profitability metric, net interest margin — the difference between what it earns from lending and what it spends in cost of funds — stood at 1.80%, down from 2% a year ago.
The stage 3 exposure on default declined to 4.90% from 5.14% in September 2021 and 4.96% in June.
What did the officials say?
The managing director and chief executive of the company, Y Viswanatha Gowd, said that the positive consumer sentiment has resulted in an uptick in demand for residential properties led by the affordable housing segment despite the rising inflationary trends and increasing interest rates.
The LIC Housing counter declined over 1% to Rs 400.40 on the BSE, while the benchmark Sensex rose over 65 basis points, continuing the rally for the fourth day.
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