HDFC Q1 profit falls 5% YoY to Rs 3,051.5 crore, Board approves to raise Rs 45K crore
Non-banking financial heavyweight HDFC, Thursday reported a standalone net profit of Rs 3,051.52 crore for June quarter of FY21 (Q1FY21), clocking a 4.7 per cent year-on-year (YoY) de-growth from Rs 3,203.1 crore-profit reported in Q1FY20. Sequentially, the profit grew 36.68 per cent from Rs 2,232.5 crore reported in the March quarter of FY20.
The management in a statement said that “During the quarter, the corporation sold 26 million equity shares of HDFC Life, resulting in a pre-tax gain of Rs 1,241.20 crore. The profit from the sale of investments was Rs 2.45 crore in the March quarter of FY20.
Consolidated HDFC bank’s consolidated net profit was Rs 4,058.53 crore. It has improved 14.6 per cent on a yearly basis from Rs 3,540 crore reported in Q1 FY20.
The non-bank finance company’s (NBFC) revenue from operations is Rs 13,017.68 crore for the quarter under review. It was Rs 12,990.29 crore in the previous year quarter. In Q4FY20, the same was Rs 11,975.72 crore, which translates into an 8.7 per cent sequential growth.
Including other income, the total income came in at Rs 13,019.29 crore, up just 0.01 per cent from Rs 12,996.11 crore reported in Q1FY20.
“In view of the uncertain environment on liquidity, created due to Covid-19, the corporation has been carrying higher levels of investment in liquid mutual funds since the announcement of the lockdown. The amount invested in such mutual funds as of June 30, 2020, was Rs 30,820 crore. This is significantly higher than the amount invested in the previous-year quarter,” the management said in a statement.
The board of HDFC approved to raise funds up to Rs 45,000 crore through issuance of secured redeemable, non-convertible debentures on private placement basis.
The stock declined sharply after the result announcement. The stock ended was trading 3.64 per cent lower at Rs 1,811 apiece on the BSE as against 335 points, or 0.88 per cent, the decline in the S&P BSE Sensex at 37,736 level. The stock touched an intra-day high and low of Rs 1,900 and Rs 1,807, respectively.