The company has reported a 15.8-per cent increase in its net profit for the quarter ended 31 March 2003; the net profit stood at Rs 239.19 crore, with the net profit for the fourth quarter of the previous year at Rs 206.45 crore. The gross profit (after interest but before depreciation and taxation) increased 18.9 per cent to Rs 300.83 crore from Rs 252.99 crore.

The income from operations increased 9.2 per cent to Rs 789.17 crore (Rs 722.63 crore). The net profit for 2002-03 increased 19 per cent, to Rs 690.29 crore from Rs 580.01 crore, while the income from operations increased 10.2 per cent to Rs 2,967 crore (Rs 2,692.41 crore).

The rise in net profit during the year was attributed to an increase in the individual housing loan business of the company as well as the higher spreads achieved during the year, compared to the previous year.

"Our spread this year has been around 2.15 per cent as compared to 1.96 per cent the previous year," says a senior HDFC official. "Financing costs are going down much faster than lending rates."