Housing finance major HDFC has reported fourth quarter and full year results which are in line with market expectations.
Standalone profits for the quarter ended 31 March 2006, increased 22.64 per cent to Rs426.52 crore, or Rs16.07 per share, from Rs347.79 crore, or Rs13.85 per share, for the previous year quarter. Total income for the quarter went up by 34.28 per cent to Rs721.28 crore from Rs537.16 crore.
Pressure of rising interest rates was clearly visible during the quarter as interest costs went up by 34.39 per cent as compared to the previous year quarter. Gross interest income increased by 29.78 per cent, limiting the increase in net interest income to 24.59 per cent.
Operating profits for the quarter increased by 23.95 per cent, helped by a lower than expected 4.83 per cent growth in staff costs. Other expenses jumped 55.67 per cent.
For the full year 2005-06, standalone profits increased 21.29 per cent to Rs1,257.3 crore, or Rs48.44 per share, from Rs1,036.59 crore, or Rs41.44 per share, for the previous year. Total income increased 25.46 per cent to Rs4,278.39 crore from Rs3,410.08 crore.
Total interest income increased by 25.43 per cent during the year while rising interest rates led to a 27.14 per cent jump in interest costs. Net interest income for the year increased by 23.12 per cent.
Operating profits for the year increased 23.47 per cent during the year. Staff costs went up by 23.79 per cent while other expenses increased at a lower 18.73 per cent. Other income for the full year increased 35.55 per cent to Rs12.85 crore.
Consolidated net profits of HDFC group for the full year 2005-06 increased 21.33 per cent to Rs1,349.15 crore from Rs1,112 crore for the previous year. Consolidated income increased 26.15 per cent to Rs4,649.25 crore from Rs3,685.6 crore for the previous year.