LIC Housing Finance Q4 - Healthy Growth In Disbursements; Asset Quality Surprises Negatively: Motilal Oswal
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Motilal Oswal Report
LIC Housing Finance Ltd.'s profit after tax fell 5% YoY (49% miss) to Rs 3.9 billion in Q4 FY21.
While pre provision operating profit of Rs 13.4 billion was ~11% above our estimate, elevated credit costs of Rs 9.8 billion (our estimate: Rs 2.2 billion) resulted in this large profit after tax miss.
Profit after tax grew 14% YoY to Rs 27 billion in FY21, led by ~10% growth in operating profit.
The company delivered strong QoQ growth in home loans, while collection efficiency remained stable sequentially at 98% in March 2021.
Asset quality surprised negatively with a sharp rise (up 62% QoQ) in gross stage-III to Rs 96 billion.
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