LIC Housing Finance Q4 - Healthy Growth In Disbursements; Asset Quality Surprises Negatively: Motilal Oswal

Residential buildings stand at the housing complex in Noida, Uttar Pradesh, India. (Photographer: Anindito Mukherjee/Bloomberg)

LIC Housing Finance Q4 - Healthy Growth In Disbursements; Asset Quality Surprises Negatively: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

Motilal Oswal LIC Housing Finance Q4FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.