HDFC Ltd Q1FY18 earnings: In line quarter; Higher tax outgo leads to miss on reported profits

Posted by: at 7/26/2017 03:28:00 am
HDFC Ltd Q1FY18 earnings: In line quarter; Higher tax outgo leads to miss on reported profits  

** Net interest income +16% yoy (-9% qoq) to Rs25.85bn
** Net operating income -17% yoy (-17% qoq) to Rs26.97bn – due to lower profit on sale of investments as the company had sold its stake in HDFC ERGO in Q1FY17   
** Opex +12% yoy (+33% qoq)
** PPOP -19% yoy (-20% qoq) to Rs24.6bn – Core PPOP (ex-trading gains and dividend income) grew 16% yoy  
** Provisions -75% yoy at Rs850mn
** Tax rate came in at 34% vs 30% expected  
** PAT -16% yoy (-23% qoq) to Rs15.7bn – lower than expectations, adjusted for the tax rate PAT was in line with expectations  
** GNPL and NNPL inched up to 1.12% from 0.79% in Q4FY17 – Corporate GNPL stood at 2.09% vs 1.16% in Q4FY17 and 1.1% in Q1FY17 – this could include one lumpy exposure owned by the company     
** AUMs grew 18% yoy to Rs3.55trillion / Individual loans (ex-sell down) grew 16% yoy to Rs2.15trillion / Corporate loans grew 22% yoy to Rs0.98trillion

We currently have a HOLD rating on the stock with a target price of Rs1,528

HDFC Ltd Q1FY18 earnings: In line quarter; Higher tax outgo leads to miss on reported profits







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