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* Summaries created by AI. Please verify by checking the actual call transcript.
Communication Overview • HDFC communicated earnings call transcript to BSE and NSE on May 8, 2023. • Call discussed audited financial results for the year ending March 31, 2023. • No unpublished price-sensitive information was disclosed. • Audio recording available on HDFC's website.
Economic and Performance Highlights • Monetary Policy Impact: Repo rate raised by 25 basis points to manage inflation. • Loan Growth: • 17% growth in individual loan book. • Record monthly disbursements in March 2023. • Asset Quality: • Significant decrease in non-performing assets (NPAs). • Total Assets Under Management (AUM) rose by 11% to Rs 7.24 lakh crore. • Strong collection efficiency over 99%.
Financial Results • Q4 Standalone Profit: • Rs 4,426 crores, a 20% increase from the previous year. • Annual Profit: • Standalone profit after tax rose 18% to Rs 16,239 crores. • Consolidated profit after tax for the year was Rs 27,700 crores, a 15% growth. • Dividend: Interim dividend declared at Rs 44 per share, up from Rs 30.
Merger and Corporate Strategy • Progressing with merger with HDFC Bank, expected effective date around July 2023. • Focus on CSR activities in healthcare, education, and environmental sustainability.
Q&A Session Insights • Warrants and Merger: Warrant holders will receive HDFC Bank shares based on an exchange ratio. • Liquidity Coverage Ratio (LCR): Currently at 128%, expected to fluctuate post-merger. • Loan Maturities: Monthly maturities estimated between Rs 10,000 to Rs 15,000 crores. • Interest Rate Management: Strategies involving swaps and benchmark-linked liabilities discussed.
Operational Updates • Digital Onboarding: 94% of new loans digitally onboarded. • Employee Costs: Decrease in ESOP-related costs to Rs 205 crores from Rs 390 crores. • Funding Strategy: Shift towards individual deposits over corporate deposits.
Conclusion • HDFC remains optimistic about growth despite interest rate fluctuations. • The call concluded with an invitation for further questions regarding results or merger processes.
HDFC Earnings Call Summary (February 2, 2023)
Earnings Call Overview • Date: February 2, 2023 • Communication to BSE and NSE on February 6, 2023 • No unpublished price-sensitive information shared • Key executives present, including Vice Chairman and CEO Mr. Keki M. Mistry • Conducted in listen-only mode with a Q&A session
Financial Highlights • Interest Rates and Income • Monetary Policy Committee raised policy repo rate • Short-term impact on Net Interest Income (NII) • NII grew by 13% year-over-year; Net Interest Margin (NIM) improved to 3.5%
• Loan Growth • Individual loan book grew by 18% • Approvals and disbursements increased by 21% and 23%, respectively • Digital channels accounted for 94% of new loan applications
• Asset Management • Total Assets Under Management: Rs 7,01,485 crores (13% growth) • Improved asset quality with gross non-performing loans at 1.49%
Credit Loss and Provisions • Provision under Expected Credit Loss (ECL) model: Rs 13,274 crores • Total Exposure At Default (EAD): Rs 6,01,765 crores • ECL to EAD coverage ratios: 25% for Stage 2, 56% for Stage 3 • Annualized credit cost for Q3: 22 basis points
Capital and Borrowings • Capital adequacy ratio: 23.7% • Tier I capital: 23.2% • Total borrowings: Rs 5,43,664 crores • Retail deposits: 70% of total deposits, reflecting 14% growth
Investment and Profitability • Held Rs 56,000 crores in government securities and liquid funds • Profit before tax for nine months: Rs 14,616 crores (16% increase) • Dividend income: Rs 2,528 crores over nine months • Cost-income ratio increased to 9.5%
Merger and CSR Efforts • Merger with HDFC Bank progressing with shareholder approval • CSR spend: Rs 161 crores focused on healthcare, education, and sustainability
Q&A Session Insights • Retail deposits increased by ₹13,000 crores; net retail deposit accretion for Q3: ₹5,750 crores • Concerns raised about corporate loan book decline and mortgage growth outlook • Clarifications on restructured loan book and priority sector lending • Positive outlook for housing demand and loan growth anticipated
Conclusion • HDFC Limited remains focused on affordable housing and strong credit quality amidst economic challenges, with a positive outlook for future growth.