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HDFC Limited Q4FY21 Result Analysis | Yadnya Investment Academy

HDFC Limited Q4FY21 Result Analysis | Yadnya Investment Academy

Published on 11 May 2021 Views 105 Comments 1

In this blog, we will be talking about HDFC stock’s Q4 FY21 results and will do a brief analysis of the quarterly result of HDFC Limited for the quarter ended 31st March 2021.

Introduction:

HDFC LTD is India’s leading housing finance company, which offers a wide range of loan products. The company has announced its Q4FY21 results on Friday 7th May 2021. The company has posted a decent quarterly performance in the last quarter of FY21. Let’s analyze some key highlights of the quarterly result of HDFC Limited.

 HDFC- Q4FY21Result :

  • The standalone business of HDFC i.e. only from its Housing Finance business has seen the growth of profit of 42% YoY in this quarter to Rs. 3,180 Cr. from Rs. 2,232 Cr. in Q4FY20.
  • As per the operational revenue numbers, it has gone down by 2% YoY. This year it was Rs 11600 Cr. in Q4FY21 compared to Q4FY20 which was Rs. 11900 Cr.
  • The interest cost or finance cost has drastically gone down about  15% – 16% from the last 1 year. Hence the revenue is same but the expenses have come down hence there is an increase in the profit. Hence operational efficiency has increased.
  • The company has also reported a growth of 19% in Individual Loans, which is quite a positive sign.
  • If we consider what cost is given for deposits and what cost is given for the loan we will see that difference will be around 2.29% as of 31st March 2021. That's the positive sign altogether. This being a finance company the net interest margins are around 3.5% YoY.
  • There is a 22.2% capital adequacy ratio at the end of the quarter which is also a good sign for the company.

HDFC Limited-Dividend:

  • The dividend given in this quarter is Rs 23 per equity share for the year ended 31st March 2021
  • Last year Rs 21 per equity share was given. Close to a 1% dividend yield has been provided this year.

HDFC Limited- Net Profit:

  • Standalone profit after tax of the company for the fiscal year 2021 is Rs 12,000 Cr. Last year the profit was Rs 17,000 Cr. the reason for such increase was because of the deal between GRUH Finance subsidiary of HDFC Limited had a deal with Bandhan Bank so there was a profit of Rs 9000 Cr.
  • There is a 30% increase in the consolidated Net Profit YoY and currently, it is standing at Rs  5350 Cr. in Q4FY21 this is also quite phenomenal.

Conclusion:

The operational efficiency that has increased that by the company that’s the positive sign also the stock has corrected itself from its 52 week high. This stock should also be on the radar. But one should invest only after proper research and study.

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