Mumbai: The Housing Development Finance Corporation (HDFC) has come out with its quarterly results with its performance intact in line with the street expectations.
HDFC posted an increase of 20.03 per cent in net profit at Rs 296.82 crore for the quarter ended June 30 as compared to Rs 247.28 crore for the corresponding quarter in 2005-06.
The total income increased 33.56 per cent to Rs 1,248.53 crore for the first quarter of 2006-07 from Rs 934.76 crore in the same quarter in 2005-06, HDFC informed the Bombay Stock Exchange.
The principal activities of the group are providing housing finance to individuals and lease finance facilities to corporate sector for plant and machinery, energy generation and other assets.
In spite of high real estate prices as well as rising interest rates, HDFC’s loan sanctions and disbursements have gone up 30 per cent and 28 per cent, respectively, in the last quarter over the June 2005 quarter.
HDFC had increased home loan interest rates last quarter. Despite its results being in line with analyst estimates, the HDFC stock fell 1.55 per cent on Tuesday. Since the beginning of 2006, the HDFC stock has declined 11.6 per cent, while the Sensex has moved up 8.8 per cent, indicating that the market is worried about future growth.
The HDFC management has voiced concern over the ‘vertigo’ in house prices and expect them to correct gradually. Interest rates, too, are likely to go up further, but HDFC should be able to grow its loans at over 25 per cent.
The shares of the company were trading at Rs 1,067.35, down 1.36 per cent at the BSE.
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