Mumbai: Mortgage major Housing Development and Finance Corp. Ltd (HDFC) reported a 76% rise in net profit for the second quarter of fiscal 2008 on the back of the sale of its shares in business process outsourcing firm Intelenet, which it jointly owned with UK-based bank Barclays Plc.
The company declared a net profit of Rs646.39 crore for quarter ended 30 September, against a net profit of Rs368.02 crore in the same quarter last year. HDFC sold its 50% stake in Intelenet to private equity firm, The Blackstone Group, for Rs313.26 crore in July.
Excluding the Intelenet sale, HDFC’s income rose by 23%, to Rs582.44 crore in the second quarter of the current fiscal. The company’s shares rose 9.63% to close on Monday at Rs1,281.3 a share on the Bombay Stock Exchange.
HDFC’s total income for the second quarter rose by 91% to Rs895.69 crore, from Rs470.11crore in the year-ago period. Income from its core mortgage business rose to Rs1,839.83 crore, from Rs1,286.93 crore from the year-ago quarter—a 42% increase. The company’s assets stood at Rs72,665 crore, against Rs56,496 crore for the same period last year—a 26% increase. Throughout the second quarter, HDFC offered a discounted rate of interest on new home loans, with interest rates dropping from 11.25% to 11%.
In October, the lender cut interest rates by a further 50 basis points for new loans, with rates touching 10.50%. The effect of the latest cut will be felt in the third quarter.
Loan disbursements for the quarter amounted to Rs14,275 crore, as compared to Rs11,280 crore in the same period last year—a 27% increase. HDFC’s loan portfolio was Rs63,446 crore, compared with Rs51,332 crore last year—up 24%. HDFC declared a half yearly profit of Rs1,019.20 crore, against Rs664.84 in the same quarter last fiscal—an increase of 53%, while total income rose by 65% to Rs1,400.70 crore, from Rs846.84 crore in the year-ago period. HDFC’s board on Monday appointed Keki M. Mistry as vice-chairman and managing director of the company and Renu Sud Karnad as joint managing director.