BackLIC Housing Finance Q3 profit declines 37% on higher financing costs
The mortgage lender’s finance costs rose 19.4%, accounting for 80% of total expenses, which increased 28.6% to Rs5,283 crore
PremiumNEW DELHI : LIC Housing Finance Ltd (LICHFL) on Monday reported a massive decline in its net profit for the December quarter of fiscal year 2023. Its net profit, hit by higher financing costs, fell 37% year-on-year basis to Rs480.30 crore in the third quarter from Rs767 crore a year ago.
The Mumbai-based mortgage lender’s finance costs rose 19.4%, accounting for 80% of total expenses, which increased 28.6% to Rs5,283 crore.
LIC Housing Finance said its impairment costs on financial instruments surged 114.5% to Rs763 crore.
LIC Housing's interest income rose 16.8% to Rs5,839 crore in the December quarter.
On Monday, LICHFL’s shares fell 2.88% to close at Rs388.30 apiece on the BSE, ahead of the results. Its stock has fallen over 6% so far this year.
Due to poor sales in October and November 2022, of the total loan disbursement, the retail/individual home loan segment stood at Rs13,580 crore as against Rs15,341 crore, but recovered in December.
LICHFL’s outstanding loan portfolio increased 10% to Rs2.68 lakh crore by December 2022, of this the individual home loan portfolio stood at Rs2.23 lakh crore up 14% year-on-year and project loan book stood at Rs10, 857 crore as against Rs14,091 crore.
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