Home / Markets / Stock Markets /  LIC Housing Finance rallies nearly 12% on robust earnings

NEW DELHI : Stock of LIC Housing Finance Ltd (LICHFL) rallied nearly 12% in early trade on Tuesday after the mortgage lender reported a 34% jump in its net profit for the first quarter ended 30 June of fiscal year 2020-21.

On the BSE, the LICHFL stock surged 11.45% to Rs308.40 and on the NSE it rose 11.71% to Rs309.

LICHFL on Monday reported a 34% jump in its net profit at Rs817.48 crore for the June quarter. Its PAT (profit after tax) stood at Rs610.68 crore in the June quarter of the previous fiscal.

The total loan portfolio of the company grew 6% at Rs2,09,817 crore in the June quarter of FY21 as against Rs1,97,768 crore a year ago.

“The rise in profit is mainly attributed to provisioning which was lower in the quarter as compared to the last time (Q1 FY20). However, we have fully provided for whatever is required," LIC Housing Finance managing director and CEO Siddhartha Mohanty said in a statement on Monday.

“With unlocking of activities, our business picked up, especially from the month of June, 2020. Though the economic activities are likely to take some more time to recover, we are witnessing an increasing business trend month after month, and we are confident of a rebound in Q2 itself," he added.

At 12:48 pm, shares of LIC Housing Finance Ltd were trading at Rs301.25, up 8.87%, on the BSE; and at Rs301.15 , 8.88% higher, on the NSE.

The BSE Sensex index was trading at 38,850.43, up 0.13%; and the Nifty 50 index at 11,470.65, 0.037% higher.

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