In Q4 FY24, LIC Housing Finance’s net profit decreases by 9.14%.

NEW DELHI: A 9.14% decrease in net consolidated profit was recorded by LIC Housing Finance for the quarter that concluded on March 31, 2024. In Q4 FY24, the company’s profit after tax was Rs 1,082.06 crore, compared to Rs 1,190.88 crore in the same quarter of the previous fiscal year, according to a BSE filing.

In Q4 FY24, the company’s net consolidated total income was Rs 6,948.61 crore, up 8.04 percent from Rs 6,431.23 crore in the same period the previous year.

The company’s managing director and CEO, Tribhuwan Adhikari, stated, “We were able to close the year with record high margins and profits thanks to our focus on reduction of non-performing assets and control over funding costs.”

The company’s board of directors, among other things, accepted the dividend recommendation for the fiscal year 2023–2024 450%, or Rs. 9 for each equity share valued at Rs. 2. The board suggested a 450% dividend.

It gave its approval to Anil Kaul’s appointment to the company’s board as an extra independent director.

Its total debt to total assets was 0.88%, net profit margin was 17.50%, gross non-performing assets was 3.31%, net non-performing assets was 1.63%, and the liquidity coverage ratio was 175.34% as of March 31, 2024. Its net worth was Rs 29,226.51 crore.

For the quarter, net interest income came to Rs 2,238 crore, with net interest margins standing at 3.15%. Total disbursements increased by 14% to Rs 18,232 crore in Q4 FY24 from Rs 16,027 crore in the same period in FY23. Project loans were disbursed at Rs 1,501 crore as opposed to Rs 1,554 crore in Q4 FY23, while individual house loan disbursements were at Rs 14,300 crore, up 15% from Rs 12,406 crore in Q4 FY23.

Compared to the same time last year, when net interest income (NII) was Rs 1,990.30 crore, it increased by 12% to Rs 2,237.60 crore. The quarter’s net interest margin (NIM) was 3.15%, compared to 2.93 % in Q4 of FY23.

The individual house loan portfolio increased by 7% to Rs. 2,44,205 crore as of March 31, 2024, from Rs. 2,28,730 crore the previous year. As of March 31, 2024, the portfolio of project loans was worth Rs. 8,036 crore, compared to Rs. 11,738 crore on the same date in 2023. From Rs 2,75,047 crore in the prior year to Rs 2,86,844 crore this year, the total outstanding portfolio increased by 4%.

Expected Credit Loss (ECL) reporting governs asset classification and provisioning adjustments for potential credit loss under IndAS.

As of March 31, 2024, the provisions for ECL were Rs. 6270.06 crs, compared to Rs. 7230.26 crs on the same date in 2023. As of March 31, 2024, the Stage 3 Exposure at Default was 3.31%, compared to 4.37% on the same date in 2023.