Housing financier Housing Development Finance Corporation Ltd saw its net profit dip marginally because of one-off items and higher provisions in the June quarter.
Net profit for the first quarter stood at Rs 3,001 crore, down 1.73% year-on-year. This is against a Bloomberg consensus estimate of Rs 2,605 crore.
The company said that its net profit was not comparable to last year due to a host of one-off items.
Profit on sale of investments was lower at Rs 263 crore, compared with Rs 1,241 crore a year ago.
Dividend income in Q1 was at Rs 16 crore, compared with Rs 298 crore a year ago.
Charge for employee stock options in Q1 was Rs 146 crore, compared with Rs 1 crore last year.
Effective tax rate applicable this year was 23.1%, compared with 15.4% last year.
According to disclosures by HDFC, its net interest income rose 22% year-on-year to Rs 4,147 crore in the first quarter, compared with the analyst estimate of Rs 5,763 crore.
The company’s asset quality position weakened, with gross non-performing asset ratio at 2.24% as of June 30, compared with 1.98% in March.
“Individual NPAs increased due to slippages on account of the impact of the second wave of the pandemic. Collection efforts were hindered due to the recovery teams being unable to do field visits during the lockdown period,” the company said in its statement.
It held provisions worth Rs 13,189 crore at the end of the first quarter, higher than Rs 13,025 crore held in March and Rs 12,285 crore a year ago.