LIC Housing Finance Ltd has reported a robust performance for the first quarter ending June 30, 2024, showcasing significant increases in home loan disbursements. According to the company’s audited standalone results, total disbursements soared to ₹12,915 crore, reflecting a remarkable 19% increase from ₹10,856 crore during the same period of FY2024. This surge is indicative of the strong demand for housing in India, driven by a growing middle class seeking home ownership.
The Individual Home Loans segment was particularly notable, achieving a 16% growth with disbursements reaching ₹10,932 crore, up from ₹9,419 crore in Q1 FY2024. This increase not only highlights the company’s market strength but also signifies a broader trend in consumer confidence regarding real estate investments. In addition, project loan disbursements experienced a staggering 108% rise, climbing to ₹521 crore from ₹251 crore in the previous year. This surge suggests a renewed interest in infrastructure and commercial development, reflecting a bullish outlook among developers and investors alike. Despite these positive indicators, LIC Housing Finance’s revenue from operations grew modestly to ₹6,783.67 crore, up from ₹6,746.51 crore in Q1 FY2024. The Net Interest Income (NII) for the quarter stood at ₹1,989.08 crore, a decline from ₹2,209.44 crore year-on-year, signalling some challenges in maintaining profitability amidst competitive pressures.
Notably, the company’s Profit Before Tax (PBT) was ₹1,628.43 crore, slightly down from ₹1,648.99 crore compared to the same quarter last year but showing a 10% increase from the previous quarter. Meanwhile, the Net Profit After Tax (PAT) was ₹1,300.21 crore, down from ₹1,323.66 crore year-on-year, yet exhibiting a sequential rise of 19% from the previous quarter. The Individual Home Loan portfolio reached ₹2,46,275 crore as of June 30, 2024, reflecting a 7% increase from ₹2,31,087 crore a year earlier. However, the Project Loan portfolio experienced a decline, falling to ₹8,099 crore from ₹11,321 crore. The total outstanding portfolio grew by 4%, standing at ₹2,88,665 crore compared to ₹2,76,440 crore in the previous year. Moreover, asset classification and provisioning under IndAS 16 showed provisions for Expected Credit Loss (ECL) at ₹5,670.07 crore, down from ₹7,590.68 crore the previous year, indicating improved asset quality management. The Stage 3 Exposure at Default improved to 3.30% from 4.96% a year ago, signalling a positive trend in credit risk management.
Overall, LIC Housing Finance’s performance in Q1 FY2025 underscores its resilience and unwavering commitment to expanding its loan portfolio, despite facing challenges in net interest income and margin pressures. The company’s strong focus on sustainable growth and improved asset quality positions it favourably for future success in the evolving financial landscape.
