LIC Housing Finance Q4 Net profit declines

LIC Housing Finance Limited, one of India's leading housing finance companies, has reported its financial results for the fourth quarter of the fiscal year. The company's net profit for the quarter fell over 7.5% year-on-year to Rs 1,091 crore. Despite facing headwinds in the operating environment, LIC Housing Finance continues to demonstrate resilience and remains focused on its strategic objectives.

In the fourth quarter, LIC Housing Finance reported a marginal increase in gross profit to Rs 1,476 crore compared to Rs 1,445 crore in the corresponding period. Notably, its net interest income surged by 12% to reach Rs 2,238 crore from Rs 1,990.30 crore in the previous year, indicating robust performance in this key financial metric. The net interest margin (NIM) also showed improvement, standing at 3.15% compared to 2.93% in the same period last year, reflecting enhanced efficiency in managing interest-bearing assets and liabilities.

Furthermore, the company witnessed an 8% increase in total income to Rs 6,937 crore, while total expenses rose by approximately 10% to Rs 5,461 crore. This growth trajectory underscores LIC Housing Finance's ability to maintain a healthy balance between revenue generation and cost management.

Additionally, the company's loan disbursements surged by 14% year-on-year, reaching Rs 18,232 crore during the quarter, signaling continued momentum in its lending activities. Looking ahead, the company's board has recommended a substantial dividend of 450% for the fiscal year 2023-24, amounting to Rs 9 per equity share of Rs 2 each, subject to approval, which reflects its commitment to rewarding shareholders. Despite these positive financial indicators, the company's share price experienced a slight decline of 0.5% to Rs 630.25 on the Bombay Stock Exchange (BSE), amid a broader market downturn, with the Sensex falling by 0.17% or 130.65 points to 72,968 on the same day.

Looking ahead, LIC Housing Finance remains optimistic about the long-term growth prospects of the housing finance sector in India. The government's initiatives to promote affordable housing and stimulate economic recovery are expected to create favourable conditions for growth in the housing finance market. LIC Housing Finance is well-positioned to capitalise on these opportunities and deliver sustainable value to its shareholders, customers, and other stakeholders in the years to come.