MUMBAI : Shares of LIC Housing Finance tanked 6.6% after the company reported a 39% decline in its January-March (Q4) net profit ₹424.31 crore.
At 12:30 pm, shares of LIC Housing Finance traded at ₹268.35, down 5.7% from its previous close, while the benchmark Sensex was up 0.6% at 34,951.22.
Total income rose 5.1% year-on-year to ₹4,903.54 crore in Q4. The board of the financier has recommended a dividend of ₹8 per equity share for FY20.
Total disbursements stood at ₹11,325 crore in the last quarter compared with ₹17,242 crore in the year-ago period. Of this, individual home loans were worth ₹8,877 crore and project loans accounted for ₹413 crore.
Individual loan portfolio stood at ₹1.96 lakh crore, up 8% on year, while project loan portfolio grew ₹14,237 crore from ₹13,077 crore in the year-ago period. Total outstanding loan portfolio grew 8% to ₹2.10 lakh crore.
Analysts at Emkay Global Financial in a note said, “Cautious over the company’s growth trends and asset quality profile for the last many quarters. With only two weeks of lockdown in March, we are disappointed with the overall disbursement, loan growth and asset quality reported in Q4FY20 and continue to believe that the housing loan book is safer than asset-backed loans in current turbulent times. The stock trades at 0.7 times FY2022E book value and 6.3 times FY2022E earnings per share.”
The brokerage has a hold rating on the stock.
Speaking on the performance, Siddhartha Mohanty, MD & CEO, LIC Housing Finance Ltd said, “Considering the headwinds due to the general economic slowdown, we have registered a decent performance. The outbreak of covid-19 pandemic has thrown up fresh challenges of a magnitude never witnessed in decades.”
LIC Housing Finance is one of the largest housing finance companies in India. As of 31 March, Life Insurance Corporation of India held 40.31% stake in the financier.