HDFC Q2 in line with estimates; stock closes flat

India’s largest housing finance company has posted in-line set of second quarter earnings during the market hours on Wednesday, October 26. HDFC has reported a 13.8 per cent growth in Q2 at Rs 1,826.5 crore compared with Rs 1,604.56 crore in year-ago period.

Income from operations has grown by 9.6 per cent to Rs 8,063.2 crore from Rs 7,359.6 crore on a yearly basis. 
HDFC's loan book during the quarter has grown by 15.7 per cent to Rs 2.75 lakh crore compared with year-ago period, excluding loans worth Rs 13,086 crore sold in last 12 months.

Company's disbursements have grown by 20 per cent during six months’ period ended September 2016 YoY and sold loans worth Rs 1,939 crore in Q2.

Provisions for bad loans have fallen sharply by 72 per cent sequentially to Rs 95 crore but increased 83 per cent on yearly basis indicating that the asset quality fears have been stemmed.

Shares of HDFC closed flat with a negative bias at Rs 1336 on NSE i.e down 0.31 per cent.