On Thursday, housing finance juggernaut HDFC is scheduled to release its financial earnings report for the fourth quarter of FY23. Although PAT growth may only reach single digits, the NBFC player is likely to experience better net interest income (NII) growth. Asset quality is thought to be stable. Therefore, attention will be focused on HDFC's stock price. It should be mentioned that HDFC previously disclosed its financial results for the period from January to March 2023 earlier last month. 

Comparatively, to Q4FY22's equivalent period, when individual loans totalling 8,367 crores were allocated, the corporation assigned loans totalling 9,340 crores in Q4FY23. There were 36,910 crore in individual loans sold during the previous 12 months. A further 207 crore in gross dividend income was reported by the corporation for Q4. For the quarter, there was a net gain on fair value changes of 269 crores as reported in the statement of profit and loss.

Prabhudas Lilladher Predicts HDFC to Experience Stable Quarter-on-Earnings with Strong NII Growth

According to business headlines today on ICICI Direct's preview note, "Healthy demand for housing loans is likely to drive loan growth at HDFC Ltd of 15% YoY to $6,51,060 crore. Thus, 15% YoY growth in NII to $5,024 crore is expected. NIMs typically hold steady despite the high level of competition. Provisions are expected to decrease slightly YoY at 391 crores, which will result in a gain in standalone profit of 6.3% YoY (4.8% growth QoQ) to 3868 crores. It's anticipated that subsidiaries will report stable performance.

Despite this, the brokerage anticipates HDFC to report an NII of 5,024.1 crores, an increase of 3.8% quarterly and 15% year over year. A single-digit gain of 4.5% YoY and 4.8% QoQ is evident in PAT, which is reported at 3,868.3 crores. Prabhudas Lilladher predicts that HDFC would experience a stable quarter-on-earnings, with stronger NII growth of 4.9% QoQ and 10.4% YoY. With GNPA at 1.80%, asset quality measures would remain constant, but credit costs would be less than 0.25%.

As per online news portals in India, HDFC reported a 13% YoY increase in net profit during Q3FY23, going from $3,260 crore to $3,691 crore. NII increased by 13%, from 4,284 to 4,840 crore, representing a total of $4,840 billion. Individual loans account for 82% of the assets under management (AUM) as of December 31, 2022, up from the previous year's figure of $6,18,917 crore. On the BSE, HDFC's stock price concluded the day on Wednesday at 2,788.70 a share, a slight decline from the previous session.