8/6/2019 HDFC Bank Q1FY12 Result Update
1/3
Wealth Research, Unicon Financial Intermediaries. Pvt Ltd.
Email: [email protected]
NG TERM INVESTMENT CALL
HOLD20 July 2011
Company Report | Q1FY12 Result Update
Q1FY12 Result Highlights
HDFC Bank (HDFCB) delivered another strong quarter growth,with
net profit increasing by 33.7% to INR 10.8 Bn YoY. This was
supported by strong loan growth of 29.1% YoY to INR 1.76 Tn.
Deposits grew 15.4% YoY to INR 2.11 Tn, while the CASA ratio
stood at 49.1%.
In Q1FY12 net interest income grew by 18.6% YoY to INR 28.48
Bnsupporting core net interest margins (NIMs) which were stable
at
4.2% on account of increasing advances and stable CASA.
Going
forward, margins are likely to remain stable within the range
3.9%
to 4.3%.
The non interest income for the quarter grew by 19.1% to INR
11.2Bn YoY, primarily contributed by fees and commissions of
INR
9.22 Bn (up 15.9% compared to INR 7.96 Bn in Q1FY11) and
foreign exchange/derivative revenues of INR 2.3 Bn (up 33.9%
against INR 1.7 Bn in Q1FY11). Given the increase in bond
yields,
HDFC Bank incurred a loss on revaluation/sale of investments
of
INR 412.9 Mn for Q1FY12 as compared to a gain of INR 215 Mn
for Q1FY11. Cost to income ratio increased to 48.7% in
Q1FY12
from 47.6% YoY.
The banks asset quality remained healthy in Q1FY12 on the backof
lower slippages. The gross & net NPAs declined to 1.04%
&
0.18% from 1.21% & 0.28% in Q1FY11 respectively. NPA
coverage
ratio improved to 83% from 77% YoY. It also maintained a
healthy
capital adequacy ratio (CAR) of 16.9% with tier I capital of
11.4%
in Q1FY11.
Outlook & Valuation
Going forward, HDFC Bank is expected to keep ~24% of credit
growth & also expected to maintain the CASA ratio at ~50%.
On the
back of continuous growth momentum, strong business &
credit
growth, improvement in asset quality & strong capital
adequacy,HDFC bank commands a premium in its valuations. At the
CMP
stock trades at 4.1x its FY12E book value. We have HOLD rating
on
the stock for a target price of INR 520.
Industry Banking
CMP (INR) 510Target (INR) 520
52 week High/Low (INR) 516/498
Market Cap (INR BN) 1192
3M Avg. Daily Volumes 834410
P/BV FY12E 4.1x
Shareholding Pattern (%)
Promoters
23%
FII
29%
Others
37%
Institutions
11% Stock Performance
300
Jul
Sep
Nov
Jan
Mar
May
Jul
HDFCB NSE Nifty
Performance (%)
1 Month 3 Months 1 Year
HDFCB 11.1 8.8 24.7
NIFTY 6.8 -2.2 4.2* Source: Ace, Unicon Research
(INR in mn)
Particulars Actual Estimates
NII 28480 30929
Operating Profit 20334 23388
PAT 10850 12800* Source: Ace, Unicon Research
Analyst
Shweta Rane | [email protected]
8/6/2019 HDFC Bank Q1FY12 Result Update
2/3
Wealth Research, Unicon Financial Intermediaries. Pvt Ltd.
Email: [email protected]
Financials(INR in mn)
Q1 FY12 Q1 FY11 Y-o-Y Q4 FY11 Q-o-Q
Interest income 59780 44202 35.24 54686 9.32
Interest expense 31300 20190 55.03 26291 19.05
Net Interest Income 28480 24011 18.61 28395 0.30
Other Income 11200 9399 19.17 12558 -10.81
Total Operating income 39680 33410 18.77 40952 -3.11
Operating expenditure 19346 15923 21.50 19984 -3.19
Operating Profit 20334 17487 16.28 20969 -3.03
Operating Profit (%) 34.01 39.56 -554 bps 38.34 -432 bps
Provisions 4437 5550 -20.06 4313 2.86
PBT 15897 11937 33.18 16655 -4.55Tax 5047 3820 32.13 5508
-8.37
PAT 10850 8117 33.67 11147 -2.67
EPS (INR.) 23.24 17.66 31.64 23.96 -2.99
NIMs 4.2 4.3 -9 bps 4.2 0 bpsSource: Company, Unicon Research
*Standalone
