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Journalism of Courage
MUMBAI, Jan 11: Housing Development Finance Corporation (HDFC) has posted 12.83% growth in net profits to Rs 302.48 crore in the first three quarters of fiscal 1999. The profit growth rate for the three quarters, however, was lower than the 13.70% growth recorded in the first half.
Net profit grew at a lower rate of 10.37% for the third quarter. Net profit for the third quarter alone was Rs 77.36 crore compared to Rs 70.09 crore for the third quarter of the previous fiscal.
HDFC recorded a gross profit of Rs 102.19 crore in the third quarter compared to Rs 97.62 crore in the third quarter of the previous year. The provision for depreciation is lower at Rs 11.93 crore this quarter compared to Rs 12.63 crore in the third quarter of previous year. Provision for taxation is also lower at Rs 12.90 crore compared to Rs 14.90 crore in the third quarter of previous year.
The company maintained the same growth rate in income from operations for the third quarter as in the combined growth of all three quarters.Income from operations grew by 23.72% to Rs 444.44 in the third quarter this fiscal compared to Rs 359.23 crore in the third quarter of the previous fiscal.
Income from operations grew by 23.16% for all the three quarters combined to Rs 1,727.39 crore. Other income was lower this quarter at Rs 0.48 crore compared to Rs 2.36 crore previous year’s third quarter.
Comparing the third quarter to the corresponding period of last year, the gross profit margin of HDFC has declined by 4.5 percentage points to 27%. This is the highest decline in margins on quarter to quarter basis in the last two years. The trend of declining margins has not only continued but worsened (second quarter to second quarter, margins in 1998-99 were lower by two percentage points). Higher interest outgo is the main cause of trouble for HDFC and this is reflected in the fact that the interest in the third quarter is 82% of cumulative interest for the first half of 1998-99. So far as future topline growth is concerned, sanctions for thefirst nine months this year have been 25%, compared to 29% in 1997-98.
