Emkay Global Financial Services Ltd | LIC Housing Finance (LICHF IN) Q4FY17 Results First Cut: Better than expected growth and margin performance; higher provisions led to in-line earnings


-          Net interest income +28% yoy (+15% qoq) at Rs10.5bn – approx. 7% above expectations – this is indicative as we await further details on interest income breakup
-          Other income -36% yoy (+22% qoq) – indicative as breakup awaited
-          Opex +25% yoy (+40% qoq) – other operating expenses are substantially higher than expectations
-          Operating profit +22% yoy (+10% qoq) at Rs8.95bn – 5% above expectations
-          Provisions +137% yoy (+97% qoq) – significantly higher than expectations – await asset quality details; potentially higher provisions could be towards certain developer loans    
-          Tax rate at 34%
-          PAT +18% yoy (+6% qoq) at Rs5.3bn – in line with expectations
-          Loans grew 15.5% yoy (+7% qoq) at Rs1.45trillion
-          Asset quality and loans breakup details awaited
At Rs658, the stock trades at 2.4x FY19E BV and 14x FY19E EPS. We currently have a HOLD rating on the stock with a price target of Rs570.

Subscribe to receive free email updates: