Top Indian Companies: Housing Development Finance Corporation

Housing Development Finance Corporation Limited (HDFC) is the largest housing finance company in country. It also has a presence in banking, life and general insurance, asset management, venture capital, realty, education, deposits and education loans. It was founded in 1977 with the support from India's business community, as the first specialised mortgage company in India and main company among HDFC group of companies. HDFC Ltd is part of the Nifty 50 index with a weightage of 6.55% .

Products and Services

Mortgage

The company provides housing finance to individuals and corporates for purchase/construction of residential houses.

Life insurance

The company has been providing life insurance since the year 2000, through its subsidiary HDFC Standard Life Insurance company Limited. It offers 33 individual products and 8 group products.

General insurance

The company offers general insurance products such as:

Motor, health, travel, home and personal accident in the retail segment which accounts for 47% of its total business and

Property, marine, aviation and liability insurance in the corporate segment.

Mutual funds

HDFC provides mutual fund services through its subsidiary HDFC Asset Management accountingy Limited. HDFC MF stands at 3rd place with Rs 441,352 crores AUM. .

Major Subsidiaries and Associates

HDFC's key associate and subsidiary companies include HDFC Bank Limited, HDFC Standard Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Asset Management Company Limited, GRUH Finance, HDFC Venture Capital Limited, HDFC RED, HDFC Sales Private limited and Credila Financial Services Private Limited.

HDFC Bank

HDFC holds 26.14% of shares in HDFC Bank. HDFC Bank sources home loans for HDFC for a fee.

Share holding pattern

The Shareholding Pattern page of Housing Development Finance Corporation Ltd. presents the Promoter's holding, FII's holding, DII's Holding, and Share holding by general public etc.

Shareholding Pattern - Housing Development Finance Corporation Ltd.

Holder's Name No of Shares % Share Holding

No Of Shares 1811011813 100%

Promoters 0 0%

Foreign Institutions           1306551930  72.14%

Banks/Mutual Funds       170370826     9.41%

Central Govt                    2490832         0.14%

Others                             52821641       2.92%

General Public                148806534     8.22%

Financial Institutions        129970050    7.18%

FY202 Q4 and Full Year Results

HDFC on Thursday reported a 20 per cent growth in standalone net profit to Rs 4,425 crore for the quarter ending March 2023 on the back of higher interest income.

The bank's profit in the January-March quarter of 2021-22 was Rs.3,700 crore.

In a filing to stock exchanges, HDFC said there was an 18 per cent growth in the standalone profit after tax for the year ended March 31, 2023, at Rs 16,239 crore compared to Rs 13,742.18 crore in 2021-22.

Assets under management stood at over Rs 7.2 lakh crore.

"After providing Rs 973 crore for tax, the reported profit after tax stood at Rs 4,425 crore compared to Rs 3,700 crore in the corresponding quarter of the previous year, representing a growth of 20 per cent," the lender said.

The net interest income (NII) for the quarter ended March 31, 2023, stood at Rs 5,321 crore compared to Rs 4,601 crore in the previous year, representing a growth of 16 per cent.

The Board of Directors declared an interim dividend for the year ended March 31, 2023 of Rs 44 per equity share of face value of Rs 2 each compared to a final dividend of Rs 30 per equity share in the previous year, HDFC said.

The lender also said for the year ended in March 2023, the consolidated profit after tax attributable to the HDFC stood at Rs 26,161 crore, a growth of 16 per cent year-on-year.

Quantum Securities said: “We continue to rate HDFC Ltd as our top pick in HFC space due to its dominant position in housing finance enabling it to benefit from revival in the segment, strong capital position, robust funding profile, better asset quality and listed/unlisted group companies continuing to be leaders in their respective segments, thus adding value to the company.

“Quantum Securities maintain a ‘Buy’ rating on HDFC Ltd with a revised price target of Rs 3626 (4x FY23E ABV plus subsidiary/associate value of Rs 1410.9 per share) as against Rs 3648 earlier (4x FY23E ABV plus subsidiary/associate value of Rs 1432.6).”

ESG and Sustainability

HDFC’s focus on ESG parameters is best reflected in its core values which are embedded in all its activities, complying with requisite environmental regulations in its premises and operations.

This includes promoting sustainable practices and green initiatives through zero plastic bottles across all branch network, installing solar panels and energy efficient lights, recycling paper waste as well as electronic waste.