HDB Financial Services Limited 9MFY24 vs 9MFY23 Results

HDB Financial Services, a renowned Non-Banking Financial Company (NBFC) established in 2008, recently announced its impressive financial results for the quarter ending December 31, 2023, and the nine-month period of FY24. These results are particularly significant for investors and analysts interested in HDB Financial unlisted shares, as they provide valuable insights into the company's financial health and future prospects.

Key Financial Highlights and Growth in HDB Financial Unlisted Share Value

In the latest financial reports, HDB Financial Services showcased a steady growth trajectory. The company's Net Interest Income for the 9 months ended December 31, 2023, witnessed a 23% increase, reaching INR 8098 crore compared to INR 6546 crore in the preceding 9 months of the same fiscal year. This uptrend is a positive indicator for the valuation of HDB Financial unlisted shares.

Moreover, over the nine months ending in FY24, the total revenue surged by 14%, amounting to Rs. 10504.3 crore, up from Rs. 9182.7 crore in the same period the previous year. This robust growth in revenue underscores the company's strong performance and the increasing attractiveness of HDB Financial unlisted shares in the financial market.

Expense Management and Operational Efficiency

The total expenses for the quarter ended December 31, 2023, saw a modest rise of 1.4%, totaling Rs. 2746.2 crore, compared to Rs. 2708.9 crore in the previous quarter. Over the nine months, the expenses increased by 10.4% to Rs. 8081.4 crore. This controlled increase in expenses reflects HDB Financial Services' effective cost management strategies, further enhancing the appeal of HDB Financial unlisted shares.

Profitability Analysis

A key highlight for investors in HDB Financial unlisted shares is the company's profitability. The Profit Before Tax (PBT) for the quarter ended December 31, 2023, grew by 6% to Rs. 855.6 crore from Rs. 806.8 crore in the previous quarter. The PBT for the nine-month period showed an even more impressive increase of 27.9%, reaching Rs. 2422.9 crore, up from Rs. 1894.2 crore in the previous year. This substantial growth in profitability is a strong signal for the potential of HDB Financial unlisted shares.

Similarly, the net profit for the quarter under review also increased by 6% to Rs. 636.8 crore, compared to Rs. 600.8 crore in the previous quarter. For the nine months ending December 31, 2023, the net profit soared by 27%, reaching Rs. 1804.6 crore, up from Rs. 1413.9 crore in the same period of the previous fiscal year. This consistent rise in net profit highlights the solid financial foundation and growth prospects of HDB Financial Services, making HDB Financial unlisted shares an attractive proposition for investors.

NPA 

Gross NPA has also reduced from 3.23% in 9MFY23 to 2.75% in 9MFY24. 

Diverse Product Portfolio and Robust Business Operations

HDB Financial Services has established itself as a key player in the NBFC sector, with a diverse product portfolio that includes consumer loans (such as gold, durable, auto, personal, and MF-backed loans), enterprise loans for SMEs, and asset finance for vehicles. The company also offers fee-based products like life and general insurance, in collaboration with HDFC Life and HDFC Ergo, enhancing its revenue streams.

Additionally, HDB Financial Services provides Business Process Outsourcing (BPO) services, including collection services through its 15 call centers, in association with HDFC Bank. With a wide network of 1,468 branches across 1,070 cities, the company plays a pivotal role in serving both retail and commercial clients, thereby underpinning the growth potential of HDB Financial unlisted shares.

Conclusion

In conclusion, the financial results for the quarter and nine months ending December 31, 2023, of HDB Financial Services showcase a strong and growing financial profile. The company's revenue growth, controlled expense management, and increasing profitability are key indicators of its financial health. These factors, combined with its diverse product portfolio and expansive operational network, make HDB Financial unlisted shares an appealing option for investors looking for growth and stability in the financial sector.