HDB Financials, the NBFC of the HDFC Group has on 17.10.2020 published its Half-yearly results in the National Stock Exchange.
The results are poor as compared to the performance of HDFC Bank. Revenue growth is almost flat. HDB Financials has clocked revenue of 5371 Crores in the first half of FY21 as compared to 5205 Crores in the same period last year.
The PAT has gone down to just 26 Crores as compared to 427 Crores last year. This is a huge dip of almost 93%. This has happened due to a huge increase in impairment on loans of about 937 Crores in the first half of FY21.
In the first half of FY21, as heard in the various newspapers that the HDB financials has removed a lot of employees as well which can be easily calculated by seeing a reduction in Employee benefit expenses from 1536 Crores last year to 1476 Crores.
As of 30.09.2020, the total loan book of the company stands at 57528 Crores. The Book value as of 30.09.2020 stands at 101 per share.
1. D/E = 6.6 on the higher side.
2. Bank facilities, Non-convertible debentures, Subordinated bond issue, and Perpetual bond issue of the HDB Financials have AAA/Stable rating from ICRA and CRISIL.
3. The Company has been duly servicing its debt obligations, maintains a healthy capital adequacy ratio, and has adequate capital and financial resources to run its business.