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LIC Housing Finance Ltd announces its Q2 FY19 results
The Board of Directors of LIC Housing Finance Limited announced its un-audited results for the second quarter ended on September 30, 2018 following its approval by the Board of Directors in a meeting held in Mumbai on October 29, 2018.
As per the notifications issued by the Ministry of Corporate Affairs and National Housing Bank, the Company has adopted Indian Accounting Standards i.e. IndAS from 1st April 2018 and all financials are stated in accordance with the same.
Performance highlights at a glance-Q2 FY2019 (1 crore =10 million)
In the quarter ended September 30, 2018, total disbursements were Rs 14272crores as against Rs10975crores for the corresponding period in the previous year registering a growth of 30%. Out of that, disbursements in the retail loan segment were Rs11324cr against Rs10367 crores, whereas total disbursements in project loans was Rs2948 crores as against Rs608crores for quarter ended September 30, 2017. The Company continues to witness good growth in Affordable Housing segment with the segment accounting for 16% of disbursements in terms of number of accounts and 13.5% in terms of amount of disbursements during the quarter under review.
The company's total income for quarter ended September 30, 2018 was Rs4203 crores as against Rs. 3759crores during the same period previous year, marking a growth of 12%. Revenue from operations grew 12% from Rs. 3751 crores toRs. 4198 crores.
Net Interest Income was Rs 1012 cr, as against Rs 963cr for the same period in the previous year.
Profit before Tax for the quarter was Rs. 745.34 crores as against Rs. 639.74crores for the same period in the previous year, registering a growth of 17%.
Net profit after tax stood at Rs. 573.16 crores as compared to Rs. 513.88crores during the same period previous year. The total loan portfolio stood at Rs175953cr as against Rs151417cr a growth of 16%. The Individual loan portfolio stood at Rs165102crores as against Rs145486crores, showcasing a growth of 13.5%. Individual Loans comprises 94% of the total Loan portfolio.
Net Interest margins for Q2 ended September 30, 2018 stood at 2.35%.
Under Indian Accounting Standards norms, asset classification and provisioning changes from the rulebased model to the Expected Credit Loss (ECL) model of providing for expected future credit losses based on Exposure at Default (EAD). The loan loss provisions are computed based on the Company’s loss rates experienced in the past and future expected credit loss after accounting in various parameters.
As per NHB norms Gross NPAs for the company stood at 1.20% as on September 30, 2018. Gross NPAs in individual segment was 0.81% as on September 30, 2018. The Gross NPAs as on June 30, 2018 was 1.21% and the corresponding figure for Individual Loans was 0.81%. Speaking on the performance, Mr. Vinay Sah, MD & CEO, LIC Housing Finance said, “In the Second quarter of the financial year, we have seen strong disbursal growth and expect the trend to continue in future quarters. The company recorded a strong growth in the affordable segment both in value & volume terms and is poised to continue its growth trajectory. The Company continues to enjoy comfortable liquidity position.”
Lighthouse invests INR 250 crores in Aqualite, one of India’s leading footwear brands
Lighthouse India Fund III, Limited, an affiliate of Lighthouse Advisors, India’s leading, consumer-focused private equity manager, is investing over INR 250 crore (USD 35 million) to acquire a minority stake in Aqualite Industries, one of India's leading footwear companies. Founded more than three decades ago, Aqualite offers more than 6,500 SKUs in hawai, non-hawai and shoe product categories. The products are sold under several subbrands, under the umbrella of ‘Aqualite’. The Company
operates through its manufacturing units located across Haryana and Rajasthan. It has a pan-India distribution network of 35,000 retailers, with significant presence in north and east India. The Company is expecting a turnover of over INR 800 crore in the current financial year. “We are very excited to partner with Lighthouse, given their impressive track record of investments in over twenty-five brands. We look forward to their support and guidance for our next leg of growth. We plan to utilize the capital for marketing, capacity expansion and growth plans” shared Mr. Davinder Gupta, Founder, Aqualite Industries.
Mr. Sachin Bhartiya, Partner at Lighthouse, added, “We strongly believe in the growth story of footwear Industry in India with the current under penetration (per capita spend of only 1.8 pairs p.a. vs 3.1 in China) and consumer preference shift towards branded wear. Aqualite has achieved scale in footwear Industry, on back of product quality and relationship with the channel partners. We are very excited by the growth opportunity ahead of the Company.”
EY acted as the sole financial advisor to the Company for the fund raise.
Lighthouse is a leading mid-market private equity firm focused on growth investments in India's consumer sector. It has backed marquee consumer centric brands such as Bikaji Foods, ethnic snack food player, Kama Ayurveda, luxury premium ayurvedic personal care brand, FabIndia, ethnic lifestyle brand and Cera, leading sanitary ware brand.
Aqualite marks the fourth investment for Lighthouse in the current year. Last month, the fund invested INR 160 cr in Duroflex, a leading mattress brand in south India. In September, it made an investment of INR 113 cr in Nykaa, India’s premier beauty retailer, while in June, it invested INR 83 cr in Tynor Orthotics, a leading orthotic soft goods brand.
Other portfolio companies of Lighthouse include laminates maker Stylam Industries, QSR chain Wow! Momo and value retailer V2 Retail.
Shri Nitin Gadkari to lay the foundation for India’s largest Dry Dock at Cochin Shipyard
With this Cochin Shipyard will be able to build specialized and technologically advanced large vessels
He will also lay the foundation stone for three national highways projects in Kerala, costing Rs 1557 Crore The Union Minister for Shipping, Road Transport & Highways, Water Resources, River Development & Ganga Rejuvenation Shri Nitin Gadkari and Kerala Chief Minister Shri Pinarayi Vijayan will lay the foundation for India’s largest Dry Dock at Cochin Shipyard in Kerala tomorrow. The Dry Dock will give an impetus to “Make in India” initiative under Sagarmala and raise India’s share in global shipbuilding to 2 percent. India currently occupies 0.66 % share in global shipbuilding market. The commercial ship building industry in India is worth Rs. 3,200 Croreand focuses primarily on small-medium sized offshore vessels and cargo/bulk carriers. At present, Cochin Shipyard has two dry docks, one predominantly used for ship building of size 255m x 43 x 9m and capacity 1,10,000 DWT and the other one for ship repair of size 270 x 45 x 12m and capacity 1,25,000 DWT.
The new Dry Dock is being constructed at a cost of Rs 1799 Crore. It will be 310 m long, 75m wide, with a depth of 13 m and drought of 9.5m. The dock will be designed to handle both ship building and repairs, and bear a load up to 600 T/m. It will be equipped with international safety standards. The dock will also have a water treatment plant and Green Belt Development. Equipped with this Dry Dock, Cochin Shipyard will be able to build specialized and technologically advanced large vessels like LNG Carriers, drill ships, jack up rigs, large dredgers, aircraft carriers for Indian Navy and high end research vessels.It will also help make Cochin a one stop maritime hub for all repair needs in South East Asia.
The project is expected to be completed by May 2021 and generate employment opportunities for about 2000 people. Two 500 capacity passenger vessels built by CSL for Andaman and Nicobar Islands administration will also be launched on the occasion. These vessels will help enhance intra island connectivity.
Shri Gadkari will also lay the foundation stone for three National Highways projects in Kerala, costing Rs 1557 Crore at an event in Eranholi in Thalassery in Kannur district. These would include the construction of the 18.6 km, 4 lane Thalassery – Mahe bypass (NH-66) at a cost of Rs 1181 Crore ; construction of 0.78 km, 4-lane Railway Over Bridge near Neeleshwaram town (NH-66) at a cost of Rs 82 Crore and widening of 46.72 km from Nattukal to ThanavuJn (NH-66) to two lane with paved shoulder at a cost of Rs 294 Crore .