LIC Housing Finance shares fell 4% to Rs 501 in intra-day trade on the BSE on Wednesday as investors booked profits after the company announced a strong set of results for the March quarter (Q4FY21) in terms of operating and business growth. However, a significant increase in provisions harmed profitability. For the fiscal year 2020-2021, the board recommended a dividend of 425 percent, or Rs 8.50 per equity share of Rs 2 each.
With today’s drop, the stock has fallen 8% from its 52-week high of Rs 542, which it reached on Friday (June 11, 2021). Despite the recent drop, LIC Housing Finance has beaten the market by gaining 18% in the last month, compared to an 8% rise in the S&P BSE Sensex.
In Q4FY21, the company’s net interest income (NII) increased by 33% year on year (YoY) to Rs 1,505 crore, supported by a strong 30 basis point (bps) sequential increase in net interest margin (NIM) to 2.66 %. The business had excellent loan growth across the board, including home loans, LAP, and the Builder book. In March 2021, collection efficiency remained steady at 98 percent.
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Hello, my name is Anuj Boruah. I am quite interested in writing about current events in business, finance, and the economy. I work as a newswriter at Reviewminute.