HDFC Q2 net profit tanks 28% YoY to Rs 2,870 crore
HDFC’s net profit for the September quarter of FY21 tumbled 27.5 percent to Rs 2,870.12 crore, less than Street's expectations of over 50 percent decline, supported by a gain from stake sale HDFC Life during the quarter. It had clocked a net profit of Rs 3,961.5 crore in the year-ago period.
On a consolidated basis, the profit declined 53.15 percent to Rs 5,035.41 crore from Rs 10,748.69 crore clocked in Q2FY20. The lender has set aside provisions worth Rs 436 crore in the September quarter of FY21. "The Corporation has sold 26 million equity shares of HDFC Life Insurance Company Limited (HDFC Life) resulting in a pre-tax gain of Rs 1,240.59 crore," the management said in a statement to the exchanges.
The numbers beat profit estimate, cheering investors. The stock soared to the day's high of Rs 2,043 apiece on the BSE, up 6.2 percent, as against a 0.65 percent rise in the benchmark S&P BSE Sensex.