LICHSGFIN Q1 FY24 earnings call.
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Revenue
₹6,746.51 Cr
verified against source
Revenue YoY
28%
reported change
EBITDA
Pending
latest reported figure
Source
screener in partial
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
LIC Housing Finance reported Q1 FY2024 results with revenue from operations of ₹6,746.51 crore, up 28% YoY, driven by higher NIMs expanding to 3.21% (vs 2.51% in Q1 FY23) due to full impact of PLR hikes and favorable asset-liability structure. PAT grew 43% to ₹1,323.66 crore. However, disbursements declined sharply to ₹10,856 crore from ₹15,201 crore YoY, with June alone accounting for ~₹5,000 crore, suggesting the tech platform migration caused disruptions in April-May. Asset quality showed Stage 3 EAD at 4.96% (unchanged YoY), but project loan NPAs remain elevated at 42.12% despite INR 400 crore reduction in outstanding. Management guided for loan book growth of 12-15% and NIMs settling at 2.6-2.75% on full-year basis, versus the current 3.21% quarterly run-rate. The new MD's transformational agenda—50 new offices, technology modernization, marketing intermediary expansion—aims to restore disbursement momentum. Key risk: project loan NPAs remain structurally high with only 18-20% of restructured pool becoming performing.
Colored figures show movement against the previous available record.
Guidance to track
- CFO indicated margins will normalize from current 3.21% quarterly run-rate to 2.6-2.75% band on full-year basis, citing liability repricing and potential RBI rate actions by year-end.
- Management guided for 12-15% loan book growth on full-year basis, up from current 8% YoY, contingent on disbursement recovery post-April-May disruptions.
- CFO stated credit cost guidance of 40-50 basis points for FY24, down from 78 bps in FY23, reflecting declining trajectory in provisions despite elevated project loan NPAs.
- CFO indicated ROA should be in 1.3-1.4% range on blended all-assets basis, compared to ~2% in current quarter which management considers elevated.
Risks flagged
- Despite INR 400 crore reduction in project loan outstanding, Stage 3 remains at 42.12% with INR 4,874 crore EAD. MD committed to exploring ARC sales and OTS for first time, but execution timeline uncertain.
- Analyst raised concern about persistent GNPA elevation even excluding technical glitches. Project loans (42% NPA) and LAP (7.8% NPA) remain structurally weak segments dragging overall portfolio quality.
- CFO deflected direct question on whether margins have peaked, only stating 'substantial improvement' for full year. Analyst noted 3.21% Q1 NIM vs 2.41% full-year FY23 seems elevated given stable yield/cost metrics.
- Investor raised concern about 2-3 year CEO rotation from LIC nominees disrupting organizational continuity, noting new MD will take 1-2 years to learn business before potential transfer. Management acknowledged point but deferred to LIC.
Key quotes
- We have not been very aggressive on OTS or roping in ARC so far. That is one area we are definitely going to look at this year. We'll also be looking at technical write-offs in the coming quarters.
- On the asset side, almost 95%, 97% is on the floating side. The rate, when the rate hikes were passed on, there was not a commensurate increase in the cost of funds, which we were able to hold back. That actually led to the expansion of margins.
- This technological change which we undertook in the month of March, that did create some technical glitches, as a result of which, our collections from our lenders was slightly hit. In most 85% of our EMIs are collected through ENACH and NACH mode. There were some technical glitches in our software, due to which, the presentment of demands could not happen in the months of April and May.
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