LICHSGFIN Q1 FY25 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹6,783.67 Cr
verified against source
Revenue YoY
0.55%
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 delivered Q1 FY25 PAT of INR 1,300.21 crore (+6.25% YoY), but revenue growth was marginal at just 0.55% to INR 6,783.67 crore due to compressed NIMs. NII declined to INR 1,989.08 crore (vs INR 2,209.44 crore) as NPA recoveries dropped sharply to INR 90 crore from INR 230 crore in Q4, and NIM compressed to 2.76% from 3.21% YoY. The loan portfolio grew only 4% YoY to INR 2,86,665 crore versus management's double-digit growth guidance, though disbursements accelerated strongly at +19% YoY to INR 12,915 crore. Stage 3 asset quality improved significantly to 3.30% (vs 4.96%), with provision coverage maintained at ~50%. Management acknowledged margin pressure but expects 2.76% as the bottom, with cost of funds already stabilizing and incremental rates trending lower. Growth strategy focuses on increasing non-IHL disbursements from 13% to 20% to improve margins, targeting FY25 disbursements of INR 75,000 crore. Key risk: portfolio growth trajectory may not achieve double-digit target if prepayment/rewrite pressures persist.
Colored figures show movement against the previous available record.
Guidance to track
- Despite Q1 at 4% YoY, management reiterated double-digit growth target, expecting disbursement momentum to accelerate with strong sanctions pipeline (INR 15,180 crore sanctioned in Q1, +30% YoY).
- Up from INR 60,000 crore in FY24, implying ~25% growth in disbursements. Management expects stronger H2 with project loan pipeline and builder book disbursements.
- Margins bottomed at 2.76% in Q1. Management expects improvement in coming quarters from risk-based pricing revisions, higher-yielding non-IHL mix increase, and declining incremental cost of funds.
- From current 12.5-13%, targeting 20% share of non-individual home loans (LAP, builder, corporate) by FY26 to improve margins, as IHL segment faces intense bank competition.
Risks flagged
- Q1 portfolio growth of 4% vs double-digit guidance creates execution risk. High prepayment and rewrite pressures (INR 11,000-12,000 crore quarterly book erosion) may continue to offset disbursement growth.
- NPA interest income highly volatile - dropped from INR 230 crore in Q4 to INR 90 crore in Q1. Normalized guidance of INR 130-140 crore may not materialize if NCLT resolutions face further delays.
- Analyst raised sharp decline in Stage 1/2 provisioning (INR 121 crore reversal from cured accounts). Management explained ECL model mechanics but acknowledged volatility in provision coverage metrics.
- Three large accounts (INR 250 crore, INR 400 crore, INR 375 crore) in NCLT awaiting resolution with 'green shoots' mentioned but no firm timeline. Additional technical write-offs of INR 400-500 crore expected.
Key quotes
- We have hit the rock bottom, 2.76. I don't think we're going to go any lower than this, and I expect margins in the coming quarters to strengthen, to be better off than what they are at the end of this quarter.
- There was a certain phase in our business operations where we were very aggressive on the non-housing part and, yeah, we took some wrong decisions, decisions, let me say that. But of late, if you look at the last four years, specifically, I think we are pretty comfortable with what we've done in LAP.
- About INR 2,000 crore of such assets, which were already upgraded in the month of March, we were holding some provisions, which was to the tune of around INR 121 crore, which was pertaining to the Stage 2 level of provisioning. Once the curation period of it has been removed, it has been reversed.
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