LICHSGFIN Q3 FY24 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Revenue
₹26,992 Cr
verified against source
Revenue YoY
16%
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 a strong Q3 FY2024 with PAT of INR 1,163 crore (+142% YoY), driven by 31% NII growth to INR 2,097 crore and margin expansion to 3% (vs 2.41% YoY). The company attributed tepid 5% loan portfolio growth to organizational restructuring (new 44 cluster offices) and new technology platform migration, both now stabilized. Asset quality improved with Stage 3 EAD declining to 4.26% (vs 4.75%) and provision coverage strengthening to 48%, targeting 50% by fiscal year-end. Segmental NPAs remain bifurcated—IHL at healthy 1.71% while developer/NHC book remains stressed at 40.75%. Management signaled Q4 will be "much better" than Q3 and that FY2025 will be the year of growth delivery. NIM guidance for Q4 is 2.8%-3%, with incremental cost pressures offset by stable bond yields. ARC pilot with 10 accounts will be tested; these accounts are fully provided for.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects worst-case NIM decline of 10-15 basis points from current 3% levels due to tight liquidity, with Q4 NIM staying above 2.8%. Stable bond yields post-budget provide some offset.
- Board has mandated reaching 50% provision coverage on Stage 3 assets by March 2024. Currently at 48% with progress on track.
- Monthly disbursement trajectory shows October INR 4,500 crore, November INR 4,700 crore, December INR 5,700 crore. January came in at INR 4,650 crore on retail. Management expects Q4 to be "very good" vs Q4 FY23 and "much better" than Q3 FY24.
- Board-approved ARC policy with external consultant engaged. Phase I test case involves 10 large fully-provided accounts (no interest income impact). If successful, larger pool will be considered in FY2025.
Risks flagged
- 40.75% NPA in NHC/project segment (INR ~6,100 crore Stage 3 EAD on INR 15,000 crore wholesale book) creates uncertainty around credit costs and capital deployment efficiency. While 40-50 accounts are in resolution, timelines remain unpredictable.
- Banks offering prime borrowers home loans at 8.3-8.35% vs LIC HFL's cost of funds at 7.70%, creating margin pressure. Management acknowledged difficulty competing with banks' lower cost of capital and is pivoting toward affordable housing segment.
- Analyst Kunal Shah highlighted sequential decline in Stage 1 and Stage 2 coverage ratios, with Stage 1 provisioning dropping to ~20bps from 25bps. Management attributed this to curing period completions returning to ECL model, but incremental provisioning discipline on migration remains a monitoring point.
- Management declined to provide FY2025 growth guidance, citing March board strategy meeting. "Consolidation year" framing and tech/digital investments in FY2025 raise questions about whether 15%+ book growth targets will be achieved.
Key quotes
- This has been a year of consolidation for LIC Housing Finance, honestly. So we have consolidated our position with a marginal growth of 5% in the books so far. Q4 is going to be certainly much, much, much better. And in the next year...it will be the year when LIC HFL will start delivering.
- Right now, the market as it is very, very, very competitive, especially on the rate front. Individual home loan rates for prime borrowers is as low as 8.3, 8.35. It's tough for an HFC where my cost of borrowing is 7.70% to compete with a bank with probably an average cost of somewhere about 5-5.5%.
- There are no unsecured exposures or unsecured book. Having said that, the fact is that we are expecting a lot of recoveries, including ARC sales. So probably 50% [PCR] is kind of an optimal number.
Research modules