LICHSGFIN Q4 FY24 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹6,936 Cr
verified against source
Revenue YoY
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reported change
EBITDA
Pending
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Actual signal trajectory
Where this quarter sits.
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What the record says.
LIC Housing Finance delivered a strong Q4 FY24 with revenue from operations of INR 6,936 crore, up 8% QoQ, though PAT declined 7.6% YoY to INR 1,090.82 crore due to one-off provisions totaling INR 381 crore (wage revision INR 32 crore, gratuity INR 22 crore, DTL INR 227 crore, ECL INR 100 crore). Full-year FY24 PAT reached a record INR 4,765 crore, up 65% YoY. The improvement was driven by NII growth of 12% YoY to INR 2,237 crore, with NIM expanding to 3.15% (vs 2.93% in Q4 FY23). Asset quality improved significantly with Stage III EAD declining to 3.31% from 4.37%, though technical write-offs of INR 1,080 crore masked organic resolution. Disbursements grew 14% YoY to INR 18,232 crore. Management guided for double-digit AUM growth and NIM sustainability at 2.7%-2.9%, citing structural improvements from liability renegotiations and mix shifts. Risk includes elevated cost of funds (7.90% incremental) and uncertain recoveries from the INR 4,000 crore technical write-off pool.
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Guidance to track
- Management targets double-digit growth in disbursements and AUM for FY25, with confidence to reach INR ~70,000 crore disbursements based on Q4 performance recovery and new office network delivering.
- Management expects NIM to remain in 2.7%-2.9% band with delivery closer to higher end, citing potential rate cuts as buffer. Full-year FY24 NIM was 3.08%.
- Cost-to-income ratio for FY24 was ~13%, expected to remain steady in 13%-13.5% range for FY25, working towards gradual reduction.
- Management indicated good visibility on continued Stage III reduction based on ongoing recovery efforts, ARC exploration for large accounts, and focused litigation management.
Risks flagged
- Management guided NIM to 2.7%-2.9% for FY25 (vs 3.08% in FY24), acknowledging that RBI rate cuts would pressure margins. Rate cuts would be passed to borrowers with roughly one-quarter lag.
- Cost of funds increased 13bps YoY to 7.76% and 6bps sequentially in Q4. Incremental cost of funds stood at 7.90% for Q4 vs 7.84% full-year average, indicating continued funding cost pressure.
- Technical write-off pool of ~INR 4,000 crore (predominantly builder book in litigation/IBC) has uncertain recoverability. Management declined to provide recovery estimate, noting litigation is a slow process.
- Q4 PAT was impacted by ~INR 381 crore in one-off provisions (wage revision, gratuity change, DTL, ECL buffer). Excluding these, quarterly earnings would have been materially higher.
Key quotes
- This is the fifth quarter in a row, back to back, that we have delivered margins at 3% or around 3%. So this is not a one-off. It has been happening for the last five quarters.
- We are now in the territory that 2.7%-2.9% band can be delivered. That is certainly the outlook. Comfortably, that should come through.
- As far as the margin is concerned, you asked about the margin, right? Margin, I think we are now in the territory that 2.7%-2.9% band can be delivered, I would say. That is certainly the outlook. Comfortably, that should come through.
- The write-off is on all loans, builder as well as IHL, which are provided for 100%. That means wherever there is a provision of 100%, these loans are eligible for write-off. So it would be a mix of both, not specifically builder loans.
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