Q3FY2025 Results of HDB Financial Services

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HDB Financial Services Limited - Unaudited Financial Results and Related Disclosures (December 31, 2024)

Overall Purpose: HDB Financial Services Limited submits its Unaudited Financial Results, Limited Review Report, Security Cover Certificate, and Statement of Utilisation for the quarter and nine months ending December 31, 2024 to the BSE Limited and National Stock Exchange of India Limited, in compliance with SEBI regulations.

Key Highlights & Approvals:

The Board of Directors approved the Standalone and Consolidated Unaudited Financial Results on January 14, 2025, following a review by the Audit Committee.
Joint Statutory Auditors Kalyaniwalla & Mistry LLP and G. D. Apte & Co. submitted a Limited Review Report with an unmodified opinion for the same period.
HDB Financial Services Limited (“the Company”) is registered with the Reserve Bank of India as a Non-Banking Financial Company.
The Reserve Bank of India has categorized the company as Upper Layer (NBFC-UL) under Scale Based Regulations.

Financial Results Summary (Standalone & Consolidated):

Revenue from Operations:
- Interest Income: Increased YoY, for the nine months ended December 31, 2024 was Rs. 102,125 million compared to Rs 80,986 million.
- Sales of Services: Increased YoY, for the nine months ended December 31, 2024 was Rs. 9,134 million compared to Rs 16,435 million.
Expenses:
- Finance Costs: Increased YoY, for the nine months ended December 31, 2024 was Rs 47,397 million compared to Rs 34,874 million.
- Impairment on financial instruments: Increased YoY, for the nine months ended December 31, 2024 was Rs 14,792 million compared to Rs 8,258 million.
Profitability:
- Profit Before Tax: Increased, but not significantly, YoY to Rs 22,236 million from Rs 24,229 million for the nine months ended December 31, 2024.
- Net Profit for the period: Increased, but not significantly, YoY to Rs 16,450 million from Rs 18,046 million for the nine months ended December 31, 2024.
Earnings per share: Increased YoY, for the nine months ended December 31, 2024, the basic EPS was Rs 20.73 compared to Rs 22.80

Key Financial Ratios & Disclosures:

Debt-Equity Ratio: Increased from 5.59 (Dec 31, 2023) to 5.81 (Dec 31, 2024).
Net Worth: increased from Rs. 119,516 million (Dec 31, 2023) to Rs. 144,076 million (Dec 31, 2024)
Current Ratio: Remained approximately constant YoY, at 1.15 (Dec 31, 2024).
Capital Adequacy Ratio: Increased from 17.99% (Dec 31, 2023) to 19.20% (Dec 31, 2024).
Gross Stage 3 Ratio: Maintained around 2.25% (Dec 31, 2024).
Liquidity Coverage Ratio: Maintained around 157% (Dec 31, 2024).

Segment Reporting:

The company operates primarily in two segments: Lending Business and BPO Services.
Lending Business accounted for the majority of revenue, at Rs. 111,208 million for the nine months ended December 31, 2024.
The business operations of the Company are primarily concentrated in India

Security Cover & Asset Cover:

As of December 31, 2024, security cover for secured non-convertible debt securities stood at 1.09, and asset cover for unsecured non-convertible debt securities was 2.33.
Details provided on assets used as security, including immovable property and receivables. The market value of Rs. 3 million of the immoveable property is on the basis of certified valuation done on April 13, 2024

Initial Public Offering (IPO):

The company has filed a Draft Red Herring Prospectus (DRHP) with SEBI, BSE, and NSE for an IPO.
The IPO consists of a fresh issue of equity shares up to Rs. 2,500 crore and an offer for sale of equity shares up to Rs. 10,000 crore by HDFC Bank Limited.

Transfer of Loan Exposures:

The company did not transfer any Non-Performing Assets or loans not in default during the quarter ended December 31, 2024.

Statement of Utilisation of Issue Proceeds:

The proceeds of Non-Convertible Securities issued during the quarter ending December 31, 2024, have been used for the purpose stated in the offer documents.
There is no deviation/variation in the use of issue proceeds and no further explanation is needed.

Auditors' Review:

The auditors have performed a limited review of both the standalone and consolidated financial results and express an unmodified opinion.

Certifications & Signatures: The document is signed by Ramesh G., Managing Director & CEO, and countersigned by Jaykumar Shah (Chief Financial Officer), with attestations from the auditors.

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