LIC Housing Finance reported a 42.31% growth in Q1 FY24 net profit at Rs 1,319.04 crore, up from Rs 926.89 crore in the same period last fiscal. The company's consolidated total income grew by 27.47% to Rs 6,759.13 crore. T. Adhikari was appointed as the managing director and CEO. The firm aimed to expand its branch network and observed growth in all segments. As of June 30, 2023, the company's net worth was Rs 25,901.43 crore, with a debt-equity ratio of 9.54. Housing demand is resilient amid higher rates. The RBI has hiked rates by 250 basis points since May 2022, coinciding with a 4.81% inflation rate in June.
LIC Housing Finance has witnessed a remarkable surge of 42.31% in its net consolidated profit for the quarter ending June 30, 2023. Notably, its profit after tax reached Rs 1,319.04 crore in Q1 FY24, marking a substantial increase compared to Rs 926.89 crore in the corresponding quarter of the previous fiscal year, as stated in a BSE filing. This notable increase stands in stark contrast to the Rs 926.89 crore recorded during the same quarter in the previous fiscal year. Furthermore, the company's net consolidated total income has also undergone a substantial transformation, displaying a robust growth rate of 27.47%. The financial landscape shifted from Rs 5,302.50 crore in a similar quarter of the preceding year to an impressive Rs 6,759.13 crore.
The board of directors has strategically appointed T. Adhikari, who was previously an additional director, to the coveted role of managing director and chief executive officer. This strategic move takes effect on August 3, 2023, and has a tenure of up to five years. Adhikari, reflecting on the company's ambitions, expressed that its focus for this fiscal year centers on expanding its branch network into novel territories, catering to escalating demand. Across all segments, growth is a consistent theme. Despite prevalently high-interest rates, business indicators remain decidedly positive. We anticipate the culmination of past efforts in the current year, cementing our stature as the foremost housing finance company in India.
As of June 30, 2023, the company's net worth achieved a noteworthy milestone, soaring to a commendable Rs 25,901.43 crore. These accomplishments gain further emphasis through notable financial ratios. The debt-equity ratio stands at a robust 9.54, while the ratio of total debts to total assets registers at 0.89. The operating margin is 24.44%, and the net profit margin is 19.62%. Amidst these numbers, gross non-performing assets (NPA) are at 4.98%, with net NPA at 2.99%. Next, attention shifts to LIC Housing Finance's financial terrain, where total expenses witnessed a remarkable 23% surge in the quarter. A 23% surge in finance costs, amounting to Rs 4,494 crore, notably contributed to this. Simultaneously, interest income witnessed substantial growth of 28%, culminating at Rs 6,704 crore.
In an intriguing twist, India's housing demand has surged despite higher interest rates and home prices in the post-pandemic period. The growing middle class has displayed a keen interest in real estate investments. Against this backdrop, the Reserve Bank of India (RBI) has undertaken a series of significant moves. Key interest rates have seen a 250-basis point increase since May 2022, with intermittent pauses. Notably, the trajectory of events recently experienced a shift as June retail inflation escalated to 4.81%, thus concluding a four-month period of decline.
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