LIC Housing Finance Q4 Results: Profit rises 25% YoY

Mortgage lender LIC Housing Finance on Thursday posted a 25% year-on-year growth in net profit in the fourth quarter of fiscal year 2025 at ₹1,367.96 crore.  This is against a net profit of ₹1,090.82 crore in the corresponding quarter of the last fiscal year. The increase in profit was significantly aided by lower bad loans provisions. Provisions were at ₹109 crore in Q4 FY25, much lower than ₹428 crore in the corresponding period last year. Aggregate provisions for expected credit loss (ECL) as of March 31, 2025, were ₹4,899.03 crore, down from ₹6,270.06 crore in the previous year.

 Revenue and Margins

Operations revenue increased modestly, increasing 5% year-on-year to ₹7,283.33 crore in Q4 FY25 from ₹6,936.41 crore in Q4 FY24. But the net interest income (NII) dropped marginally by 3% at ₹2,166.44 crore during the fourth quarter ending March 2025 from ₹2,237.60 crore during the corresponding period a year ago.The net interest margin (NIM) for the quarter stood at 2.86%, down from the 3.15% in Q4 FY24. It is worth noting that the NIM showed improvement when compared to the third quarter of FY25.

Loan Disbursements

Overall loan disbursements for the fourth quarter showed a 5% rise year-on-year at ₹19,156 crore in Q4 FY25, from ₹18,232 crore in Q4 FY24. Much of this growth was led by the Individual Home Loan segment, whose disbursements grew 8% year-on-year to ₹15,383 crore. Project loan disbursements, on the other hand, showed a decrease, falling 42% year-on-year to ₹875 crore.

Asset Quality

Asset quality of the company seems to have increased, as the Stage 3 exposure at default has stood at 2.47% as of March 31, 2025. That is a decline from 3.31% as at March 31, 2024, as well as a drop from 2.75% as at December 31, 2024.

Share Performance

LIC Housing Finance shares closed at ₹624.95 on 15 May 2025, on NSE. The stock has given returns of 2.26% in the last 6 months but a negative return of -0.96% in the last 12 months. The stock is currently trading at ₹616.05, with a decline of 1.42%.

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