LIC Housing Finance Limited — PPTs, 15-05-2025: Investor Presentation

1. Financial Highlights:

LIC Housing Finance posted revenue of Rs. 7,283 Cr for Q4 FY25, up 5% YoY, with a loan portfolio of Rs. 3.08 lakh Cr growing 7%. Q4 PAT surged 25% to Rs. 1,368 Cr, while net interest income slipped 3% QoQ to Rs. 2,166 Cr. FY25 PAT rose 14% to Rs. 5,429 Cr. Net interest margin contracted to 2.73% from 3.08%, pressured by higher funding costs. Stage 3 asset ratio improved to 2.47% from 3.31%, with ECL provisions at Rs. 4,899 Cr. Return on average equity steadied at 16%, and EPS stood at Rs. 98.7 (face value Rs. 2). A dividend of Rs. 10 per share was declared.

2. Strategic Initiatives & Growth Drivers:

The firm operates 307 area offices and 355 marketing offices, supported by 2,542 employees. Incremental home loan disbursements grew 8% YoY, bolstered by Rs. 3,643 Cr in digital loan approvals. Focus remains on affordable housing and salaried segments, constituting 87% of customers, with rising ticket sizes. The diversified funding strategy helps maintain low costs via sources like non-convertible debentures and commercial paper.

3. Business Developments:

LIC Housing expanded distribution via wholly-owned subsidiary LICHFL Financial Services operating 45 branches. Investments in Direct Sales Agents and Customer Relations Associates aim to boost loan originations. The portfolio remains focused on higher-quality individual home loans, forming 85% of outstanding assets.

4. Market Position & Competitive Advantage:

A 35-year market leader with a Rs. 3 lakh Cr+ portfolio and over Rs. 5,000 Cr profit, LIC Housing holds a AAA rating and extensive pan-India presence, including Dubai. Its strong brand, diversified products, and backing from Life Insurance Corporation create a solid competitive moat.

5. Investor Implications:

Robust profit growth, improving asset quality, and loan book expansion signal positive growth potential. Margin compression and funding cost rise are execution risks to watch but are offset by prudent provisions and funding diversity. Consistent dividends support income investors, while digital adoption and distribution scale provide further growth avenues.