In-Depth Performance Analysis Of HDB Financial Services

The financial results for the third quarter of the financial year 2022-23 provide significant insights into the performance of HDB Financial Services, a leading player in the Indian financial industry. HDB has been making a name for itself in recent years and has emerged as a critical loan and asset finance provider in non-banking financial services. Moreover, the experts’ reviews have been advocating the investors’ attention on the HDB unlisted shares. Major reviews and guidance by leading financial advisors have chosen HDB financial services as one of the most promising emerging stocks. Moreover, they claim that the momentum for HDB financial services will likely continue.

HDB Financial Figures FY2023, A Comparative Study

We need a double-folded perspective to understand where HDB Financial Services is heading and its future standing in the stock market. There are two critical areas to speculate on here. Firstly, we need to investigate the performance of HDB Financial Services in the last year and compare it with the previous year’s reports. Subsequently, we would couple that with the market factors, prevalent trends, and economic predictions for the coming years. An integrated study like this will allow us to draw qualitative conclusions on the future of HDB Financial Services. 

Understanding the future of HDB Finance share price before investing in the stocks is essential. Moreover, HDB Financial Services is planning a merger and IPO, which we will briefly discuss.  

Also Read – HDFC Securities Ltd Vs. HDB Financial Services Ltd: Which One Makes A Good Investment Option

What Does Q3FY23 Financial Report Say For HDB Finance Service?

The loan and asset finance provider recorded growth on both a quarterly and yearly basis. If we compare the data from the last two quarters, it is clear to see that the total income of HDB finance services increased from Rs. 30,478 to Rs. 31,547 million. It is a significant increase from the last December quarter when the total income was only Rs. 28,045 million. The expanding company revenue directly reflects the increasing consumer base of HDB Finance Services. The sales kept increasing exponentially in June 2022 and September 2022 and continued in the same fashion in December 2022. 

QuarterlyNine MonthsAnnual
ParticularsDec 31, 2022Sep 30, 2022Dec 31, 2021Dec 31, 2022Dec 31, 2021Mar 31, 2022
Interest income22,57621,75820,45465,46162,68683,630
Sale of services6,7066,6765,82920,10317,14223,634
Other financial charges2,0001,8281,7005,6883,8845,690
Net gain on fair value changes26021476575230165
Net gain (loss) on derecognised financial instruments52(14)(43)(56)
Total Revenue from operations31,54730,47828,04591,82783,8991,13,063
Finance Costs9,2128,4668,22925,54225,50533,255
Impairment on financial instruments3,1323,5095,40410,62420,43924,657
Employee benefits expenses10,26110,0528,48230,36725,36035,004
Depreciation, amortisation and impairment292262247803744989
Others expenses1,9401,8711,6445,5494,1285,682
Total expenses24,83724,16024,00672,88576,17699,587
Profit before tax6,7106,3184,03918,9427,72313,476
Current tax1,5852,0652,2385,5394,2906,634
Deferred tax109(458)(1,240)(736)(2.411)(3,272)
Total tax expense1,6951,6079984,8031,8793,362
Net Profit for the period5,0154,7113,04114,1395,84410,114
Other Comprehensive Income (not of tax)(58)1992002004138
Total Comprehensive Income (after tax)4,9574,9103,24114,3395,84810,252

However, there has been no significant increase in the total expenses, which meant the increasing revenue directly led to increased profit. 

Share Price Overview: Solid Growth

HDB Financial Services is a subsidiary of the parent company HDFC Bank. HDFC Bank and HDB Financial Services have recorded substantial revenue and profit growth. Moreover, HDFC Bank shares have performed incredibly well in the share markets. The figure below depicts the share prices of HDFC Bank. HDFC Bank share price climbed to Rs. 1695 on April 13, 2023. 

HDFC Bank and HDB Financial Services have filed a request for the merger to SEBI, which was given the green light. Now the company is preparing for the coalition in the second or third quarter of the financial year 2023-24. 

Moreover, HDB Financial Services shares have also performed well in the unlisted market. Below is the share overview from the HDB finance report for Q3FY2023. 

QuarterlyNine Months Annual
Dec 31, 2022 Sep 30, 2022 Dec 31, 2021 Dec 31, 2022Dec 31, 2021 Mar 31, 2022 
a. Basic (in Rupees)6.345.963.8517.887.4012.81
b. Diluted (in Rupees)6.335.963.8517.877.4012.80
Face value per share (in Rupees)101010101010

Reasons To Invest In HDB Financial Services Stocks

The increasing demand for HDB Finance Service and HDFC Bank in the share markets makes them a fabulous investment choice for retail investors. The leading analysts predict that this trend of consistent price growth for HDB Finance Services and HDFC Bank in the share market will last long. The impending merger of the two entities has positive sides to it, and the company disclosed that it would start preparing for the IPO after the merger. 

To make substantial profits in the long term, it is recommended to invest early! Stockify is a safe and easy-to-use platform for stock purchases in India. Therefore, contact the professionals at Stockify and avail of their guidance to enjoy a hassle-free experience.

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Several leading financial advisors have selected HDB Financial Services as one of the most promising emerging stocks.

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