Share price of Gruh Finance, the subsidiary of HDFC Limited, rallied more than 6 percent intraday Monday after reporting good March quarter earnings due to fall in provisions.
Standalone net profit for the quarter ended March 2018 stood at Rs 130.5 crore, which grew by 18 percent over a year-ago.
Revenue from operations on standalone basis grew by 16 percent year-on-year to Rs 484.3 crore in January-March quarter 2018.
Provisions for bad loans dropped 94 percent to Rs 1.4 crore on sequential basis.
Gruh Finance has recommended the issue of bonus shares in the ratio of 1:1 (i.e. 1 equity share of Rs 2 each for each equity share held as on the record date to be fixed for the purpose) to the shareholders of the company.
The board also recommended dividend of Rs 3.30 per share of face value of Rs 2 each for the financial year ended March 31, 2018.
At 14:18 hours IST, the stock price was quoting at Rs 641.50, up Rs 29.10, or 4.75 percent on the BSE.moneycontrol