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Housing Finance company Home First Finance Company India announced Q1FY25 results:
- Total Income at Rs 341 crore; YoY growth of 31.4%.
- PPOP stands at Rs 119 crore, growth of 21.9% on YoY basis.
- PAT at Rs 88 crore, up by 27.0% on YoY basis.
- ROA was maintained at 3.6%
- ROE at 16.3% increased by 20 bps on QoQ basis.
- AUM: Rs 10,478 crore, growth of 34.8% on YoY basis and 8.0% on QoQ basis.
- Disbursements of Rs 1,163 crore, YoY growth of 29.9% and 5.5% on QoQ basis
- Total borrowings including debt securities are at Rs 7,899 crore as on Jun’24. The company continues to carry a
liquidity of Rs 2,620 crore as on Jun’24. - Cost of borrowings at 8.3% increased by 30 bps on YoY basis.
Commenting on the performance Manoj Viswanathan, MD & CEO said: “I am happy to share with you that we have crossed the milestone of Rs 10,000 crore AUM. This achievement is a testament to HomeFirst’s commitment to excellence, driven by a differentiated business model with enhanced usage of technology driven solutions, high productivity standards, diversified funding and rigorous risk management practices.
Business momentum continues well into Q1FY25 with disbursal growth of 29.9% resulting in an AUM of Rs 10,478 crore with a YoY growth of 34.8%. Spreads are healthy at 5.2%. PAT at Rs. 88 Cr grew by 27.0% on YoY basis leading to ROA of 3.6%. We achieved an ROE of 16.3% in this quarter.
We have added 22 new touchpoints in this quarter, taking the total tally to 343. We have increased presence in 4 new districts taking the total coverage to 135 districts. The company plans to open 20-25 new physical branches in this financial year.
Our asset quality continues to be strong with a focus on early delinquencies.
- 1 DPD is at 4.5% (up by 30 bps on QoQ).
- 30 DPD at 2.9% (up by 10 bps on QoQ).
- Gross Stage 3 (GNPA) is at 1.7% (flat on QoQ). Prior to RBI classification circular of Nov’21, it stands at 1.3%.
- Our credit cost at 20bps (increased by 10 bps on QoQ basis). We continue to maintain our credit cost guidance of 30 to 40 bps.
Technology remains central to our strategy. Account aggregator adoption has become mainstream with an adoption rate of 41% amongst new approvals (36% in Q4FY24). Digital penetration is strong with 95% of our customers registered on our app. Digital fulfilment has reached 70% with the use of digital agreements and e-NACH mandates. 90% of service requests are raised on the mobile app.
We are confident to continue the growth momentum led by a strong economic environment, rising middle class population, expanding distribution network and differentiated business model. We are focused on building HomeFirst as a preferred brand name in the affordable housing finance industry, known for its extraordinary speed and service. While we celebrate the achievement of Rs 10,000 Cr AUM and progress towards the next milestone, we will remain anchored to our fundamental principles of responsible lending, strong governance, compliance and prudent risk management.”
FAQ’s on Home First Finance Company India Ltd Shares
