Home First Finance Company India Ltd share Price

Home First Finance Company India announced Q1FY24 results:

• Q1FY24 ROE at 15%, with HL mix at 87%.
• Q1FY24 Disbursement at Rs 895 crore (35.4% YoY, 3.0% QoQ), broad-based growth across all markets.
• AUM at Rs 78 billion (33.3% YoY, 8.0% on QoQ). Asset quality sustains at pre-covid levels.

Commenting on the performance Manoj Viswanathan, MD & CEO said, “We stay focused on providing loans for affordable housing, led by distribution and use of technology, backed by diversified funding and strong risk management. We continue to expand our distribution in large affordable housing markets in States where we are already present, going deeper in a contiguous manner. We now do business across 282 touchpoints across Tier 1, Tier 2, and Tier 3 markets in 13 states/ UT. Disbursement in Q1 at Rs 895 crore was higher than in Q4, with a growth of 35.4% on a YoY basis and 3.0% on a QoQ basis, leading to an AUM growth of 33.3% to Rs 7,776 crore.

We witnessed a pass-through of rate hikes and an elevated interest rate environment. Our strong liability profile and timely availability of low-cost funding from NHB enabled us to contain the cost of borrowing. The competitive overall cost of borrowing coupled with a PLR increase of 50bps in Apr’23 helped expand spreads on a QoQ basis and sustain NIM on a QoQ basis, despite the increase in leverage. Spreads at 5.7% remain ahead of our guided levels of 5.25%.

Asset quality is at pre-covid levels and reflects marginal seasonality impact in Q1FY24.

• 1 DPD increased from 4.0% in Q4 to 4.3% in Q1 but showed a yoy decrease of 70 bps.
• 30 DPD increased from 2.7% in Q4 to 2.9% in Q1 but showed a yoy decrease of 60 bps.
• Gross Stage 3 (GNPA) is stable qoq at 1.6% but showing a yoy decline of 50 bps. Before the RBI classification circular of Nov’21, it stands at 1.0% up 10 bps from Q4.
• Our credit cost is at 40 bps for the quarter

PAT at Rs 69 crore was up 34.9% YoY and 8% QoQ. ROA holds steady at 3.9%. Q1FY24 ROE at 15% ( 220 bps YoY, 60 bps QoQ) is a testimony of our strong and agile business model.

Digital adoption continues to be strong and a key area of our focus as we grow. 93% of our customers are registered on our app as on Jun’23. Unique User Logins were 55% in Q1FY24. Service requests raised on the app were stable at 91%.

We believe that given the tailwinds of the housing sector supported by overall economic growth momentum and the strong execution mindset of the company, we will continue to deliver excellent results while staying true to our mission of being the “Fastest Provider of Home Finance for the Aspiring Middle Class, delivered with Ease and Transparency."

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