Housing Finance company Home First Finance Company India announced Q2FY25 results Financial Highlights: Total Income at Rs 374 crore; YoY growth of 34.6%. PPOP stands at Rs 126 crore, growth of 20.7% YoY. PAT at Rs 92 crore, up by 24.1% YoY. ROA is at 3.4%. ROE at 16.5% increased by 20 bps QoQ. Other Highlights: Distribution: The Company has 142 branches with presence in 13 States / UT. Total touchpoints increased to 351 (+8 from Jun’24 and +56 from Sep’23). Q2FY25 Disbursements: Disbursements of Rs 1,177 crore, YoY growth of 22.7% basis. Asset under Management (AUM): Rs 11,229 crore, growth of 34.2% on YoY basis and 7.2% on QoQ basis. Focus on housing loans that contribute 85% of AUM. EWS / LIG category that forms ~62% of the customer base. Asset Quality: Bounce rates range-bound. Oct’24 witnessed bounce rate of 15.6%. 1+ DPD is at 4.5% (flat on QoQ). 30+ DPD at 2.8% (decrease of 10 bps on QoQ). Gross Stage 3 (GNPA) at 1.7%. Prior to RBI classification circular of Nov’21, it stands at 1.3%. Our credit cost is at 20bps for the quarter. Provisions: ECL provision as on Sep’24 is Rs 79 crore; resulting in total provision to loans outstanding ratio at 0.8%; and the GNPA to total provision coverage ratio (PCR) is at 48.0% in Sep’24 vs 52.3% in Sep’23. Borrowings: Total borrowings including debt securities are at Rs 8,867 crore as on Sep’24. The company continues to carry a liquidity of Rs. 3,262 crore as on Sep’24. Cost of borrowings at 8.4% increased by 10bps QoQ. Spread: Ex-CL Spread on loans stood at 5.3% in Q2FY25, increase of 10bps QoQ. Capital Adequacy: Total CRAR at 36.4%. Tier I capital stands at 36.0% as on Sep’24. Networth as on Sep’24 is at Rs 2,289 crore vis-a-vis Rs 2,188 crore as on Jun’24. Manoj Viswanathan, MD & CEO, Home First Finance Company India said: “We are pleased with the company’s strong performance during the quarter. We continue to expand deeper into our existing markets with the addition of 9 branches and 8 touch points in Q2 taking the total branch count to 142 branches and touch point count to 351 touch points across 138 districts in 13 states/UTs. Disbursements grew by 22.7% YoY, to an all time high of 1,177 crore resulting in an AUM of Rs. 11,229 crore with a growth of 34.2% YoY. Employee strength has grown from 1249 in Mar’24 to 1642 in Sep’24 with the objective of driving further expansion. Our funding channels have expanded well with addition of 2 banks in Q2 and a first drawdown has been completed; out of the sanctioned USD 75 million from US Development Finance Corporation (DFC). The DFC proceeds will be utilized to provide affordable housing and mortgage financing to women borrowers thereby advancing gender equity in India. Spreads ex-co-lending moved up to 5.3% (+10bps QoQ) as a result of increase in PLR effective 1 st August. PAT at Rs. 92 crore grew by 24.1% YoY leading to ROA of 3.4%. We achieved an ROE of 16.5% in this quarter. The continued improvement in our return on equity reflects our focus on sustainable growth, operational efficiency and strong credit quality. Our asset quality continues to be strong with a focus on early delinquencies. 1+ DPD is at 4.5% (flat on QoQ basis). 30+ DPD at 2.8% (decrease of 10 bps on QoQ basis). 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 (decreased by 20 bps on YoY and remained flat on QoQ basis). We continue to maintain our conservative credit cost guidance of 30 to 40 bps. Digital adoption continues to be strong and a key area of our focus as we grow. 95% of our customers are registered on our app as on Sep’24. Unique User Logins were 50% in Q2FY25. Service requests raised on app was at 89%. During the quarter, the Ministry of Housing and Urban Affairs has released the initial operational guidelines for Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY-U 2.0). This scheme aims to address the housing needs of 1 crore economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) individuals seeking affordable housing. This revamped scheme will provide an impetus to the growth of the affordable housing segment. We remain focused on building HomeFirst as a preferred brand name in the affordable housing segment, renowned for its speed and service. As we move forward with the support of diverse funding sources and effective risk management, we remain committed to provide loans for affordable housing, driven by technology and a strong execution mindset. We will continue to deliver strong 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.” Result PDF
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.” Result PDF