Housing Finance company Home First Finance Company India announced Q3FY25 results Total Income at Rs 407 crore; YoY growth of 35.4%. PPOP stands at Rs 140 crore, growth of 27.2% YoY. PAT at Rs 97 crore, up by 23.5% YoY. ROA is at 3.4%; flat QoQ. ROE at 16.6% increased by 10 bps QoQ. Distribution: The Company has 149 branches with presence in 13 States / UT. Total touchpoints increased to 359 (+8 from Sep’24 and +54 from Dec’23). Q3FY25 Disbursements: Disbursements of Rs 1,193 crore, YoY growth of 18.4% basis. Asset under Management (AUM): Rs 11,949 crore, growth of 32.6% on YoY basis and 6.4% on QoQ basis. Focus on housing loans that contribute 84% of AUM. EWS / LIG category that forms ~61% of the customer base. Asset Quality: ???????Bounce rates range-bound. Jan’25 witnessed bounce rate of 16.0%. 1+ DPD is at 4.8% (increase of 30 bps on QoQ). 30+ DPD at 3.1% (increase of 30 bps on QoQ). Gross Stage 3 (GNPA) at 1.7%. Prior to RBI classification circular of Nov’21, it stands at 1.4%. Our credit cost is at 30bps for the quarter. Provisions: ECL provision as on Dec’24 is Rs 84 crore; resulting in total provision to loans outstanding ratio at 0.8%; and the GNPA to total provision coverage ratio (PCR) is at 47.3% in Dec’24 vs 52.4% in Dec’23. Borrowings: Total borrowings including debt securities are at Rs 9,213 crore as on Dec’24. The company continues to carry a liquidity of Rs 3,486 crore as on Dec’24. Cost of borrowings at 8.4% (flat on QoQ basis). Spread: Ex-CL Spread on loans stood at 5.2% in Q3FY25, decrease of 10bps QoQ. Capital Adequacy: Total CRAR at 33.1%. Tier I capital stands at 32.7% as on Dec’24. Networth as on Dec’24 is at Rs 2,408 crore vis-à-vis Rs 2,289 crore as on Sep’24. Manoj Viswanathan, MD & CEO said: “We are delighted to report another quarter of strong performance. Our AUM grew to Rs 11,949 crore, reflecting a robust YoY growth of 32.6% and QoQ growth of 6.4%. PAT increased by 23.5% on a YoY basis to Rs 97 crore leading to RoA of 3.4%. We achieved an ROE of 16.6% in Q3FY25; in a high-interest rate environment. The continued improvement in our return on equity reflects our focus on sustainable growth, operational efficiency and strong credit quality. Our strong liability profile and timely availability of competitive cost of borrowing enabled us to contain the cost of borrowing. We further expanded our network, adding 7 branches and 8 touch points, taking our total branch count to 149 and touchpoints to 359. Employee strength has grown from 1,249 in Mar’24 to 1,704 in Dec’24 with the objective of driving further expansion. To enable further support of the vision of the company and achieve our medium-term ambition of AUM of Rs 20,000 crore by Mar’27, the Board has also passed an enabling resolution to raise equity capital into the company of upto Rs 1,250 crore. This reflects a strong confidence in our ability to drive our growth plans and gain market share in the affordable housing finance segment. Our asset quality continues to be strong with a focus on early delinquencies. 1+ DPD is at 4.8% (increase of 30 bps on QoQ). 30+ DPD at 3.1% (increase of 30 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 1.4%. Our credit cost at 30bps (remained flat on YoY and increased by 10 bps on QoQ basis). We continue to maintain our conservative credit cost guidance of 30 to 40 bps. Technology remains central to our strategy. Digital adoption continues to be strong and a key area of our focus as we grow. Account aggregator adoption has improved to 61% amongst new approvals. Digital fulfillment has reached ~80% with the use of digital agreements and E-NACH mandates. 96% of our customers are registered on our app as on Dec’24 and 88% of Service requests being raised on the app. To further our commitment to the vision of "Housing for All," we are proud to share our partnership with MoHUA and NHB to spearhead the ISS vertical of the PMAY initiative. As part of this collaboration, we have successfully conducted initial pilot projects in our regions. At HomeFirst, we remain steadfast in our dedication to making this initiative a resounding success. Our S&P; Global ESG Score has improved significantly from 34 in FY23 to 45 in FY24, reflecting our unwavering dedication to environmental, social, and governance excellence. This remarkable progress underscores our commitment to sustainable business practices, fostering a positive impact on the environment, empowering communities, and maintaining the highest standards of governance. We are excited about the opportunities ahead, especially with the continued push for affordable housing under government initiatives like PMAY-U 2.0. We remain committed to our mission of providing fast, transparent and efficient home finance solutions to the aspiring middle class. Result PDF
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
