Housing Finance company Home First Finance Company India announced Q4FY24 & FY24 results: Financial Highlights: Growth momentum continues in FY24 with disbursements at Rs 3,963 crore growing by 31.5% YoY. AUM at Rs 9,698 crore grew by 34.7% on YoY; with an industry leading home loan mix of 86%. Leading ROE’s: FY24 15.5% (+200bps YoY) & Q4FY24 16.1% (+170bps YoY); Asset quality strong. Expanding distribution with 133 branches (+22 on YoY basis) across 13 states. Commenting on the performance Manoj Viswanathan, MD & CEO said, “We are happy to conclude FY24 on a strong base & we continue the growth momentum forward to FY25. This has been supported by the booming Indian economy and strong tailwinds which has a positive effect on the housing demand coupled with our differentiated business model allowing us to grow on a pan-India basis with robust risk-management processes. Disbursements at Rs 3963 crore, grew by 31.5% and AUM grew by 34.7%. Spreads remain healthy at 5.4%. PAT at Rs 306 crore grew by 33.9% on y-o-y basis leading to ROA of 3.8%. Delighted to deliver ROE of 15.5% for FY24 and Q4FY24 saw it higher at 16.1% even in a high interest rate environment. We continue to build distribution by simultaneously entering new markets and deepening our presence in existing markets. States of Uttar Pradesh, Madhya Pradesh and Rajasthan are emerging as large affordable housing markets and we have taken steps to strengthen our presence and expand distribution in these states. Overall, we have added 22 branches in FY24 and now have 133 physical branches. Including potential & digital branches, we now do business across 321 touchpoints across Tier 1 to Tier 5 markets in 13 states / UT of India. Our asset quality continues to be strong with a focus on early delinquencies 1+ DPD is at 4.2% (decline of 30 bps on q-o-q). 30+ DPD at 2.8% (decline of 20 bps on q-o-q). Gross Stage 3 (GNPA) is at 1.7% (flat on q-o-q). Prior to RBI classification circular of Nov’21, it stands at 1.1%. Our credit cost at 10bps (decline of 20 bps on q-o-q basis). Our overall collections remain strong and in Q4FY24; we have had considerable recoveries from previously written-off accounts contributing to these credit cost levels. We continue to maintain our 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 Mar’24. Unique User Logins was 53% in Q4FY24. Service requests raised on app was stable at 89%. In Q4FY24, we have processed 47% of sanctions via Account Aggregator route. 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 continue to stay focused on providing loans for affordable housing, led by distribution and use of technology, backed by diversified funding and strong risk management.” Result PDF
Housing Finance company Home First Finance Company India announced Q3FY24 results: Financial Performance: - AUM (Assets Under Management) reached Rs 9,014 crore, marking a significant YoY increase of 33.5% and a QoQ growth of 7.7%. - Disbursements stood at Rs 1,007 crore for Q3, showing a healthy YoY rise of 29.1%. - Total Income for the quarter was reported at Rs 301 crore, which signifies a YoY increase of 46.4%. - The company's Profit After Tax (PAT) for the quarter is Rs 79 crore, improving by 34.2% YoY. - Net worth as of December 2023 is Rs 2,032 crore, up from Rs 1,817 crore in March 2023 Asset Quality and Risk Management: - Gross Stage 3 assets (GNPA - Gross Non-Performing Assets) stand at 1.7%, showing a reduction of 10 basis points YoY and remaining stable QoQ. - The Credit Cost is maintained at 30 basis points, decreasing by 10 basis points both YoY and QoQ. Operational Efficiency: - The Spread on loans is reported at 5.3%, with a QoQ decrease of 20 basis points. - Cost to Income ratio is slightly higher at 35.9%, up by 60 bps since last year. - Return on Assets (ROA) is at 3.7%, with a 10 bps decrease from both the last quarter and the same quarter last year. - Return on Equity (ROE) shows a promising figure of 15.8%, demonstrating an increase of 20 bps QoQ. Distribution Growth: - The company expanded its branch network to 123 branches across 13 states/UT. - Total touchpoints for the company have risen to 305, up by 10 QoQ and 44 YoY. Capital and Borrowings: - Borrowings, including debt securities, stood at Rs 6,846 crore as of December 2023. - Liquidity remains strong at Rs 2,468 crore. - The cost of borrowings has risen to 8.2%, increasing by 10 bps QoQ. Commenting on the performance Manoj Viswanathan, MD & CEO said, “We are happy to continue the growth momentum in Q3FY24. HomeFirst’s performance has been strong across all operating and financial parameters. We delivered PAT growth of 34.2% on YoY & 6.1% on a QoQ basis leading to an ROE of 15.8% in a high interest rate environment. We believe the level of consistent and superior returns is a testimony to our strong risk management, use of right technology and scalability of our differentiated business model. We continue to build distribution by simultaneously entering new markets and deepening our presence in existing markets. States of Uttar Pradesh & Madhya Pradesh are emerging as large affordable housing markets and we have taken steps to strengthen our presence and expand distribution in these states. Overall, we have added 3 branches in Q3 and now have 123 physical branches. Including potential & digital branches, we now do business across 305 touchpoints across Tier 1 to Tier 5 markets in 13 states / UT of India. Digital adoption continues to be strong and a key area of our focus as we grow. 94% of our customers are registered on our app as on Dec’23. Unique User Logins was 54% in Q3FY24. Service requests raised on app was stable at 88%. We continue to stay focused on providing loans for affordable housing, led by distribution and use of technology, backed by diversified funding and strong risk management. We believe that given the tailwinds of the housing sector supported by overall economic growth momentum and 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.'" Result PDF
Home First Finance Company India announced Q2FY24 & H1FY24 results: 1. Financial Performance: - HomeFirst's Q2FY24 AUM at Rs ~84 billion, representing a growth of 33.3% YoY and 7.6% QoQ. - Disbursements in Q2FY24 amounted to Rs 959 crore, showing a strong YoY growth of 36.6% and a QoQ growth of 7.1%. - Total income for the quarter stood at Rs 278 crore, reflecting a YoY growth of 46.8%. - Profit after tax (PAT) for Q2FY24 was Rs 74 crore, marking a YoY growth of 36.9%. 2. Asset Quality: - The GNPA (Gross Stage 3) ratio for Q2FY24 was recorded at 1.7%, indicating a slight increase of 10 bps from the previous quarter. - Bounce rates improved to 14.2% from 15.0% QoQ. - 1+ DPD (Days Past Due) remained range bound at 4.5%. - 30+ DPD remained flat at 2.9% in Q2FY24, showing a decline of 40 bps YoY. 3. Distribution and Market Presence: - HomeFirst has a strong distribution network with 120 branches across 13 states/UTs. - The company added 7 branches in Q2FY24, further expanding its market presence. - Total touchpoints increased to 295, reflecting a growth of 46 from September 2022. 4. Borrowings and Capital Adequacy: - Total borrowings, including debt securities, stood at Rs 6,002 crore as of September 2023. - The company maintains a liquidity of Rs 2,617 crore as of September 2023. - Capital adequacy ratio (CRAR) is at 45.5%, with Tier I capital at 45.0%. Commenting on the performance, Manoj Viswanathan, MD & CEO, said, "Q2FY24 performance has been strong across all operating and financial parameters. We have delivered an ROE of 15.6% in an inflationary and peak interest rate environment. This level of consistent and superior returns is a testimony to our strong risk management, use of the right technology, and scalability of our model. We continue to build distribution by simultaneously entering new markets and deepening our presence in existing markets." Result PDF
Conference Call with Home First Finance Company India Ltd. Management and Analysts on Q1FY24 Performance and Outlook. Listen to the full earnings transcript.