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." Result PDF
Home First Finance Company India announced FY23 results: Total Income at Rs 796 crore; YoY growth of 33.6% PPOP stands at Rs 317 crore, a growth of 26.0% on a YoY basis Adjusted PAT at Rs 228 crore, up by 31.1% from Rs 174 crore in FY22 Total CRAR at 49.4%. Tier I capital stands at 48.9% as on Mar’23 Networth as on Mar’23 is at Rs 1,817 crore vs Rs 1,574 crore as on Mar’22 Spread on loans stood at 5.7% in FY23, increase of 10bps over FY22 Total borrowings including debt securities are at Rs 4,814 crore as on Mar’23 up from Rs 3,467 crore on Mar’22. The company continues to carry liquidity of Rs 1,802 crore on Mar’23 Cost of borrowings at 7.4% in FY23, increased by 20 bps compared to 7.2% in FY22 Asset under Management (AUM) of Rs 7,198 crore, growth of 33.8% over Mar’22 Yearly disbursements of Rs 3,013 crore FY23, YoY growth of 48.4% Commenting on the performance Manoj Viswanathan, MD & CEO said, “FY23 year was a year of several notable milestones for the ccompany. We can now take pride in having served 1,00,000 customers since inception with total housing loans disbursed in excess of 10,000 crore. Our physical branch office distribution crossed 100 branches (111 branches as of 31 Mar, 2023) and disbursed more than Rs 3,000 crore in this financial year which is the highest ever since the commencement of business. This year also saw the entry of International Finance Corporation (a member of World Bank Group) as a lending partner to the Company with the issue of NCDs aggregating to Rs 280 Cr. We also received a “low risk” ESG rating from Morningstar’s Sustainalytics, a testament to our best-in-class business practices. 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 265 touchpoints (an increase of 65 from Mar’22 levels) across Tier 1, Tier 2 and Tier 3 markets in 13 states/ UT. HomeFirst’s disbursals momentum increased from Rs 2,031 in FY22 to Rs 3,013 crore in FY23, another high for HomeFirst, leading to AUM growth of 33.8% from Rs 5,380 crore to Rs 7198 crore. Our focus on early bucket collections has further progressed in FY23. 1+ DPD improved from 5.3% to 4.0% on YoY basis. 30+ DPD improved from 3.7% to 2.7% on YoY basis. Gross Stage 3 (GNPA) as per RBI circular dated 12 Nov 2021, improved from 2.3% to 1.6% on YoY basis. Prior to such classification, it stands at 0.9% (Mar’22: 1.3%). Digital adoption has further improved. 93% of our customers are registered on our app as on Mar’23 compared to 91% in Dec’22 & 80% in Mar’22. Unique User Logins improved from 54% in Q4FY22 to 57% in Q4FY23. Service requests raised on app have improved from 83% to 91% on a YoY basis. During FY23, Profit After Tax increased by 31% from Rs 174 crore to Rs 228 crore. ROE improved sharply by 170 bps to 13.5% in FY23 over FY22’s 11.8%. Q4FY23 witnessed ROE of 14.4% vs 12.5% for Q4FY22. Improvement in ROE was backed by strong NIMs (6.4% vs 5.4% YoY), optimal use of cash and judicious operating costs. We believe ROE’s can improve further as we scale and operating leverage benefits continue to flow through. Overall, FY23 was a very good year and we look forward to an even better FY24 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