Investor Presentaiton
MD & CEO Commentary on Q1 FY24 Performance
Manoj Viswanathan
Managing Director and CEO
MD Commentary
"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 Cr was higher than Q4, with a growth of 35.4% on y-o-y basis and 3.0% on q-o-q basis, leading to an AUM
growth of 33.3% to Rs 7,776 Cr.
We witnessed pass through of rate hikes and 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. Competitive overall cost of borrowing coupled with PLR increase of 50bps in
Apr 23 helped expand spreads on q-o-q basis and sustain NIM on q-o-q basis, despite 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. Prior to RBI classification circular of Nov'21, it stands at 1.0% up 10 bps from Q4.
Our credit cost is at 40bps for the quarter.
PAT at Rs. 69 Cr was up 34.9% y-o-y and 8% q-o-q. ROA holds steady at 3.9%. Q1FY24 ROE at 15% (+220 bps y-o-y, +60 bps q-o-q) is a testimony of our strong and agile business
model.
Digital adoption continues to be strong and an key area of our focus as we grow. 93% of our customers are registered on our app as on Jun'23. Unique User Logins was 55% in
Q1FY24. Service requests raised on app was stable at 91%.
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."
Home First Finance Company India Ltd. Investor Presentation - Q1 FY24
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