Investor Presentaiton

4 furtisments HELYEL Home First Finance Company India Ltd. HDFC securities 20 Click. Invest. Grow. YEARS Even after high liquidity situation, the margin improved to 4.9% compared to 4.7% QoQ. This was due to better borrowing cost management (cost of borrowings 7.2% vs 7.4% QoQ). Another noteworthy improvement was Cost to income ratio at 32.1% (-595 bps QoQ), due to lower opex growth. Opex to AUM stood at 2.5% for the quarter, lower by 40bps on QoQ basis. Management has informed that they are looking to reduce the liquidity in next couple of quarters, which will improve NIMS further. Branch expansion strategy could increase the cost burden, but continuous focus on technology could result in declining opex trend. Asset Quality The non-performing assets increased during the quarter due to COVID-19 second wave and subsequent lock downs. GNPA were at 1.9% compared to 1.8% QoQ and 1.0% YoY, while NNPA were at 1.4% compared to 1.2% QoQ and 0.7% YoY. Total provision to loan outstanding ratio stood at 1.4%. 30+DPD (Stage 2 at 1.9% and Stage 3 at 3.8%) rose to 5.8% from 4.1% QoQ and DPD 1+ was increased to 8.9% in Q1FY22 from 6.2% in Q4FY21. The restructuring of loans was at 0.6% in Q1FY22. Management has indicated that with the normalization of collections and business momentum, DPD 1+ print should gradually approach its pre-covid range of 3-5% and they are looking to improve its Stage 3 assets by 10 bps every month for the next 2 to 3 quarters (lead reach to <1%). The collection efficiency level was also impacted in Mid-April to May and from June onwards it started to improve. 6.0% 5.0% 4.0% 3.0% DPD 30+ remains elevated 1.8% 1.6% 1.8% 1.9% 2.0% 3.8% 0.8% 1.0% 1.0% 0.6% 2.3% 2.5% 2.3% 1.0% 0.9% 0.8% 0.9% 0.9% 0.5% 0.4% 0.0% FY18 FY19 FY20 FY21 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Stage 2 Stage 3 Collection efficiency trending back to normal levels Apr-20 72.5% May-20 64.4% Jun-20 78.4% Jul-20 84.6% Aug-20 94.3% Sep-20 99.8% Oct-20 96.3% Nov-20 %9'96 Dec-20 97.6% Jan-21 97.8% Feb-21 97.7% Mar-21 98.5% Apr-21 94.7% May-21 94.0% Jun-21 97.6% RETAILRESEARCH ETAILRES FRET

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