Home First Finance’s net profit up 34.89% in Q1 FY24, ET RealEstate

August 27, 2023

NEW DELHI: Home First Finance Company India has reported a growth of 34.89 per cent in its net consolidated profit during the quarter ended June 30, 2023. Its profit after tax stood at Rs 69.12 crore in Q1 FY24 as against Rs 51.24 crore it registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing.

The company’s net consolidated total income stood at Rs 259.80 crore in Q1 FY24, a growth of 53.42 per cent from Rs 169.34 crore it recorded in the similar quarter last year.

Manoj Viswanathan, MD & CEO of the company said, “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%.”

As on June 30, 2023, the company’s net worth stood at Rs 1,867.97 crore, debt-equity ratio was 3.01, total debts to total assets was 0.74, net profit margin was 26.61%, gross non-performing assets (NPAs) was 1.64% and net NPAs was 1.14%, it said in the regulatory filing.

Disbursement of the company stood at Rs 895 crore, up 35.4% year-on-year in Q1 FY24, asset under management (AUM) was at Rs 7,776 crore, up by 33.3% year-on-year.

ECL provision as on Jun 2023 is Rs 62 crore; resulting in total provision to loans outstanding ratio at 0.9%; and the GNPA total provision coverage ratio (PCR) is at 57.1% in June 2023 vs 45.8% in June 2022. Total borrowings including debt securities were at Rs 5,626 crore as on June 2023 up from Rs 3,780 crore as on June 2022.

The company continues to carry a liquidity of Rs 2,092 crore as on June 2023. Cost of borrowings as at 8% in Q1 FY24, increased by 10 bps compared to 7.9% in Q4 FY23. Spread on loans stood was at 5.7% in Q1 FY24, increase of 20bps over Q4 FY23.

  • Published On Jul 27, 2023 at 05:15 PM IST

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