Home First Finance’s net profit up 6.38% in Q4 FY23, ET RealEstate

June 24, 2023

NEW DELHI: Home First Finance Company has reported a growth of 6.38 per cent in its net profit during the quarter ended March 31, 2023. Its profit after tax stood at Rs 640.28 million in Q4 FY23 as against Rs 601.88 million it registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing.

The company’s total income stood at Rs 2,313.03 million in Q4 FY23, a growth of 48.19 per cent from Rs 1,560.86 million it recorded in the similar quarter last year.

The board of directors approved to offer, issue and allot in one or more tranches, non-convertible debentures (NCDs) for an amount not exceeding Rs 500 crore through private placement.

The board have also recommended a dividend on equity shares at the rate of Rs 2.60 per share (130%) of face value of Rs 2 each, for financial year ended March 31, 2023.

Manoj Viswanathan, MD & CEO of the company said, “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. HomeFirst’s disbursals momentum increased from Rs 2,031 crore in FY22 to Rs 3,013 crore in FY23, leading to asset under management (AUM) growth of 33.8% from Rs 5,380 crore to Rs 7,198 crore.

Our focus on early bucket collections has further progressed in FY23. 1+ DPD improved from 5.3% to 4.0% on year-on-year basis. 30+ DPD improved from 3.7% to 2.7% on year-on-year basis. Gross Stage 3 (GNPA) as per RBI circular dated 12 Nov 2021, improved from 2.3% to 1.6% on year-on-year basis. Prior to such classification, it stands at 0.9% (Mar 2022: 1.3%).

Digital adoption has further improved. 93% of our customers are registered on our app as on Mar 2023 compared to 91% in Dec 2022 & 80% in Mar 2022. Unique User Logins improved from 54% in Q4 FY22 to 57% in Q4 FY23. Service requests raised on app have improved from 83% to 91% on a year-on-year basis.

Q4 FY23 witnessed ROE of 14.4% vs 12.5% for Q4 FY22. Improvement in ROE was backed by strong NIMs (6.4% vs 5.4% y-o-y), optimal use of cash and judicious operating costs.”

As on March 31, 2023, its net-worth stood at Rs 18,173.39 million, debt-equity ratio was 2.65, total debts to total assets was 0.71, net profit margin was 28.69%, gross non-performing assets (NPAs) to loan assets was 1.61% and net NPAs to net assets was 1.07%. Outstanding borrowing of company as on March 31, 2023 is Rs 48,134.73 million, the company said in the regulatory filing.

During the quarter and year ended March 31, 2023, 1,70,833 and 3,83,064 equity shares respectively have been allotted to employees who have exercised their options under the approved employee stock option schemes.

The company witnessed quarterly disbursements of Rs 869 crore in Q4 FY23, registering year-on-year growth of 35.6% and 11.4% on quarter-on-quarter basis. Yearly disbursements of Rs 3,013 crore were recorded in FY23, registering year-on-year growth of 48.4%.

ECL provision as on March 2023 was Rs 58 crore; resulting in total provision to loans outstanding ratio at 1%; and the GNPA total provision coverage ratio (PCR) is at 59.5% in March 2023 vs 47.1% in March 2022 (total PCR without considering the impact of RBI circular is 104.8% in March 2023 vs 83.6% in March 2022).

Total borrowings including debt securities are at Rs 4,814 crore as on March 2023 up from Rs 3,467 crore as on March 2022. The company continues to carry a liquidity of Rs 1,802 crore as on March 2023. Cost of borrowings was at 7.4% in FY23, increased by 20 bps compared to 7.2% in FY22, the company said in a media release.

  • Published On May 2, 2023 at 06:00 PM IST

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