Home First Finance Q4 net profit jumps 31% to ₹84 crore, NII up 22% to ₹137 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Affordable housing financier Home First Finance Company India Ltd on Wednesday (May 8) reported a 30.5% year-on-year (YoY) jump in net profit at ₹83.5 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter, Home First Finance Company posted a net profit of ₹64 crore, the company said in a regulatory filing. The company’s revenue from operations increased 37.9% to ₹3,127.6 crore as against ₹2,268.4 crore in the corresponding period of the preceding fiscal.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 22.4%, coming at ₹136.8 crore against ₹111.8 crore in the corresponding quarter of FY23.

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For FY24, Home First Finance witnessed a surge in disbursements, recording a total of ₹3,963 crore for the fiscal year 2024, marking a year-on-year growth of 31.5%. The Asset under Management (AUM) for Home First Finance stood at ₹9,698 crore, reflecting a year-on-year growth of 34.7%.

Notably, housing loans continue to be the primary focus area for Home First Finance, contributing 86% to the total AUM. The Expected Credit Loss (ECL) provision as of March 2024 stood at ₹71 crore, resulting in a total provision to loans outstanding ratio of 0.9%.

Furthermore, the Gross Non-Performing Assets (GNPA) to Total Provision Coverage Ratio (PCR) improved to 50.9% in March 2024. Home First Finance’s total borrowings, including debt securities, amounted to ₹7,302 crore as of March 2024.

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Despite an increase in the cost of borrowings to 8.2%, representing an 80 basis points rise year-on-year, the company maintains a healthy liquidity position, with ₹2,055 crore in liquidity reserves as of March 2024.

Furthermore, Home First Finance demonstrates robust capital adequacy, with a Total Capital to Risk-weighted Assets Ratio (CRAR) of 39.5% and Tier I capital at 39.1% as of March 2024. The company’s net worth stood at ₹2,121 crore.

The results came after the close of the market hours. Shares of Home First Finance Company India ended at ₹895.05, up by ₹16.30, or 1.85% on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow