Home First Finance Company Q2 Results for FY22

26 Oct, 2021 09:55 IST|Sakshi Post

Strong disbursements at INR 515 Crs (highest ever), Gross Stage 3 improved by 20 bps AUM of INR 4,617 Crs, growth of 23.8% on y-o-y basis

New Independent Directors appointed to guide company’s future expansion

Net profit is up by 213% y-o-y, and 27.8% q-o-q

Disbursements of INR 515 Crs in Q2 FY22, y-o-y growth of 111.9%, q-o-q 69.1%

Key Highlights for Q2 FY22:

Asset under Management (AUM):

  • INR 4,617 Crs, growth of 23.8% over Q2 FY21.
  • Sharp focus on housing loans that contribute 92% of AUM and EWS / LIG category that forms ~77% of the customer base.

Distribution:

  • As on Sept'21, the Company has 72 branches with presence in 12 States and 1 Union Territory.
  • Business commenced in 14 new branch locations. In addition, 10 new digital branches have been launched taking the total number of touchpoints to 161.

Disbursements:

  • Disbursements of INR 515 Crs in Q2 FY22, y-o-y growth of 111.9%.

Asset Quality:

  • Bounce rates have improved to 15.0% in Oct’21 and 16.5% in Q2FY22 from 18.3% in Q1 FY22.
  • 1+ DPD improved from 8.9% to 7.6% on q-o-q basis.
  • 30+ DPD improved from 5.8% to 5.2% on q-o-q basis.
  • Gross Stage 3 is at 1.7% and Net Stage 3 is at 1.2%
  • 0.3% of POS restructured in Q2 FY22. Total Restructuring 2.0 at 0.8% as at Sep’21.

Provisions:

  • ECL provision as on Sep'21 is INR 49.6 Crs; resulting in total provision to loans outstanding ratio at 1.3%; and the Stage 3 provision coverage ratio is at 77.4%.

Borrowings:

  • Total borrowings including debt securities are at INR 3,075 Crs as on Sep’21 up from INR 2,637 Crs as on Sep'20. The company continues to carry a liquidity of INR 1,400 Crs as on Sep’21.
  • Cost of borrowings reduced further from 7.2% in Q1 FY22 to 7.1% in Q2 FY22. It is lower by 120 bps compared to Q2 FY21 which stood at 8.3%.

Spread:

  • Spread on loans stood at 5.6% in Q2 FY22 compared to 5.5% in Q1 FY22 and 4.8% in Q2 FY21.

Capital Adequacy:

  • Total CRAR at 56.4%. Tier I capital stands at 55.2% as on Sep’21.
  • Networth as on Sep’21 is at INR 1463 Crs vis-à-vis INR. 988 Crs as on Sep’20.

Financial Performance:

  • Q2 FY22 Total Income at INR 146 Crs; y-o-y growth of 34% from INR 109 Crs in Q2 FY21, sequential
  • increase of 3.1% over Q1 FY22 of INR 142 Crs.
  • Q2 FY22 PAT at INR 45 Crs, sequentially up by 27.8% from INR 35 Crs in Q1 FY22.
     
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