Home First Finance Company Q2 Results for FY22

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.