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HomeFirst Shows Strong Growth in Q4 FY21

The company registered record quarterly disbursals of Rs 452 crore in fourth quarter of 2020-21

HomeFirst, a technology driven affordable housing finance company that targets first time buyers in low and middle income groups got listed in February 2021 on Bombay Stock Exchange & National Stock Exchange of India.

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 The company also registered record quarterly disbursals of Rs 452 crore in fourth quarter of 2020-21. This is further enhanced by the fact that this growth is broad based across all our markets. The Southern markets now contribute to more than 30 per cent of our disbursals. 

“Our results for the fourth quarter of 2020-21 have exceeded our forecasts. This year, we have recorded the highest PAT of Rs 100 crore in the history of the company, a growth of 25.9 per cent over 2019-20 in spite of challenges posed by the Covid pandemic,” commented Manoj Viswanathan, MD & CEO. 

 Capital raised through IPO in Q4 FY21: 

The company’s tier 1 capital has raised Rs 265 crore, which stands at 55.2 per cent as of March 2021. The net worth as of March 2021 is at Rs1,381 crore vis-à-vis Rs 933 crore as on March 2020. 

Financial Performance: 

Total Income of 2020-21 stands at Rs 489 crore; y-o-y growth of 16.6 per cent from Rs 420 crore in 2019-20. Income of fourth quarter of 2020-21 at Rs 136  crore; y-o-y growth of 28.1 per cent from Rs 106 Crs in Q4 FY20. 

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It recorded a sequential growth of 22.7 per cent over Q3 FY21 

FY21 PAT crosses Rs 100 crore ; up by 25.9 per cent y-o-y. 

Q4 FY21 PAT at Rs 31 crore; is up by 150.8 per cent y-o-y from Rs 12  crore in fourth quarter of 2019-20 and up by 96.6 per cent q-o-q from Rs 16 crore in Q3 FY21 

Asset under Management (AUM): 

It had a growth of 14.4 per cent over FY20 

Sharp focus on housing loans that contribute 92.4 per cent of AUM and EWS / LIG category that forms 75 per cent of the  customer base 

Collection Efficiency: 

Collection Efficiency and Bounce Rates showing improving trend q-o-q 

Collection Efficiency has improved further from 97.6 per cent  in December 2020 to 98.5 per cent in Mar'21. Bounce rates have  improved from 20.1 per cent in third quarter of 2020-21 to 17.3 per cent in fourth quarter of 2021 

Asset Quality: 

Gross Stage 3 is at 1.8 per cent and Net Stage 3 is at 1.2 per cent with zero restructuring 

30 DPD at 4.1 per cent stable q-o-q and 1 DPD has improved significantly from 7.5 per cent in Q3 FY21 to 6.2 per cent in   Q4 FY21 

Distribution: 

As on March 2020-21, the company has 72 branches with presence in 11 States and 1 Union Territory

Borrowings: 

Total borrowings including debt securities are at Rs 3,054 crore as on March 2021 from Rs 2,494 crore as on March20.

Liquidity raised in FY21 (excluding equity) is Rs 1,821 crore

Cost of borrowings reduced further from 8.0 per cent in Q3 FY21 to 7.4 per cent in Q4 FY21. It is lower by 120 bps compared  to Q4 FY20 which stood at 8.6 per cent

Provisions: 

 ECL provision as on March 2021 is Rs 46 crore; resulting in total provision to loans outstanding ratio at 1.4 per cent; and the  Stage 3 provision coverage ratio is at 74.4 per cent

Spread: 

Spread on loans stood at 5.0 per cent in 2020-21 compared to 4.1 per cent in 2019-20. The fourth quarter of 2020-21 stood at 5.4 per cent vs 4.5 per cent in fourth quarter of 2019-20 and 5.0 per cent in the third quarter of 2020-21.  

Particulars 

Q4FY21 

Q4FY20 

YoY 

FY21 

FY20 

YoY

AUM (INR Crs)^

4141 

3618 

+14.4% 

4141 

3618 

+14.4% 

Disbursement (INR Crs)

452 

347 

+30.4% 

1097 

1618 

-32.2% 

Total Income (INR Crs)

136 

106 

+28.1% 

489 

420 

+16.6% 

PAT (INR Crs)

31 

12 

+150.8% 

100 

80 

+25.9% 

Spread (%) *

5.4% 

4.5% 

+90 bps 

5.0% 

4.1% 

+90 bps

ROA (%) 

2.9% 

1.5% 

+140 bps 

2.5% 

2.7% 

-20 bps

Gross Stage 3 (%) ^

1.8% 

1.0% 

+80 bps 

1.8% 

1.0% 

+80 bps

Cost to Income (%) 

38.0% 

48.7% 

-1070 bps 

39.0% 

45.8% 

-680 bps

“In 2020-21 we navigated through the pandemic to record some remarkable milestones. While the battle to overcome Covid 2.0 rages on, in India; we stand resilient, prepared and committed to support our societies at every step, to facilitate and participate in the inevitable recovery,” added Viswanathan. 

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