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