Home First Finance Company , a prominent player in the Indian financial services sector, has reported a substantial increase in its financial performance for the first quarter of the fiscal year.

Strong Profit Growth

The company announced a net profit of 1.19 billion rupees for Q1, marking a significant year-over-year increase of 35% from 877.7 million rupees in the same period last year. This robust growth in profitability underscores the company's effective strategies and operational efficiency.

Revenue Expansion

Alongside the impressive profit growth, Home First Finance Company also reported a substantial increase in revenue. The company's revenue for Q1 stood at 4.54 billion rupees, up from 3.36 billion rupees in the corresponding quarter of the previous year. This represents a year-over-year growth of approximately 35%, mirroring the pace of profit increase.

Financial Performance Overview

To better illustrate the company's financial progress, here's a comparison of the key metrics:

The parallel growth in both revenue and net profit suggests that Home First Finance Company has maintained its operational efficiency while expanding its business activities.

This strong financial performance indicates Home First Finance Company's resilience and adaptability in the dynamic financial services landscape. The company's ability to significantly increase both its top-line and bottom-line figures year-over-year is likely to be viewed positively by investors and market analysts.

As the fiscal year progresses, stakeholders will be keen to observe if Home First Finance Company can maintain this growth trajectory and continue to strengthen its market position in the competitive financial services sector.

Home First Finance Company India Limited (HomeFirst), a technology-driven affordable housing finance company, has reported robust financial results for the first quarter, while pursuing growth through expansion into tier-3 markets and digital asset diversification.

Strong Financial Performance

For Q1, HomeFirst reported:

• Assets Under Management (AUM) of ₹13,479.00 crore, showing a significant growth of 28.60% year-on-year and 6.00% quarter-on-quarter.
• Profit After Tax (PAT) of ₹119.00 crore, up by 35.50% year-on-year and 13.60% quarter-on-quarter.
• Disbursements of ₹1,243.00 crore, reflecting a 7.00% year-on-year growth.

Expansion and Growth Strategy

HomeFirst is actively pursuing growth through:

1. Penetration into tier-3 markets to expand its customer base.
2. Digitally enabled asset diversification to enhance its product offerings.
3. Strengthening its borrower profile while maintaining steady disbursement momentum.

Credit Rating Upgrade and Capital Infusion

The company's long-term credit rating has been upgraded to AA 'Stable' by ICRA, IndRa, and CARE. This upgrade follows a successful Qualified Institutions Placement (QIP) that raised ₹1,250.00 crore, significantly enhancing the company's net worth to ₹3,855.00 crore.

Operational Highlights

• Addition of 3 new physical branches, bringing the total to 158 branches across 13 states/UTs.
• Serving 142 districts in India.
• Net addition of 75 employees, taking the total employee base to 1,709.

Asset Quality

HomeFirst maintains a strong focus on asset quality:

• Gross Stage 3 (GNPA) at 1.80%, up by 10 bps quarter-on-quarter.
• Credit cost at 40 bps, up by 10 bps quarter-on-quarter.

Technology and Digital Initiatives

The company continues to leverage technology for improved operations:

• Integration of DigiLocker into document verification processes.
• Launch of "Pulse" - an omni-channel conversational AI platform.
• 78% adoption of account aggregator among new approvals.
• 80%+ digital fulfillment with digital agreements and E-NACH mandates.
• 96% of customers registered on the company's app.

ESG Initiatives

HomeFirst is committed to sustainable and responsible lending:

• Promotion of energy-efficient "Green" homes, with 70 additional homes certified during the quarter.
• Total of 190 Green Homes certified as of June.
• High ESG scores from independent global agencies, including MorningStar Sustainalytics, SES ESG Research, and CRISIL.

Manoj Viswanathan, MD & CEO of HomeFirst, commented on the results, stating, "Q1 saw consistent business delivery with Assets Under Management (AUM) growing to ₹13,479.00 Cr, registering a growth of 28.60% y-o-y and 6.00% q-o-q. The key highlight from the quarter was the successful QIP of ₹1250.00 Cr and a subsequent upgrade of our long-term credit rating to AA (Stable) by ICRA, IndRa and CARE."

He further added, "We remain committed towards building a large affordable housing finance franchise driven by our unique business model. Housing in India continues to be a multi-decade growth opportunity with HomeFirst well positioned to harness the same."

As HomeFirst continues to expand its reach and strengthen its market position, the company appears well-positioned to capitalize on the growing demand for affordable housing finance in India.