Affordable housing financier Home First Finance Company India Ltd on Tuesday (January 28) reported a 24.1% year-on-year (YoY) surge in net profit at ₹97.8 crore for the third quarter that ended December 31, 2024. In the corresponding quarter of the previous fiscal, Home First Finance Company India posted a net profit of ₹78.8 crore.
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Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, increased 28.4%, coming at ₹213.3 crore against ₹166.1 crore in the corresponding quarter of FY24.
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Further, Home First Finance Company India said it has plans to raise ₹1,250 crore to support its growth and expand its loan portfolio and asset base. The company’s board of directors has approved the issuance of equity shares through a qualified institutions placement (QIP) or other permissible modes.
The proposed fundraising, capped at ₹1,250 crore, will involve issuing equity shares to eligible investors in one or more tranches, subject to shareholder and regulatory approvals.
Home First Finance disbursed ₹1,193 crore in Q3FY25, marking an 18.4% YoY growth. The company’s assets under management (AUM) reached ₹11,949 crore, registering a 32.6% YoY increase and a 6.4% growth QoQ. Housing loans constitute 84% of the AUM, with the economically weaker section (EWS) and low-income group (LIG) segments forming approximately 61% of the customer base.
As of December 2024, the company reported expected credit loss (ECL) provisions of ₹84 crore, resulting in a provision-to-loans outstanding ratio of 0.8%. The gross non-performing asset (GNPA) to total provision coverage ratio (PCR) stood at 47.3% in December 2024, compared to 52.4% in December 2023.
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Total borrowings, including debt securities, stood at ₹9,213 crore as of December 2024. The company maintained a liquidity buffer of ₹3,486 crore. The cost of borrowings remained steady at 8.4% quarter-on-quarter.
The company’s total capital to risk-weighted assets ratio (CRAR) stood at 33.1%, with Tier I capital at 32.7%. The net worth increased to ₹2,408 crore in December 2024 from ₹2,289 crore in September 2024.
Home First Finance reported a total income of ₹407 crore, reflecting a 35.4% year-on-year growth. Pre-provision operating profit (PPOP) stood at ₹140 crore, up by 27.2% year-on-year. Net profit after tax (PAT) grew by 23.5% to ₹97 crore over last year. The return on assets (ROA) was at 3.4%, flat QoQ, while the return on equity (ROE) increased by 10 basis points to 16.6% over the previous quarter.
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The results came after the close of the market hours. Shares of Home First Finance Company India Ltd ended at ₹959.15, down by ₹17.95, or 1.84 %, on the BSE.
