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Home First Finance soars after strong Q4 performance

Capital Market 

Home First Finance Company India jumped 6.16% to Rs 518.85 after the company's net profit surged 150.8% to Rs 31 crore in Q4 FY21 from Rs 12 crore in Q4 FY20.

Total income during the quarter increased by 28.1% year-on-year (YoY) to Rs 136 crore. Disbursement in Q4 FY21 were at Rs 452 crore, up by 30.4% from Rs 347 crore in Q4 FY20. Collection efficiency has improved further to 98.5% in March 2021 from 97.6% in December 2020. Bounce rates have improved to 17.3% in Q4 FY21 from 20.1% in Q3 FY21.

Asset under management (AUM) registered a growth of 14.4% to Rs 4,141 crore in Q4 FY21 over Q4 FY20.

The housing financier reported 25.9% increase in net profit to Rs 100 crore on 16.6% rise in total income to Rs 489 crore in the year ended 31 March 2021 over the year ended 31 March 2020.

Expected credit losses (ECL) provision as on 31 March 2021 is Rs 46 crore; resulting in total provision to loans outstanding ratio at 1.4%; and the Stage 3 provision coverage ratio is at 74.4%.

Manoj Viswanathan, MD & CEO, said: "Our results for Q4 & FY21 have exceeded our forecasts. Southern markets now contribute to more than 30% of our disbursals. We continue to adopt a balanced approach to business growth with a keen focus on asset quality and profitability."

Home First Finance Company is a technology driven affordable housing finance company (HFC) focused on first-time home buyers in low and middle-income groups. It primarily offers housing loans for the purchase or construction of homes, which comprised 92.1% of its Gross Loan Assets end September 2020. The new to credit customers account for 32.8% of loan book.

The scrip entered the stock exchanges on 3 February 2021. It was listed at Rs 612.15 apiece, at a premium of 18.18% or 518 points to the initial public offer (IPO) price of Rs 518 per share.

The IPO of Home First Finance Company India was subscribed 26.66 times. The issue opened for subscription on 21 January 2021 and closed on 25 January 2021. The price band for the IPO was set at Rs 517-518 per share.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, May 04 2021. 11:08 IST