In Q4 FY23, Home First Finance’s net profit increased by 6.38%.

NEW DELHI: The net profit of Home First Finance Company increased by 6.38 percent during the three months that ended on March 31, 2023. According to a BSE report by the company, its profit after tax increased to Rs 640.28 million in Q4 FY23 from Rs 601.88 million in the equivalent period of the previous year.

The company’s overall revenue increased by 48.19% from the Rs 1,560.86 million it reported in the same quarter last year to Rs 2,313.03 million in Q4 FY23.

The non-convertible debentures (NCDs) will be offered, issued, and allocated in one or more tranches for a maximum price of Rs 500 crore, according to the board of directors’ approval.

For the fiscal year that ends on March 31, 2023, the board has also recommended a dividend on equity shares at the rate of Rs 2.60 per share (130%) of the face value of Rs 2 per share.

“Our physical branch office spread crossed 100 branches (111 branches as of 31 March 2023) and disbursed more than Rs 3,000 crore in this financial year,” said Manoj Viswanathan, MD & CEO of the firm. The asset under management (AUM) of HomeFirst increased by 33.8% from Rs 5,380 crore to Rs 7,198 crore as a result of an increase in disbursals from Rs 2,031 crore in FY22 to Rs 3,013 crore in FY23.

In FY23, we made even more success with our early bucket collection strategy. On a yearly basis, 1+ DPD improved from 5.3% to 4.0%. The 30-plus DPD decreased from 3.7% to 2.7% on an annual basis. According to an RBI circular dated 12 November 2021, Gross Stage 3 (GNPA) increased from 2.3% to 1.6% on an annual basis. It was 0.9% prior to classification (March 2022: 1.3%).

The adoption of digital technology has increased. As of March 2023, 93% of our clients are registered on our app, up from 91% in December 2022 and 80% in March 2022. From 54% in Q4 FY22 to 57% in Q4 FY23, there was an increase in unique user logins. Service requests submitted using the app have increased from 83% to 91% year over year.

ROE for Q4 FY23 was 14.4%, up from 12.5% for Q4 FY22. Strong NIMs (6.4% vs. 5.4% y-o-y), the best use of capital, and prudent operational costs all contributed to the improvement in ROE.

Its net worth was Rs 18,173.39 million as of March 31, 2023, with a debt-to-equity ratio of 2.65, a total debts-to-total-assets ratio of 0.71, a net profit margin of 28.69%, a gross non-performing asset (NPAs) to loan assets ratio of 1.61%, and a net NPAs to net assets ratio of 1.07%. According to the company’s regulatory filing, as of March 31, 2023, it has Rs 48,134.73 million in outstanding debt.

Employees who exercised their options under the approved employee stock option schemes received 1,70,833 and 3,83,064 equity shares during the three months and twelve months ended March 31, 2023, respectively.

In Q4 FY23, the company reported quarterly disbursements of Rs 869 crore, representing year-over-year growth of 35.6% and quarter-over-quarter growth of 11.4%. Disbursements totaled Rs 3,013 crore per year in FY23, representing a 48.4% increase from the previous year.

GNPA total provision coverage ratio (PCR) is at 59.5% in March 2023 vs. 47.1% in March 2022 (total PCR without taking into account the impact of RBI circular is 104.8% in March 2023 vs. 83.6% in March 2022). ECL provision as of March 2023 was Rs 58 crore, resulting in a total provision to loans outstanding ratio of 1%.

As of March 2023, total borrowings, including debt securities, were Rs 4,814 crore, up from Rs 3,467 crore in March 2022. As of March 2023, the corporation still has Rs 1,802 crore in liquid assets. According to a press statement from the corporation, the cost of borrowing increased by 20 basis points to 7.4% in FY23 from 7.2% in FY22.