Q4 2024 Home First Finance Company India Ltd Earnings Call Transcript
Key Points
- Disbursements grew by 31.5% to INR3,963 crores, and AUM increased by 34.7%.
- PAT grew by 33.9% year-on-year to INR306 crores, leading to an ROA of 3.8%.
- ROE for FY24 was 15.5%, with Q4 FY24 seeing an increase to 16.1%.
- Asset quality remains strong with 1+ DPD at 4.2% and 30+ DPD at 2.8%, both showing improvements.
- Digital adoption is high, with 95% of customers registered on the app and 47% of loan sanctions processed with data from account aggregators.
- NIM compression due to increased financial leverage, higher cost of borrowing, and higher cash holdings.
- Balance transfers have increased to 7.5%-8% from the previous 6%, indicating potential customer dissatisfaction with rate hikes.
- Operating cost to assets at 2.5% for Q4 due to cleanup of old provisions, with guidance of 3% going forward.
- Cost of borrowing is competitive at 8.25%, but has increased by three basis points quarter-on-quarter.
- Credit cost guidance remains at 30-40 basis points, with current quarter showing a decline due to recoveries from previously written-off accounts.
Ladies and gentlemen, good day, and welcome to Home First Finance Company India Limited Q4 FY24 earnings conference call. (Operator instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Manish Kayal, Head Investor Relation at Home First Finance. Thank you and over to you, sir.
Thank you, Ria. Good morning, everyone. I hope that all of you and your families are safe and healthy. I extend a very warm welcome to all participants on our Q4 and FY24 conference call. I hope everybody had an opportunity to go through our investor deck and press release uploaded on stock exchanges yesterday. We have also uploaded the Excel factsheet with historical numbers on our website, so please have a look.
On todayâs call, we have our MD and CEO, Mr. Manoj Viswanathan; and CFO, Ms. Nutan Gaba Patwari. We will start this call with an opening remark by Manoj and Nutan and will then have a Q&A session. With this introduction, I
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