Q1 2025 Home First Finance Company India Ltd Earnings Call Transcript
Key Points
- Home First Finance Co India Ltd (BOM:543259) crossed the critical milestone of INR10,000 crores AUM during the quarter.
- Disbursement in Q1 FY25 reached a new high of INR1,163 crores, growing by 29.9% year-on-year and 5.5% quarter-on-quarter.
- Profit after tax grew by 27.0% year-on-year to INR88 crores, leading to an ROA of 3.6% and an ROE of 16.3%.
- Asset quality remains strong with 1+ DPD at 4.5%, 30+ DPD at 2.9%, and gross stage three NPA at 1.7%.
- Technology adoption is robust with 95% of customers registered on the app and 70% digital fulfillment using digital agreements and e-NACH mandates.
- The PLR increase of 35 basis points from August 1 will have a limited benefit on the portfolio, impacting spreads by 10 to 15 basis points.
- Operating cost to assets is expected to hover around 2.8% to 2.9%, indicating potential cost pressures.
- Credit cost increased to 20 basis points, up 10 basis points quarter-on-quarter.
- The BT Out rate, although moderated, still stands at 6.3%, indicating some customer churn.
- The company's borrowing mix shows a significant reliance on banks and NHB, with 59% combined from private and public sector banks, which could pose risks if borrowing costs rise.
Ladies and gentlemen, good day, and welcome to Home First Finance Company India Limited Q1 FY25 Earnings Conference Call. (Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Mr. Manish Kayal from Home First Finance. Thank you, and over to you, sir
(inaudible) to all the participants to Home First's earnings call to discuss the results of Q1 FY25. We hope that you had an opportunity to go through our investor deck and press release uploaded on stock exchanges and website yesterday. We have also uploaded the Excel factsheet which has the historical numbers on our website.
On today's call, Home First today is represented by our MD and CEO, Mr. Manoj Viswanathan; and CFO, Ms. Nutan Gaba Patwari. We'll start this call with an opening remarks by Manoj, then by Nutan, and then we will have a Q&A session. With this, I will now request our MD and CEO, Mr. Manoj Viswanathan, to start today's call by sharing his thoughts on the overall
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