Q2 2025 Home First Finance Company India Ltd Earnings Call Transcript
Key Points
- Home First Finance Co India Ltd (BOM:543259) reported a strong year-on-year AUM growth of 34.2%, reaching 11,229 crores.
- The company expanded its distribution network by adding nine new branches, increasing its presence to 142 branches across 13 states and Union territories.
- Profit after tax increased by 24% year-on-year to 92 crores, delivering an ROE of 16.5%.
- The company's credit cost decreased by 20 basis points year-on-year, maintaining a stable credit profile.
- Technology adoption is high, with 95% of customers registered on the app and digital fulfillment reaching over 75%.
- There was a noted increase in the bounce rate to 15.6% in October, the highest in the last eight quarters.
- Employee expenses increased significantly, with a 20% sequential rise, attributed to new ESOP grants and expansion efforts.
- The leverage ratio has been increasing, with debt to equity reaching 3.9, indicating higher borrowing.
- Stage two provisions increased to 10.1% from 7.8% quarter-on-quarter, reflecting a more conservative provisioning approach.
- Net interest cost rose disproportionately by 50.4% compared to AUM growth, due to increased borrowing costs and leverage.
Ladies and gentlemen, good day. And welcome to the Home First Finance Company, India Limited Q2 fy '25 earnings conference call.
(Operator Instructions)
I now hand the conference over to Mr. Manoj Vishwanathan, managing director and CEO of Home First Finance Company India Limited.
Thank you and over to you, sir.
Thank you. Good evening and greetings to everyone and a warm welcome to all the participants to the home first earnings call to discuss the results for quarter to over '25.
Today on the call, I'm joined by our CFO Ms. Nutan Gaba Patwari. But together we extend a warm welcome and hope you had a chance to review our minister presentation and press release that have have been uploaded on our website and stock exchanges. Additionally, excel fact sheet, including the historical data have also been uploaded on our website.
Let me start by giving you the highlights of our quarter two performance. We are pleased with the company's strong
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