Profit before tax surged 32.89% year on year to Rs 84 crore during the quarter.

Disbursements grew by 35.6% YoY to Rs 869 crore in the quarter ended 31 March 2023. Spread on loans stood at 5.5% in Q4 FY22 as compared to 5.6% reported in Q4 FY22.

On full year basis, the firm's net profit rose 22.67% to Rs 228.29 crore on 33.56% increase in total income to Rs 795.60 crore in FY23 over FY22

The company's asset under management (AUM) improved to Rs 7,198 crore as on 31 March 2023, registering a growth of 33.8% from Rs 5,380 crore posted in the same period a year ago. Focus on housing loans that contribute 88% of AUM and EWS / LIG category that forms approximately 68% of the customer base.

Gross Stage 3 (GNPA) stands at 1.6% in line with RBI circular dated 12 November 2021. Prior to such classification, it stands at 0.9%.

ECL provision as on March 2023 was Rs 58 crore; resulting in total provision to loans outstanding ratio at 1%. The GNPA total provision coverage ratio (PCR) stood at 59.5% in March 2023 versus 47.1% in March 2022 (total PCR without considering the impact of RBI circular is 104.8% in March 2023 as compared to 83.6% in March 2022).

Total borrowings including debt securities were at Rs 4,814 crore as on March 2023 up from Rs 3,467 crore as on March 22. The company continues to carry a liquidity of Rs 1,802 crore as on March 2023.

Total CRAR stood at 49.4%. Tier I capital was at 48.9% as on March 2023.

Manoj Viswanathan, MD&CEO, said, “We can now take pride in having served 1,00,000 customers since inception with total housing loans disbursed in excess of 10,000 crore. Our physical branch office distribution crossed 100 branches (111 branches as of 31 Mar, 2023) and disbursed more than Rs 3,000 crore in this financial year which is the highest ever since the commencement of business. This year also saw the entry of International Finance Corporation (a member of World Bank Group) as a lending partner to the company with the issue of NCDs aggregating to Rs 280 crore.

We continue to expand our distribution in large affordable housing markets in States where we are already present, going deeper in a contiguous manner. We now do business across 265 touchpoints (increase of 65 from Mar'22 levels) across Tier 1, Tier 2 and Tier 3 markets in 13 states/ UT.

Our focus on early bucket collections has further progressed in FY23. 1+ DPD improved from 5.3% to 4.0% on y-o-y basis. 30+ DPD improved from 3.7% to 2.7% on yoy basis.

Digital adoption has further improved. 93% of our customers are registered on our app as on March 2023 compared to 91% in December 22 & 80% in March 2022. Unique User Logins improved from 54% in Q4 FY22 to 57% in Q4 FY23. Service requests raised on app have improved from 83% to 91% on a yoy basis.

During FY23, ROE improved sharply by 170 bps to 13.5% in FY23 over FY22's 11.8%. Q4FY23 witnessed ROE of 14.4% vs 12.5% for Q4FY22. Improvement in ROE was backed by strong NIMs (6.4% vs 5.4% y-o-y), optimal use of cash and judicious operating costs. We believe ROE's can improve further as we scale and operating leverage benefits continue to flow through.

Overall, FY23 was a very good year and we look forward to an even better FY24 given the tailwinds of the housing sector supported by overall economic growth momentum and strong execution mindset of the company.”

Meanwhile, the company's board has approved fund raising through issuance and allotment of non-convertible debentures (NCDs) for an amount not exceeding Rs 500 crore via private placement basis, in one or more tranches.

Further, the board has recommended a dividend of Rs 2.60 per share for financial year ended 31 March 2023. The dividend, if declared, will be credited within 30 days of the ensuing AGM.

Home First Finance Company India (HomeFirst) is a technology driven affordable housing finance company that targets first time home buyers in low and middle-income groups. It primarily offers housing loans for the purchase or construction of homes. The Company has deep penetration in the largest housing finance markets with a network of 111 branches with presence in 13 States / UT in India, with a significant presence in emerging urban regions in the states of Gujarat, Maharashtra, Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. The company has diversified lead generating channels with a wide network of connectors.

Shares of Home First Finance Company India fell 0.90% to Rs 707.35 on the BSE.