Mumbai: Home First Finance Company India Limited is a technology driven affordable housing finance company that targets first time buyers in low and middle-income groups.

Particulars (Rs. Mn)	9M FY21	9M  FY20	Y-o-Y
AUM	39,406	33,939	+16.1%
Disbursement	6,448	12,717	(49.3)%
PAT	689	671	+2.7%
Spread* (%)	4.7%	4.1%	+60 bps
ROA (%)	2.5%	3.1%	(60) bps
Gross Stage 3(%)	1.6%	1.0%	+60 bps
*IGAAP basis Cost to Income (%)	39.5%	44.9%	(540) bps

Key Highlights for 9MFY21:

Capital raised through IPO:

·         Rs. 2,650 Mn will be utilized for increasing Company’s Tier I capital, which stands at 51.0%

·         Networth as of Dec’20 is at Rs. 10,921 Mn

Asset under Management (AUM):

·         Rs. 39,406 Mn, Salaried – 74%, Self-employed – 25% and Corporate – 1%

Disbursement:

·         Ahead of pre-covid levels on run –rate basis. Dec’20 has surpassed Dec’19

Collection Efficiency:

·         Improving on month-on-month basis and has remained above 96% since Sep’20. It was 96.3% in Oct’20, 96.6% in Nov’20 and 97.6% in Dec’20

Asset Quality:

·         Gross Stage 3 is at 1.6% and Net Stage 3 is at 1.1%. Zero restructuring

Distribution:

·         As on 31st December 2020, the Company has 72 branches with presence in 11 states and 1 union territory

Borrowings:

·         Total borrowings including debt securities are at Rs. 28,393 Mn as on 31^st December 2020 from Rs. 22,050 Mn as on 31^st December 2019

·         Cost of borrowings stood at 8.0% for Q3FY21

Provisions:

·         ECL provision as on 31st December 2020 is Rs. 461.8 Mn resulting in total provision to loans outstanding ratio at 1.4%; and the Stage 3 provision coverage ratio is at 90.4%

Spread:

·         Spread on loans stood at 4.7% compared to 4.1% as of 9MFY20

Commenting on the performance Mr. Manoj Viswanathan CEO said, “We would like to thank our investors for their support in making our IPO successful during the current pandemic times. The IPO was a great success with an oversubscription of 26.21 times. The equity infusion will further augment our capital adequacy ratio. The strong capital position will allow us to continue our investments in technology and accelerate our growth trajectory.

Coming to our results for Q3 & 9MFY21, the results have been in line with our expectations. We saw significant impact on the disbursements at the start of the financial year 2021 due to Covid-19 pandemic. However, with easing of lockdown restrictions and strong demand for home loans across sectors and customer types, we are witnessing an increasing trend in our disbursements on a month-on-month basis; with Dec’20 disbursements surpassing Dec’19.

Our collection efficiency ratio has reached 97%+ in Dec’20; which is very close to the pre-covid levels. We are very conscious about our asset quality and managed to maintain our Gross Stage 3% at reasonable levels (Dec’20 at 1.6%) even in these challenging times. We continue to adopt a balanced approach to business growth with a keen focus on asset quality and profitability.

During the quarter, we have further strengthened our liquidity position and we raised 17,714 Mn of liquidity in 9MFY21. We continue to maintain a robust ALM with a cumulative positive match across all tenures.

Over the years, we have built up a strong tech-led operating model along with an integrated customer relationship management and loan management system to deliver superior service to the customers with industry leading turnaround time and continuing focus on efficiency within the Company.”