Home First Finance Company India Ltd. · NSE:HOMEFIRST
Home First Finance Company India — Shareholder Meeting (August 2021)
19 slides from Home First Finance Company India's shareholder meeting presentation, Aug 5, 2021
Slide 1: Stock exchange cover letter for AGM presentation
HFFCIL/BSE/NSE/EQ/53/2021-22 Date: 05-08-2021 To, To, BSE Limited The National Stock Exchange of India Limited, Department of Corporate Services The Listing Department, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Mumbai 400 051. Mumbai-400001. Scip Code-543259 Scrip Symbol-HOMEFIR
Slide 2: 12th Annual General Meeting
12th Annual General Meeting Presentation by Manoj Viswanathan, MD & CEO Tech in Mind. Service at Heart. Smart Loans for Affordable Homes!
Slide 3: Agenda
Agenda Who We Are FY21 Executive Summary Opportunity & Drivers Distribution Reach Digital & Tech Stack Portfolio Metrics Underwriting Asset Quality Liabilities & ALM Financial Highlights Looking Ahead Serving Our Communities 02 FY21 AGM Presentation
Slide 4: HomeFirst – Who we are
HomeFirst – W ho we are Technology driven affordable housing finance company with pan India presence Home loans to first time home buyers with predominant focus on salaried individuals having income < ₹50k p.m 92% of book comprise of housing loans with average ticket size of ₹1.0Mn Strong liquidity pip
Slide 5: Our Journey
Our Journey Scalable operating model CARE Rating CARE / ICRA Rating We got listed BBB- BBB+ A- A+ ₹42,943 Mn Warburg Pincus invested in the company (2) AuM (Jun’21) Series C 60,000+ sanctions True North acquires AuM crosses majority ₹35 bn. stake 30,000+ customers GIC Net worth Co-investment crosses
Slide 6: Executive Summary | FY21
y-o-y Executive Summary | FY21 Assets Under Management (AUM) Disbursement Gross Stage 3 / POS ₹41,411 Mn ₹10,966 Mn 1.8% +14.4% -32.2% +80 bps Spread * Cost to Income Opex to Assets 5.0% 39.0% 2.7% +90 bps -680 bps -80 bps Profit After Tax (PAT) Return On Assets (ROA) Return On Equity (ROE) ₹1,001 M
Slide 7: Affordable Housing Opportunity
Affordable Housing Opportunity USA: Per Capita Income vs Mortgage Penetration (% of GDP) USA: Per Capita Income vs Mortgage Penetration (% of GDP) Affordable Housing demand generated per year 2 Mn Units China: Per Capita Income vs Mortgage Penetration (% of GDP) Housing Loan Drivers in India Housing
Slide 8: Distribution Strategy
0 -4 4-7 7 - 15 Distribution Strategy Contribution to India's GDP FY’20 ( %) Existing branches - 72 New branch locations - 33 Pan India Distribution driven by strategic market selection & contiguous expansion Digital branches - 32 72 76 12 01 137 Distribution Strategy Branches Districts States UT To
Slide 9: Digital India: Catalyst for the Next Growth Cycle
Digital India: Catalyst for the Next Smartphone users in India in Mn Growth Cycle Increasing Smartphone Penetration a key driver for digital lending Source: Statista, https://www.statista.com/statistics/467163/forecast-of-smartphone-users-in-india/ UPI a gamechanger for payments processes UPI volume
Slide 10: Scalable operating model built on holistic technology usage
Scalable operating model built on holistic technology usage Tech Interventions API Integration with third party Home First App for all stakeholders databases E-NACH 360 o view of customer for employees E- Sign Proprietary property price predictor E- Vault Electronic payments Machine learning models
Slide 11: Consistent Portfolio Metrics | Jun'21
Consistent Portfolio Metrics | Jun’21 1% 1% 6% 1% AUM by Product AUM by Occupation Housing Loan 25% Salaried Shop Loans Self Employed LAP Corporate Developer Finance Sharp focus on High ratio of 92% 74% housing loans salaried customers 70% 3% 8% AUM by Credit history AUM by Ticket Size Upto 0.5mn Ha
Slide 12: Data Science backed centralized underwriting
Data Science backed centralized underwriting Risk Management Design Tech-Led Centralised Loans approved Salaried customers 100+ data points & digitally Consistency in underwriting within 48 hrs captured data for all customers Build detailed understanding of Integrated CRM and Loan customer via field
Slide 13: Sound Credit Indicators
Sound Credit Indicators Gross Stage 3 / POS % 1.8% 1.8% 1.9% 1.6% No ECGLS 1.0% 1.0% 0.9% 0.8% 0.6% Mar'18 Mar'19 Mar'20 Mar'21 Jun'20 Sep'20 Dec'20 Mar'21 Jun'21 0.6% of POS restructured (208 borrowers) in Q1FY22 under Resolution Framework Net Stage 3 / Net POS % 2.0. NIL restructuring under Resolu
Slide 14: Diversified Funding Profile at competitive cost of borrowing
DA Diversified Funding Profile at NCD COB% (Represents quarterly avg.) competitive cost of borrowing NHB Refinance NBFC Borrowings Mix and Cost of Borrowing trend Public Sector Banks 100% 9.00% Pvt Sector Banks 22% 90% 21% 19% 20% 22% Diversified mix of 80% 8.3% 7% 6% 8.50% 19* marquee Lenders 5% 8.5% 7
Slide 15: Financial Highlights
Financial Highlights Profit After Tax ( ₹Mn ) Net worth ( ₹Mn ) (1) Equity Raised 3450 - 1508 3281 11 ( ₹Mn ) 1001 13805 14173 796 Strong profit growth Strong NW, and despite maintaining 9334 low A/E to 457 351 high liquidity and 5227 support growth 160 3252 conservative COVID provisioning FY18 FY19 F
Slide 16: Strategic Priorities
Looking Ahead Leverage Technology to grow business Expand branch Enhancing risk network in large management affordable framework housing markets Strategic Priorities Diversify Increase borrowing productivity sources 15 FY21 AGM Presentation
Slide 17: Serving Our Communities
Serving Our Communities Our CSR initiatives revolved around 3 distinct areas: Disaster Management Healthcare & Hygiene Socio-economic Development Assistance to 1296 workers to travel back from their villages to their factories Oxygen concentrators deployed in 11 cities Food kits for covid affected f
Slide 18: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the "Presentation"), which have been prepared by Home First Finance Company India Ltd. (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 19: Thank You
Thank You For further information, please contact Company Investor Relations Advisors CIN: U65990MH2010PLC240703 Ms. Neha Shroff Mr. Manish Kayal, Head - Investor Relations +917738073466 manish.kayal@homefirstindia.com neha.shroff@linkintime.co.in Investor Relations - HomeFirst investor.relations@homefi
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