Home First Finance Company India Ltd. · NSE:HOMEFIRST
Home First Finance Company India — Q3 FY25 Earnings Presentation
49 slides from Home First Finance Company India's earnings presentation, Jan 28, 2025
Slide 1: Filing cover letter to BSE and NSE
HFFCIL/BSE/NSE/EQ/94/2024-25 Date: 28-01-2025 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- 400001. Mumbai- 400 051. Scrip Code- 543259 Scrip Symbol-
Slide 2: Home First Finance Company Investor Presentation Q3FY25
Home First Finance Company Investor Presentation Q3FY25
Slide 3: Safe Harbour
Safe Harbour Safe Harbour 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
Slide 4: Q3FY25 Highlights
Q3FY25 Highlights Executive Summary | Q3FY25 y-o-y q-o-q Assets Under Management (AUM) Disbursement Gross Stage 3 / POS (GNPA) ₹1,19,494 Mn ₹11,928 Mn 1.7%(1) In line with RBI circular dated 12 Nov 2021 1.4% prior to such classification +32.6% +6.4% +18.4% +1.4% 0 bps 0 bps Spread(2) Opex to Assets
Slide 5: MD & CEO Commentary on Q3 FY25
MD Commentary MD & CEO Commentary on Q3 FY25 “We are delighted to report another quarter of strong performance. Our AUM grew to Rs. 11,949 Cr, reflecting a robust y-o-y growth of 32.6% and q-o-q growth of 6.4%. PAT increased by 23.5% on a y-o-y basis to Rs. 97 Cr leading to RoA of 3.4%. We achieved
Slide 6: HomeFirst – Who are We?
HomeFirst – Who are We? Corporate Information ▪ Technology driven affordable housing finance company with pan India presence. Hub and spoke distribution covering 80% of the affordable housing market in the country. ▪ Home loans to first time home buyers with predominant focus on families with a monthly
Slide 7: Our Journey
Corporate Information Our Journey India ICRA / CARE India CARE Rating CARE / ICRA Rating Ratings Rating Ratings BBB- BBB+ A- A+ AA- AA- AA-(+ve) AUM crosses ₹100 bn. 1,19,494 ₹ 1,19,494 Assets Under Management Mn 100+ Physical AUM crosses ₹75 bn. 96,978 We got listed Branches Scalable operating mode
Slide 8: Shareholding as on 24 Jan’25
Shareholding as on 24 Jan’25 Corporate Information PROMOTER & PROMOTER GROUP % Holding TRUE NORTH FUND V LLP 8.6 AETHER (MAURITIUS) LIMITED (GIC)^ 5.7 KEY INVESTORS % Holding ORANGE CLOVE INVESTMENTS B.V (WARBURG PINCUS) 12.2 MFS & AIFS % Holding* 8.6% TRUE NORTH FUND V LLP HDFC MF 5.1 Public & Othe
Slide 9: Distinguished Board of Directors
Leadership Distinguished Board of Directors Independent Directors Deepak Satwalekar Geeta Dutta Goel Anuj Srivastava Sucharita Mukherjee Current: Independent Director at Current: Managing Director at Current: Founder and CEO of Current: Founder and CEO of Wipro Dell Foundation, Independent Livspace
Slide 10: Experienced Management Team
Leadership Experienced Management Team 14 26 12 24 13 21 Manoj Viswanathan Ajay Khetan Gaurav Mohta Dy. Chief Executive Officer & Chief Marketing Officer Chief Executive Officer Chief Business Officer Education: B-Tech BITS, Pilani and PGDM XLRI Education: MNNIT Allahabad and PGDM XIM-B Education: B-Tech
Slide 11: Meet Our Customers
Corporate Information Meet Our Customers Formal Salaried Informal Salaried Self Employed Customer 1 68% Customer 2 32% Customer 3 Age:38 / Location: Indore Salaried Age:46 / Location: Hyderabad Self Employed Age:46 / Location: Haridwar Who are they? Govt. employee - working at Nagar Nigam, Automobil
Slide 12: Our Unique Value Proposition to Our Customers
Corporate Information Our Unique Value Proposition to Our Customers Who are our customers What do our customers need What challenges do they face ▪ Salaried and self-employed ▪ Home loan requirement individuals ▪ Inability to meet documentation NPS primarily in the ₹0.5 -1.5 mn requirements of tradi
Slide 13: Distribution Strategy
Corporate Information Distribution Strategy 0 -4 4-7 7 - 15 Contribution to India's GDP FY’23 ( %) Physical branches - 149 Pan India Distribution driven by strategic market selection & contiguous expansion 359 Proposed branches - 72 Touchpoints Digital branches - 138 149 141 13 359 Branches District
Slide 14: Omni Channel Lead Generation Strategy
Corporate Information Omni Channel Lead Generation Strategy Diversified lead generation channels | Q3 FY25 77.8% Diversified channels for generating leads such as connectors, builder ecosystem, digital, etc. 100% in-house conversion 8.2% by HomeFirst RMs. 1.8% 2.6% 4.3% 2.5% 0.2% 1.5% 1.1% Constructio
Slide 15: Data Science Backed Centralised Underwriting
Corporate Information Data Science Backed Centralised Underwriting Risk Management Design Tech-Led Centralised ▪ Salaried customers ▪ 100+ data points & digitally ▪ Consistency in underwriting Loans Approved within 48hrs captured data for all customers ▪ Build detailed understanding of ▪ Integrated
Slide 16: Scalable Operating Model built on Holistic Technology Usage
Corporate Information Scalable Operating Model built on Holistic Technology Usage Mobility Digital Marketing Data Analytics Tech - Infra Recent Tech Interventions ▪ Home First App for all ▪ Digital marketing on major ▪ API Integration with third ▪ Data on Cloud stakeholders online media party databa
Slide 17: Digital Adoption
Corporate Information Digital Adoption Customer Rating on Google Unique user logins as % of active Playstore % Customers registered on App customers 94% 95% 95% 95% 96% 4.2 Average payment per user on 54% 53% 50% 50% 48% As of 24 Jan’25 app ₹36,375 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1
Slide 18: Building the Brand HomeFirst
Corporate Information Building the Brand HomeFirst Home First Finance Company India Ltd. Investor Presentation – Q3 FY25 17
Slide 19: ESG at HomeFirst
ESG at HomeFirst Putting sustainability at core of operations
Slide 20: Commitment to ESG
Commitment to ESG ESG Comprehensive Policy & Governance Mechanism An ESG Execution Team with The Company understands management team participation has the growing importance of been created to ensure ESG and has adopted a Robust implementation of the ESG Policy Board approved ESG Policy Implementati
Slide 21: Digital Processes from start to finish to reduce Carbon Footprint
Digital Processes from start to finish to reduce Carbon Footprint ESG Customer App Connector App RM Pro App Green Operations Operational Eco-efficiency & Climate Resilience HomeFirst has a deeply ingrained Ideology of all processes being paperless across the product cycle. Implemented Electronic pro
Slide 22: Progress on Social Development
Progress on Social Development ESG Sashakt Stories Responsibility towards community Responsibility towards employees Sameer Chauhan Priyanka Rathod Project Sashakt : 5,000+ families touched Sashakt Beneficiary Sashakt Beneficiary Skilling & Employment | Education & Development | Health DDEO Trade Be
Slide 23: Progress on Social Development
Progress on Social Development ESG Responsibility towards customers ESG Initiatives Sustainable Finance Customer Satisfaction • Funds raised from IFC to finance affordable housing and green housing. HomeFirst raised Rs 280 crores from International Finance Corp (IFC) through up to 7-year debt. Link
Slide 24: Strong Governance Structure
Strong Governance Structure ESG Work Sustainably & Ethically Governance at core Separate Chairman & Managing Director position Sustainable Finance Corporate Governance We promote Financial Inclusion. • Core competencies of Independent Directors directly relevant to company’s operations. We have cust
Slide 25: Strong Governance Practice
Strong Governance Practice ESG Corporate Governance Structure Top-tier Corporate Governance • High Independent Directors representation in all Board Committees • Highly experience Board & Management Team on Risk Management committee. • Company's risk management framework is driven by its Board and i
Slide 26: Business Updates
Business Updates
Slide 27: Healthy Growth in Loan Book and Disbursements
Healthy Growth in Loan Book and Disbursements Business Updates Disbursement ( ₹Mn ) Last 5 Years Last 5 Quarters 39,634 11,928 11,625 11,768 18.4% growth y-o-y on disbursements 30,129 11,019 20,305 16,183 10,966 10,072 FY20 FY21 FY22 FY23 FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Assets Under Manageme
Slide 28: Consistent Portfolio Matrix | Dec’24
Consistent Portfolio Matrix | Dec’24 Business Updates 15% 32% 1% AUM by Product AUM by Occupation Salaried Housing Loan Shop Loans Self Employed LAP Sharp focus on High ratio of housing loans 68% salaried customers 84% 85% 1% 14% 15% AUM by Credit history AUM by Ticket Size 12% Upto 0.5mn AVG: 746 H
Slide 29: Competitive Spreads
Competitive Spreads Business Updates Portfolio Yield Portfolio Yield (Ex CL) COB COB (Ex CL) Net Interest Spread Movement Spread (Overall) Spread (Ex CL) Repricing schedule 25bps w.e.f 1st Jul’22 Last 5 Years Last 5 Quarters 50bps w.e.f 1st Dec’22 50bps w.e.f 1st Apr’23 13.6% 13.7% 13.6% 13.5% 13.6%
Slide 30: Healthy Leading Indicators
Healthy Leading Indicators Business Updates Bounce rate : On the day of EMI presentation Bounce rate Bounce rates are range-bound COVID COVID WAVE -1 WAVE -2 36.4% 28.3% 20.1% 17.3% 18.3% 16.5% 15.7% 15.6% 16.0% 16.0% 14.5% 14.9% 15.0% 14.2% 15.1% 14.7% 15.3% 15.2% 14.0% 13.6% 10.0% 10.9% 10.5% 9.5%
Slide 31: Healthy Leading Indicators
Healthy Leading Indicators Business Updates Collection Efficiency Collection Efficiency (1) Collection efficiency at normal levels Unique Customers (2) 98.8% 98.5% 98.5% 98.3% 98.2% 98.4% 98.4% 98.6% 99.1% 98.1% 97.4% 98.6% 98.5% 98.3% 98.3% 97.2% 98.7% 97.4% 97.7% 97.6% 97.6% 97.7% 97.6% 97.5% 97.5% 97.4
Slide 32: Sound Credit Indicators
Sound Credit Indicators Business Updates DPD 1+ / POS DPD 30+ / POS % Stage 3 / POS Stage 2 / POS 6.2% 4.1% Asset quality at 5.3% 4.5% 4.5% 4.5% 4.8% 3.7% 4.4% 4.2% 4.2% healthy levels 4.0% 3.0% 2.9% 3.1% 1.8% 2.7% 2.8% 2.8% 2.8% 2.0% 2.3% 1.7% 1.7% 1.7% 1.6% 1.7% 1.7% 1.7% 1.0% 2.3% 0.9% 1.4% 1.1%
Slide 33: Diversified funding profile at competitive Cost of Borrowing
Diversified funding profile at competitive Cost of Borrowing Business Updates DA Borrowings Mix and Cost of Borrowing trend Co-Lending ECB Total Borrowings 58,009 59,556 68,215 72,792 82,514 87,954 95,120 1,05,869 1,10,391 (₹Mn) (1) NCD NHB Refinance Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 S
Slide 34: ALM Position as of Dec’24 - Cumulative
ALM Position as of Dec’24 - Cumulative Business Updates Inflow Outflow Surplus 22,345 28,909 29,132 27,332 36,619 20,685 (₹Mn) Robust ALM profile ensuring 1,97,236 sufficient liquidity buffers 1,76,551 1,68,499 1,31,880 1,21,201 Cumulative Positive flows 93,869 across all the time buckets 64,742 48,554 33,
Slide 35: Assignment and Co-lending Transactions
Assignment and Co-lending Transactions Business Updates Direct Assignment Transactions Co-Lending Transactions ₹4,646 Mn ₹3,784 Mn ₹6,278 Mn ₹5,743 Mn Consistent demand for assignment 1,956 1,936 1,880 1,927 of the company’s 1,708 226 portfolio 417 345 1,471 609 1,183 1,273 1,143 676 1,140 1,154 1,0
Slide 36: Strong Liquidity Position
Strong Liquidity Position Business Updates Liquidity Buffer as on Dec’24 (in ₹Mn) Unencumbered Cash and Cash equivalent 14,107 Un-availed Sanction from NHB 750 Un-availed Sanction from Banks 20,004 Total 34,861 ₹ 50,869 million Liquidity raised during 9MFY25 Particulars (in ₹Mn) Q4FY25 Q1FY26 Q2FY26
Slide 37: Financial Updates
Financial Updates
Slide 38: Financial Highlights
Financial Highlights Financial Updates Profit After Tax ( ₹Mn ) Net worth ( ₹Mn ) Equity Raised 3281 3450 32 53 62 36 62 82 159 251 ( ₹Mn ) 3,057 2,283 (1) 24,082 Robust NW to 1,741 Strong profit growth 21,215 21,876 22,895 20,318 21,215 support growth 974 18,173 878 922 835 15,737 1,001 788 13,805 79
Slide 39: ECL Provisions Summary
ECL Provisions Summary Financial Updates Loan Particulars (in ₹Mn) Stage 1 Stage 2 Stage 3 Commitment Total For period ended Dec’24 Loans – Principal Outstanding 98,326.3 1,368.3 1,769.5 1,01,464.1 ECL Provision 232.4 131.4 450.9 22.9 837.6 Net Loans – Principal Outstanding 98,093.9 1,236.9 1,318.6
Slide 40: Annexures
Annexures
Slide 41: Quarterly and Annual Profit and Loss Statement
Quarterly and Annual Profit and Loss Statement Financial Updates Particulars (in ₹Mn) Q3FY25 Q2FY25 Q3FY24 QoQ YoY FY24 FY23 YoY Interest Income on term loans 3,344.4 3,146.4 2,508.9 6.3% 33.3% 9,696.1 6,825.0 42.1% Net gain on DA 215.0 201.7 206.3 631.1 380.4 Income other than interest income on te
Slide 42: RoE Tree
RoE Tree Financial Updates Particulars Q3FY25 Q2FY25 Q3FY24 FY24 FY23 Interest Income on term loans / Average total assets 11.6% 11.7% 11.8% 11.9% 11.5% Net Gain on DA / Average total Assets 0.7% 0.7% 1.0% 0.8% 0.6% Income other than interest income on term loans/ Average total assets 1.8% 1.5% 1.3%
Slide 43: Key Financial Ratios
Key Financial Ratios Financial Updates Particulars Q3FY25 Q2FY25 Q3FY24 FY24 FY23 Profit after tax on average total assets (ROA) 3.4% 3.4% 3.7% 3.8% 3.9% Leverage (Average total assets / average Equity 4.9 4.8 4.3 4.1 3.5 or average Net worth) Profit after tax on average equity or average Net 16.6%
Slide 44: Balance Sheet
Balance Sheet Financial Updates Particulars (in ₹Mn) Dec’24 FY24 FY23 ASSETS Cash & cash equivalents and Other bank balance 11,133.1 8,215.1 2,984.1 Loans 1,00,649.4 81,434.4 59,957.0 Investments 3,432.8 3,788.1 2,808.0 Other financial assets 1,842.6 1,440.7 1,241.0 Property, plant and Equipment* 41
Slide 45: Consistent Financial Performance over the years
Consistent Financial Performance over the years Financial Updates Particulars (in ₹Mn) FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 CAGR % Operational Information Number of Branches 36 42 60 68 72 80 111 133 Loan disbursals 4,244 7,455 15,728 16,183 10,966 20,305 30,129 39,634 AUM 8,473 13,559 24,436 36,
Slide 46: Experienced and Diverse Board
Experienced and Diverse Board Leadership Mr. Deepak Satwalekar Ms. Geeta Dutta Goel Mr. Anuj Srivastava Chairman/ Independent/ Non-Executive Director Independent/ Non-Executive Director Independent/ Non-Executive Director Mr. Deepak Satwalekar was associated with HDFC Limited as a Ms. Geeta Dutta Go
Slide 47: Thank You
Thank You For further information, please contact Company CIN: L65990MH2010PLC240703 Ms Nutan Gaba Patwari, Chief Financial Officer nutangaba.patwari@homefirstindia.com Mr. Deepak Khetan, Head - Investor Relations deepak.khetan@homefirstindia.com Investor Relations - HomeFirst investor.relations@hom
Slide 48: Glossary
Glossary Glossary Terms Explanation Assets Under Management/Gross Loan Assets represents the aggregate of current principal AUM - Assets Under Management outstanding and overdue principal outstanding, if any, for all loan assets under management which includes loan assets held by the Company as of t
Slide 49: Finished tea? Come down,
Finished tea? Come down, AK help me wash the utensils. L - My hands are freezing... imam ZA Ct ith The best part—T have zero addition to electricity bills! WH! Uh} fogs Donen es *~ *
Home First Finance Company India — Q3 FY25 Earnings Presentation on 6ix