Home First Finance Company India Ltd. · NSE:HOMEFIRST

Home First Finance Company India — Q2 FY24 Earnings Presentation

48 slides from Home First Finance Company India's earnings presentation, Oct 26, 2023

  1. Slide 1: Exchange filing cover letter

    HFFCIL/BSE/NSE/EQ/79/2023-24 Date: 26-10-2023 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. Scrip Symbol- HOMEFIRST Scrip Cod

  2. Slide 2: Home First Finance Company India Limited

    Home First Finance Company India Limited

  3. 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

  4. Slide 4: Q2FY24 Highlights

    Q2FY24 Highlights Executive Summary | Q2FY24 y-o-y q-o-q Assets Under Management (AUM) Disbursement Gross Stage 3 / POS (GNPA) ₹ 83,654 Mn ₹9,591 Mn 1.7%(1) In line with RBI circular dated 12 Nov 2021 1.1% prior to such classification +33.3% +7.6% +36.6% +7.1% -20 bps +10 bps Spread(2) Opex to Asset

  5. Slide 5: MD & CEO Commentary on Q2 FY24 Performance

    MD Commentary MD & CEO Commentary on Q2 FY24 Performance “Q2FY24 performance has been strong across all operating and financial parameters. We have delivered an ROE of 15.6% in an inflationary and peak interest rate environment. This level of consistent and superior returns is a testimony to our str

  6. Slide 6: HomeFirst – Who We Are?

    HomeFirst – Who We Are? Corporate Information HomeFirst – Who are We? Technology driven affordable housing ESG Risk Rating by MorningStar Sustainalytics finance company with pan India presence ‘Amongst Leading Ratings in Home loans to first time home buyers with BFSI Sector ’ predominant focus on salar

  7. Slide 7: Our Journey

    Corporate Information Our Journey India ICRA / CARE CARE Rating CARE / ICRA Rating Ratings Rating BBB- BBB+ A- A+ AA- AA- AUM crosses 100+ Physical ₹75 bn. Branches Scalable operating model 83,654 1,00,000+ ₹ 83,654 Mn We got listed Customers 71,980 Assets Under Management W arburg Pincus invested i

  8. Slide 8: Shareholding as on Oct'23

    Corporate Information Shareholding as on 20 Oct’23 PROMOTER & PROMOTER GROUP % Holding TRUE NORTH FUND V LLP 18.2 AETHER (MAURITIUS) LIMITED (GIC)^ 12.0 KEY INVESTORS % Holding ORANGE CLOVE INVESTMENTS B.V (WARBURG PINCUS) 26.4 MFS & AIFS % Holding* Public & Others 16.3% 18.2% TRUE NORTH FUND V LLP

  9. Slide 9: Distinguished Board of Directors

    Leadership Distinguished Board of Directors 08 Home First Finance Company India Ltd. Investor Presentation – Q2 FY24

  10. Slide 10: Experienced Management Team

    Leadership Experienced Management Team Ajay Khetan Vilasini Subramaniam Chief Business Officer Head – Strategic Alliances Gaurav Mohta Nutan Gaba Patwari Ashishkumar Darji Chief Marketing Officer Chief Risk Officer Chief Financial Officer Abhijeet Jamkhindikar Ramakrishna Vyamajala Arunchandra Jupalli Busin

  11. Slide 11: Meet Our Customers

    Corporate Information Meet Our Customers Formal Salaried Salaried Informal Salaried Self Employed Self Employed Customer 1 69% Customer 2 31% Customer 3 Age:44 / Location: KR Puram Age: 32 / Location: Sayan Age: 36 / Location: Avadi (suburbs of Bangalore) (suburbs of Surat) (suburbs of Chennai) Who

  12. 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 NPS Home loan requirement primarily Inability to meet documentation individuals in the ₹0.5 -1.5 mn range (1) requirements of t

  13. Slide 13: Distribution Strategy

    Corporate Information Distribution Strategy 0 -4 4-7 7 - 15 Contribution to India's GDP FY’23 ( %) Pan India Distribution driven by strategic market selection & contiguous expansion Physical branches - 120 295 Proposed branches - 61 Touchpoints Digital branches - 114 120 125 13 295 Branches District

  14. Slide 14: Omni Channel Lead Generation Strategy

    Corporate Information Omni Channel Lead Generation Strategy Diversified lead generation channels | Q2 FY24 77.2% Diversified channels for generating leads such as connectors, builder ecosystem, digital, etc. 100% in-house conversion 7.9% by HomeFirst RMs. 2.9% 2.4% 3.9% 3.3% 0.4% 1.2% 0.8% Constructio

  15. 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 captured Consistency in underwriting Loans Approved within 48hrs data for all customers Build detailed understanding of customer Integrated C

  16. Slide 16: Scalable Operating Model built on Holistic Technology Usage

    Corporate Information Scalable Operating Model built on Holistic Technology Usage Recent Tech Interventions • Account Aggregator API Integration with third Data on Cloud Home First App for all Digital marketing on major party databases • KRA module integration with LOS stakeholders online media Inte

  17. Slide 17: Digital Adoption

    Corporate Information Digital Adoption Customer Rating on Google Unique user logins as % of active Playstore % Customers registered on App customers 87% 91% 93% 93% 94% 4.1 57% 55% 57% 55% 54% Average payment per user on As of 24 Oct’23 app ₹37,492 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4

  18. Slide 18: ESG at HomeFirst

    ESG at HomeFirst Putting sustainability at core of operations

  19. Slide 19: Commitment to ESG

    ESG Commitment to ESG ESG Framework An ESG Execution Team with The Company understands the Comprehensive management team participation has growing importance of ESG and Policy & Robust been created to ensure has adopted a Board approved Governance Implementation implementation of the ESG Policy ESG

  20. Slide 20: Digital Processes from start to finish to reduce Carbon Footprint

    ESG Digital Processes from start to finish to reduce Carbon Footprint 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

  21. Slide 21: Progress on Social Development

    ESG Progress on Social Development Responsibility towards community Responsibility towards employees Project “Sashakt”, an initiative by HomeFirst to bring an all- Certified as “Great Place To Work” by GPTW around improvement in the social, health and economic status of migrant factory workers livin

  22. Slide 22: Progress on Social Development

    ESG Progress on Social Development Responsibility towards customers ESG Initiatives Customer Satisfaction Sustainable Finance • Customer focus: Playing a key role in Financial inclusion • Funds raised from IFC to finance affordable housing and green housing. HomeFirst raised Rs 280 crores from by fa

  23. Slide 23: Strong Governance Structure

    ESG Strong Governance Structure Separate Chairman & Managing Work Sustainably & Ethically Governance at core Director position Sustainable Finance Corporate Governance We promote Financial Inclusion. • Core competencies of Independent Directors directly relevant to company’s operations. Experienced

  24. Slide 24: Strong Governance Practice

    ESG Strong Governance Practice 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

  25. Slide 25: Business Updates

    Business Updates

  26. Slide 26: Healthy Growth in Loan Book and Disbursements

    Business Updates Healthy Growth in Loan Book and Disbursements Disbursement ( ₹Mn ) Last 5 Years Last 5 Quarters 9,591 8,952 8,691 7,804 All time high disbursement in the quarter, 30,129 7,022 q-o-q growth of 7.1% and y-o-y growth of 20,305 15,728 16,183 36.6% 10,966 FY19 FY20 FY21 FY22 FY23 Q2FY23

  27. Slide 27: Consistent Portfolio Matrix

    Business Updates Consistent Portfolio Matrix | Sep’23 12% 31% 1% AUM by Product AUM by Occupation Salaried Housing Loan Shop Loans Self Employed LAP Sharp focus on High ratio of 87% housing loans 69% salaried customers 82% 2% 11% 18% AUM by Credit history 10% AUM by Ticket Size Upto 0.5mn AVG: 743 H

  28. Slide 28: Competitive Spreads

    Business Updates Competitive Spreads Portfolio Yield COB Net Interest Spread Movement Spread 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 13.4% 13.7% 13.6% 12.9% 13.0% 13.1% 13.0% 13.1% 12.8% 12.3% Competitive Cost of Borrowing

  29. Slide 29: Healthy Leading Indicators

    Business Updates Healthy Leading Indicators 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% 15.7% 14.5% 14.0% 14.9% 15.0% 14.2% 13.6% 10.0% 10.9% 10.5% 9.5% Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q

  30. Slide 30: Healthy Leading Indicators

    Business Updates Healthy Leading Indicators Collection Efficiency Collection Efficiency (1) Collection efficiency at normal levels Unique Customers (2) 98.0% 98.8% 98.5% 98.5% 98.3% 98.5% 98.0% 98.8% 98.9% 98.7% 98.5% 99.3% 98.8% 98.4% 97.3% 98.5% 97.3% 97.4% 97.4% 97.3% 97.8% 97.3% 97.7% 97.5% 97.5% 97.4

  31. Slide 31: Sound Credit Indicators

    Business Updates Sound Credit Indicators DPD 1+ / POS DPD 30+ / POS % Stage 3 / POS Stage 2 / POS 6.2% Asset quality at 5.3% 4.1% 4.4% 4.7% 4.4% 4.5% 3.7% 4.0% 4.0% 4.3% 3.3% healthy levels 1.8% 3.0% 2.7% 2.9% 2.9% 3.2% 2.7% 2.0% 2.3% 1.7% 1.9% 1.8% 1.6% 1.6% 1.6% 1.7% 0.8% 1.0% 2.3% 0.9% 1.4% 1.1%

  32. Slide 32: Diversified funding profile at competitive Cost of Borrowing

    Business Updates Diversified funding profile at competitive Cost of Borrowing DA Borrowings Mix and Cost of Borrowing trend Co-Lending NCD Total Borrowings NHB Refinance 40,039 40,150 44,919 48,387 52,281 58,009 59,556 68,215 72,792 (₹Mn) (1) NBFC Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'

  33. Slide 33: ALM Position as of Sep'23 - Cumulative

    Business Updates ALM Position as of Sep’23 - Cumulative Inflow Outflow Surplus 19,007 21,833 23,087 25,228 35,921 23,052 (₹Mn) Robust ALM 1,39,404 profile ensuring sufficient liquidity 1,19,892 buffers 1,16,352 86,092 83,971 Cumulative Positive flows 60,864 across all the 46,103 time buckets 34,871 26,404

  34. Slide 34: Assignment and Co-lending Transactions

    Business Updates Assignment and Co-lending Transactions Direct Assignment Transactions Co-Lending Transaction ₹3,003 Mn ₹4,646 Mn ₹3,784 Mn ₹2,614 Mn Consistent demand for assignment 1,844 of the company’s portfolio 1,471 1,273 1,159 1,183 1,140 1,154 1,143 1,050 502 879 857 894 Generated 348 350 77

  35. Slide 35: Strong Liquidity Position

    Business Updates Strong Liquidity Position Liquidity Buffer as on Sep’23 (in ₹Mn) Unencumbered Cash and Cash equivalent 8,023 Un-availed Sanction from NHB 4,500 Un-availed Sanction from Banks 13,645 Total 26,168 ₹ 18,284 million Liquidity raised during Q2FY24 Particulars (in ₹Mn) Q3FY24 Q4FY24 Q1FY25

  36. Slide 36: Financial Updates

    Financial Updates

  37. Slide 37: Financial Highlights

    Financial Updates Financial Highlights Profit After Tax ( ₹Mn ) Net worth ( ₹Mn ) Equity Raised 1508 3281 3450 32 53 18 29 53 15 21 ( ₹Mn ) 2,283 (1) 1,741 Robust NW to Strong profit growth 18,173 18,173 18,680 19,467 15,737 16,856 17,483 support growth 1,001 13,805 796 743 691 9,334 457 640 543 587 5

  38. Slide 38: ECL Provisions Summary

    Financial Updates ECL Provisions Summary Loan Particulars (in ₹Mn) Stage 1 Stage 2 Stage 3 Commitment Total For period ended Sep’23 Loans – Principal Outstanding 68,819.7 831.9 1,233.4 70,885.0 ECL Provision 186.3 71.2 374.2 13.8 645.5 Net Loans – Principal Outstanding 68,633.4 760.7 859.2 70,239.5

  39. Slide 39: Annexures

    Annexures

  40. Slide 40: Quarterly and Annual Profit and Loss Statement

    Financial Updates Quarterly and Annual Profit and Loss Statement Particulars (in ₹Mn) Q2FY24 Q1FY24 Q2FY23 QoQ YoY FY23 FY22 YoY Interest Income on term loans 2,347.8 2,166.2 1,637.2 8.4% 43.4% 6,825.0 4,770.5 43.1% Net gain on DA 151.4 125.7 93.3 380.4 678.4 Income other than interest income on ter

  41. Slide 41: RoE Tree

    Financial Updates RoE Tree Particulars Q2FY24 Q1FY24 Q2FY23 FY23 FY22 Interest Income on term loans / Average total assets 12.0% 12.1% 11.4% 11.5% 9.9% Net Gain on DA / Average total Assets 0.8% 0.7% 0.7% 0.6% 1.4% Income other than interest income on term loans/ Average total assets 1.4% 1.7% 1.1%

  42. Slide 42: Key Financial Ratios

    Financial Updates Key Financial Ratios Particulars Q2FY24 Q1FY24 Q2FY23 FY23 FY22 Profit after tax on average total assets (ROA) 3.8% 3.9% 3.8% 3.9% 3.6%(1) Leverage (Average total assets / average Equity 4.1 3.9 3.5 3.5 3.3 or average Net worth) Profit after tax on average equity or average Net 15.

  43. Slide 43: Balance Sheet

    Financial Updates Balance Sheet Particulars (in ₹Mn) Sep’23 FY23 FY22 ASSETS Cash & cash equivalents and Other bank 4,885.0 2,984.1 6,678.5 balance Loans 70,253.3 59,957.0 43,048.7 Investments 3,556.9 2,808.0 0.0 Other financial assets 1,294.2 1,241.0 1,164.8 Property, plant and Equipment* 256.2 253

  44. Slide 44: Consistent Financial Performance over the years

    Financial Updates Consistent Financial Performance over the years Particulars (in ₹Mn) FY17 FY18 FY19 FY20 FY21 FY22 FY23 CAGR % Operational Information Number of Branches 36 42 60 68 72 80 111 Loan disbursals 4,244 7,455 15,728 16,183 10,966 20,305 30,129 AUM 8,473 13,559 24,436 36,184 41,411 53,80

  45. Slide 45: Experienced and Diverse Board

    Leadership Experienced and Diverse Board 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

  46. Slide 46: Thank You

    Thank You For further information, please contact Company CIN: L65990MH2010PLC240703 Mr. Manish Kayal, Head - Investor Relations manish.kayal@homefirstindia.com Investor Relations - HomeFirst investor.relations@homefirstindia.com

  47. Slide 47: 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

  48. Slide 48: by homefirst

    by homefirst ing " DSO ODON Done! Thaf to sign the loan process...now you can one: iat was agreoment, ea -Sign! ¥ Great idea) 2 ‘0. quick and easy! 4 2 i Ly a de ) A A Wag = Sign! ca ‘ es ‘ou_call takin \ tn E-turn! 7 Hehel Save paper) a Save trees J Z al |

Home First Finance Company India — Q2 FY24 Earnings Presentation on 6ix