Home First Finance Company India Ltd. · NSE:HOMEFIRST
Home First Finance Company India — Shareholder Meeting (June 2022)
29 slides from Home First Finance Company India's shareholder meeting presentation, Jun 10, 2022
Slide 1: Exchange filing cover letter for AGM presentation
HFFCIL/BSE/NSE/EQ/39/2022-23 Date: 10-06-2022 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
Slide 2: 13th Annual General Meeting - Financial Year 2022
13th Annual General Meeting - Financial Year 2022 Presentation by Manoj Viswanathan, MD & CEO Tech in Mind. Service at Heart. Smart Loans for Affordable Homes! 10th June, 2022
Slide 3: Agenda
Agenda Who We Are FY22 Executive Summary Opportunity & Drivers Strategic Priorities - Tech In Mind - Scale & Growth - Operational Efficiency - Funding - Risk Management - ESG Management Board 2 FY22 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 91% of book comprise of housing loans with average ticket size of ₹1.05Mn Strong liquidity
Slide 5: Our Journey
Our Journey IndiaRatings: Scalable operating model CARE Rating CARE / ICRA Rating Assigned AA- Stable We got listed BBB- BBB+ A- A+ AA- Warburg Pincus ₹53,803 Mn ICRA: Rating invested in Outlook improved the company (2) to A+ Positive A+ Series C AUM (Mar’22) 60,000+ sanctions True North acquires A
Slide 6: Executive Summary | FY22
y-o-y Executive Summary | FY22 Assets Under Management (AUM) Disbursement Gross Stage 3 / POS (GNPA %) ₹53,803 Mn ₹20,305 Mn 2.3%(1) In line with RBI circular dated 12 Nov 2021 +29.9% +85.2% +8.2% 1.3% prior to such classification Spread(2) Cost to Income Opex to Assets 5.6% 34.0% 2.7% +60 bps -500
Slide 7: Consistent Portfolio Metrics | Mar'22
Consistent Portfolio Metrics | Mar’22 1% 1% 7% 1% AUM by Product AUM by Occupation Housing Loan 27% Salaried Shop Loans Self Employed LAP Corporate Developer Finance Sharp focus on High ratio of 91% 72% housing loans salaried customers 74% 2% 9% AUM by Credit history AUM by Ticket Size 7% Have Credi
Slide 8: Financial Highlights
Financial Highlights Profit After Tax ( ₹Mn ) Net worth ( ₹Mn ) Equity Raised 1508 3281 3450 32 11 18 26 6 ( ₹Mn ) (1) 1,741 15,737 15,100 15,737 13,805 14,173 14,627 Strong profit growth Robust NW to 1,001 despite maintaining 9,334 support growth 796 (1) 457 449 459 482 high liquidity and 5,227 351 c
Slide 9: Opportunity & Growth Drivers
Opportunity & Growth Drivers 8
Slide 10: Affordable Housing Opportunity
Affordable Housing Opportunity • Housing demand goes India vs China: Mortage to GDP & Per Capita Income Trend USA: Per Capita Income vs Mortgage Penetration (% of GDP) (In USD PPP Adjusted) hand in hand with per- capita income. India’s house ownership lower vis-à-vis global peers. • India’s Mortgage
Slide 11: Increasing Middle Class Population
Increasing Middle Class Population • India to be the largest Middle class population globally by 2050. • Rising Middle Class households big driver of housing demand in India. • Lower Middle Income households (HomeFirst target segment) will increase from 97 Mn (2018) to 132 Mn in 2030 • Pyramid struc
Slide 12: Rising Exports
Rising Exports • India’s Merchandise Exports at all time high, crossed USD 400 Bn for the first time. • HomeFirst’s presence in States having high export share in overall India exports. 30.9% 29.7% 10MFY22 2.7% 4.8% 8.4% 17.5% 6.0% Gujarat Maharashtra Tamil Nadu Karnataka Andhra Pradesh Telangana Ot
Slide 13: Opportunity Size & Drivers
Opportunity Size & Drivers • As per Knight Frank, total opportunity of ₹ 12 Lakh Crores (around USD 146bn) between FY19-30. • Multiple drivers like government push, tax sops, affordability, urbanisation, etc. Government Initiatives Urbanisation Changing dynamics of Housing Loan Rising Population and
Slide 14: Payment digitalization will be the catalyst for our growth
Payment digitalization will be the catalyst for our growth UPI expected to deliver 30% CAGR UPI – Key to Payment Digitalisation in India (FY 22-26) in value terms • UPI’s rising share in total payments and substantial contribution by “Loan Repayments” in BBPS supports HomeFirst tech led journey. • I
Slide 15: Strategic Priorities
Strategic Priorities 14
Slide 16: Strategic Priorities
6 Strategic Priorities Tech In Mind Scale & ESG Growth Strategic Priorities Risk Operational Management Efficiency Funding 15 FY22 AGM Presentation
Slide 17: Tech In Mind: End-to-end digital process for housing loans
Tech In Mind Tech Interventions E-NACH API Integration with third party Home First App for all stakeholders E- Sign databases E- Vault 360 o view of customer for employees Proprietary property price predictor E-Stamp paper Electronic payments Instant Soft Approval on App Machine learning models to a
Slide 18: Scale & Growth
0 -4 4-7 7 - 15 Scale & Growth Contribution to India's GDP FY’21 ( %) Existing branches - 80 New branch locations - 63 Pan India Distribution driven by strategic market selection & contiguous expansion Digital branches - 57 80 98 13 200 Distribution Strategy Branches Districts States/UT Touchpoints
Slide 19: Market selection linked to high volumes
Market selection linked to high volumes (In mn) Ten states account for ~76% of the urban housing shortage 3.5 3.07 3 ~76% of the total urban housing shortage is 2.5 contributed by 10 states 1.94 2 1.5 1.33 1.27 1.25 1.19 1.15 1.1 1.02 0.99 1 0.63 0.54 0.49 0.42 0.41 0.39 0.5 0.35 0.28 0.21 0.16 0 Ut
Slide 20: Operational Efficiency
Operational Efficiency • Empower our employees through training, talent management and fast track growth for high performers to build a strong performance Disbursement/Employee (in ₹ Mn) culture. Create an inclusive workplace with a diverse workforce. • Automate manual activities and in turn spend m
Slide 21: Funding - Diversified profile at competitive cost of borrowing
Funding - Diversified profile at DA NCD COB% (Represents quarterly avg.) competitive cost of borrowing NHB Refinance NBFC Public Sector Banks Borrowings Mix and Cost of Borrowing trend India Ratings assigned Pvt Sector Banks “IND AA-/Stable” for Bank loans and NCD 100% 10.00% 21%90% 19% 22% 8.5% 21% 2
Slide 22: Risk Management
Risk Management Strengthen the Risk Management Framework • Our growth priorities and aspirations are underpinned by a sound risk mitigation strategy, held together by a 360 degree risk management framework. • As we scale our operations and expand our reach, we will continue to invest on enhancing ou
Slide 23: ESG
ESG Environmental Social Governance • Paperless Operations. Cloud based CRM & LMS. Customers: • Separate Chairman & Managing Director position. • Mobile Apps for connectors, relationship managers and • Key role in Financial Inclusion as EWS and LIG customers account for 75%+ of AUM. customers. • Hel
Slide 24: Distinguished Board & Strong Management Team
Distinguished Board & Strong Management Team
Slide 25: Distinguished Board of Directors
Distinguished Board of Directors Chairman Deepak Satwalekar & Independent Director Ex MD, CEO - HDFC Life Geeta Goel Michael and Anuj Srivastava Sucharita Mukherjee Independent Directors Country Director - Susan Dell CEO - Livspace CEO – Kaleidofin Pvt Ltd Dell Foundation Foundation Divya Sehgal Man
Slide 26: Distinguished Board of Directors
Distinguished Board of Directors Board of Directors Mr. Deepak Satwalekar Ms. Geeta Dutta Goel Mr. Anuj Srivastava Chairman/ Independent/ Non-Executive Director Independent/ Non-Executive Director Independent/ Non-Executive Director Deepak Satwalekar was previously associated with HDFC Ms. Geeta Dut
Slide 27: Experienced Management Team
Experienced Management Team Manoj Viswanathan MD & CEO 25+ years in Consumer Lending. 11 years with Citigroup. Ajay Khetan Gaurav Mohta Vilasini Subramaniam Chief Business Officer Chief Marketing Officer Head – Strategic Alliances 22+ years in Consumer Lending & 19+years in Consumer Lending and 19+ year
Slide 28: Thank You
Thank You For further information, please contact Company Investor Relations Advisors CIN: L65990MH2010PLC240703 Mr Ashish Chovatia Mr. Manish Kayal, Head - Investor Relations +91 9930044680 manish.kayal@homefirstindia.com ashish.chovatia@linkintime.co.in Investor Relations - HomeFirst investor.relat
Slide 29: 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
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