Home First Finance Company India Ltd. · NSE:HOMEFIRST

Home First Finance Company India — Q2 FY25 Earnings Presentation

48 slides from Home First Finance Company India's earnings presentation, October 2024

  1. Slide 1: Home First Finance Company Investor Presentation Q2FY25

    Home First Finance Company Investor Presentation Q2FY25

  2. Slide 2: 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

  3. Slide 3: Q2FY25 Highlights

    Q2FY25 Highlights Executive Summary | Q2FY25 y-o-y q-o-q Assets Under Management (AUM) Disbursement Gross Stage 3 / POS (GNPA) ₹1,12,294 Mn ₹11,768 Mn 1.7%(1) In line with RBI circular dated 12 Nov 2021 1.3% prior to such classification +34.2% +7.2% +22.7% +1.2% 0 bps 0 bps Spread(2) Opex to Assets

  4. Slide 4: MD & CEO Commentary on Q2 FY25

    MD Commentary MD & CEO Commentary on Q2 FY25 “We are pleased with the company’s strong performance during the quarter. We continue to expand deeper into our existing markets with the addition of 9 branches and 8 touch points in Q2 taking the total branch count to 142 branches and touch point count t

  5. Slide 5: 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

  6. Slide 6: 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. 1,12,294 AUM crosses ₹75 bn. 1,12,294 100+ Physical 96,978 ₹ Mn Branches We got listed 1,00,000+ Assets Under Management Customers Sca

  7. Slide 7: Shareholding as on 18 Oct'24

    Shareholding as on 18 Oct’24 Corporate Information PROMOTER & PROMOTER GROUP % Holding TRUE NORTH FUND V LLP 14.1 AETHER (MAURITIUS) LIMITED (GIC)^ 9.3 KEY INVESTORS % Holding ORANGE CLOVE INVESTMENTS B.V (WARBURG PINCUS) 22.9 MFS & AIFS % Holding* INVESCO INDIA MF 2.7 Public & Others 15.5% 14.1% TR

  8. Slide 8: 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

  9. Slide 9: Experienced Management Team

    Leadership Experienced Management Team 14 26 12 24 13 21 9 21 Manoj Viswanathan Ajay Khetan Gaurav Mohta Vilasini Subramaniam Chief Executive Officer Chief Business Officer Chief Marketing Officer Head - Strategic Alliances Education: B-Tech BITS, Pilani and PGDM XLRI Education: NIT Allahabad and PGDM XIM

  10. Slide 10: 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

  11. Slide 11: 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

  12. Slide 12: Distribution Strategy

    Corporate Information Distribution Strategy 0 -4 4-7 7 - 15 Contribution to India's GDP FY’23 ( %) Physical branches - 142 Pan India Distribution driven by strategic market selection & contiguous expansion 351 Proposed branches - 74 Touchpoints Digital branches - 135 142 138 13 351 Branches District

  13. Slide 13: Omni Channel Lead Generation Strategy

    Corporate Information Omni Channel Lead Generation Strategy Diversified lead generation channels | Q2 FY25 76.7% Diversified channels for generating leads such as connectors, builder ecosystem, digital, etc. 100% in-house conversion 7.6% by HomeFirst RMs. 2.9% 4.8% 3.2% 0.3% 1.4% 1.0% 2.1% Constructio

  14. Slide 14: 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

  15. Slide 15: 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

  16. Slide 16: Digital Adoption

    Corporate Information Digital Adoption Customer Rating on Google Unique user logins as % of active Playstore % Customers registered on App customers 94% 94% 95% 95% 95% 4.2 Average payment per user on 54% 54% 53% 50% 50% As of 21 Oct’24 app ₹38,967 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4

  17. Slide 17: Building the Brand HomeFirst

    Corporate Information Building the Brand HomeFirst Home First Finance Company India Ltd. Investor Presentation – Q2 FY25 17

  18. Slide 18: ESG at HomeFirst

    ESG at HomeFirst Putting sustainability at core of operations

  19. Slide 19: 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

  20. Slide 20: 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

  21. Slide 21: Progress on Social Development

    Progress on Social Development ESG Sashakt Stories Responsibility towards community Responsibility towards employees Vimlaben Kaushal Project Sashakt : 3,500+ families touched Sashakt Beneficiary Sashakt Beneficiary Skilling & Employment | Education & Development | Health Tailoring, Work from Home D

  22. Slide 22: 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

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: Business Updates

    Business Updates

  26. Slide 26: 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 11,625 11,768 11,019 22.7% growth y-o-y on disbursements 9,591 10,072 30,129 20,305 16,183 10,966 FY20 FY21 FY22 FY23 FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Assets Under Managemen

  27. Slide 27: Consistent Portfolio Matrix | Sep'24

    Consistent Portfolio Matrix | Sep’24 Business Updates 14% 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 85% 85% 1% 14% 15% AUM by Credit history AUM by Ticket Size 12% Upto 0.5mn AVG: 745 H

  28. Slide 28: 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% 13.7% 13.6% 13.5%

  29. Slide 29: 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% 14.5% 14.0% 15.6% 14.9% 13.6% 15.0% 14.2% 15.1% 14.7% 15.3% 15.2% 15.6% 9.5% 10.0% 10.9% 10.5% Q1FY2

  30. Slide 30: Healthy Leading Indicators

    Healthy Leading Indicators Business Updates Collection Efficiency Collection Efficiency (1) Collection efficiency at normal levels Unique Customers (2) 98.1% 98.6% 98.8% 98.5% 98.5% 98.3% 98.3% 98.7% 98.4% 98.6% 99.1% 98.5% 98.5% 98.3% 97.4% 98.5% 97.2% 97.3% 97.3% 97.4% 97.7% 97.4% 97.6% 97.6% 97.7% 97.6

  31. Slide 31: 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% 4.4% 4.5% 4.5% 4.5% 4.5% 3.7% 4.0% 4.2% 4.2% 2.9% 3.0% 2.9% healthy levels 1.8% 2.7% 2.8% 2.8% 2.8% 2.0% 2.3% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.6% 1.0% 2.3% 0.9% 1.4% 1.1%

  32. Slide 32: 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 52,281 58,009 59,556 68,215 72,792 82,514 87,954 95,120 1,05,869 (₹Mn) (1) NCD NHB Refinance Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Mar'24 Jun

  33. Slide 33: ALM Position as of Sep'24 - Cumulative

    ALM Position as of Sep’24 - Cumulative Business Updates Inflow Outflow Surplus 17,587 25,597 25,717 24,984 35,651 20,989 (₹Mn) 1,85,124 Robust ALM profile ensuring 1,64,135 1,58,067 sufficient liquidity buffers 1,22,416 1,13,041 Cumulative 88,057 Positive flows across all the 59,681 time buckets 45,325 33,

  34. Slide 34: 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 ₹3,816 Mn Consistent demand for assignment 1,956 1,936 of the company’s 1,880 1,708 portfolio 417 345 1,471 609 1,183 1,273 1,143 676 1,140 1,154 1,050 502 879

  35. Slide 35: Strong Liquidity Position

    Strong Liquidity Position Business Updates Liquidity Buffer as on Sep’24 (in ₹Mn) Unencumbered Cash and Cash equivalent 15,992 Un-availed Sanction from NHB 5,000 Un-availed Sanction from Banks 11,627 Total 32,619 ₹ 34,242 million Liquidity raised during H1FY25 Particulars (in ₹Mn) Q3FY25 Q4FY25 Q1FY2

  36. Slide 36: Financial Updates

    Financial Updates

  37. Slide 37: Financial Highlights

    Financial Highlights Financial Updates Profit After Tax ( ₹Mn ) Net worth ( ₹Mn ) Equity Raised 3281 3450 32 53 62 21 36 62 82 159 ( ₹Mn ) 3,057 2,283 22,895 21,215 21,215 21,876 Robust NW to (1) Strong profit growth 19,467 20,318 1,741 18,173 15,737 support growth 878 922 13,805 1,001 788 835 796 743

  38. Slide 38: ECL Provisions Summary

    ECL Provisions Summary Financial Updates Loan Particulars (in ₹Mn) Stage 1 Stage 2 Stage 3 Commitment Total For period ended Sep’24 Loans – Principal Outstanding 92,562.9 1,025.9 1,640.1 95,228.9 ECL Provision 221.2 103.9 438.6 23.6 787.3 Net Loans – Principal Outstanding 92,341.7 922.0 1,201.5 94,4

  39. Slide 39: Annexures

    Annexures

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

    Quarterly and Annual Profit and Loss Statement Financial Updates Particulars (in ₹Mn) Q2FY25 Q1FY25 Q2FY24 QoQ YoY FY24 FY23 YoY Interest Income on term loans 3,146.4 2,874.1 2,347.8 9.5% 34.0% 9,696.1 6,825.0 42.1% Net gain on DA 201.7 195.2 151.4 631.1 380.4 Income other than interest income on te

  41. Slide 41: RoE Tree

    RoE Tree Financial Updates Particulars Q2FY25 Q1FY25 Q2FY24 FY24 FY23 Interest Income on term loans / Average total assets 11.7% 11.6% 12.0% 11.9% 11.5% Net Gain on DA / Average total Assets 0.7% 0.8% 0.8% 0.8% 0.6% Income other than interest income on term loans/ Average total assets 1.5% 1.4% 1.4%

  42. Slide 42: Key Financial Ratios

    Key Financial Ratios Financial Updates Particulars Q2FY25 Q1FY25 Q2FY24 FY24 FY23 Profit after tax on average total assets (ROA) 3.4% 3.6% 3.8% 3.8% 3.9% Leverage (Average total assets / average Equity 4.8 4.6 4.1 4.1 3.5 or average Net worth) Profit after tax on average equity or average Net 16.5%

  43. Slide 43: Balance Sheet

    Balance Sheet Financial Updates Particulars (in ₹Mn) Sep’24 FY24 FY23 ASSETS Cash & cash equivalents and Other bank balance 12,358.6 8,215.1 2,984.1 Loans 94,465.2 81,434.4 59,957.0 Investments 4,086.0 3,788.1 2,808.0 Other financial assets 1,645.6 1,440.7 1,241.0 Property, plant and Equipment* 312.

  44. Slide 44: 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,

  45. Slide 45: 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

  46. Slide 46: Thank You

    Thank You For further information, please contact Company CIN: L65990MH2010PLC240703 Ms Nutan Gaba Patwari, Chief Financial Officer nutangaba.patwari@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: Why are you wasting

    Why are you wasting time and water?! T'm saving water! OOW: ee, Y) SACS — ~ =. . y Ne, - = by homefirst Water flows like droplets so no wastage with aerators! — 71T\\ (Only water aerators Be baba. Calm down! ~) Online shopping \ again?! 2) (G3 a) Now she's going with the flow! Hehe! Oa RS

Home First Finance Company India — Q2 FY25 Earnings Presentation on 6ix