Home First Finance Company India Ltd. · NSE:HOMEFIRST
Home First Finance Company India — Q4 FY24 Earnings Presentation
50 slides from Home First Finance Company India's earnings presentation, May 8, 2024
Slide 1: Exchange filing cover letter
HFFCIL/BSE/NSE/EQ/10/2024-25 Date: 08-05-2024 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 India Limited
Home First Finance Company India Limited
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: FY24 Highlights
FY24 Highlights Executive Summary | FY24 y-o-y Assets Under Management (AUM) Disbursement Gross Stage 3 / POS (GNPA) ₹ 96,978 Mn ₹39,634 Mn 1.7%(1) In line with RBI circular dated 12 Nov 2021 1.1% prior to such classification +34.7% +31.5% +10 bps Spread(2) Opex to Assets DPD 30+ / POS 5.5% 2.9% 2.8
Slide 5: Q4FY24 Highlights
Q4FY24 Highlights Executive Summary | Q4FY24 y-o-y q-o-q Assets Under Management (AUM) Disbursement Gross Stage 3 / POS (GNPA) ₹ 96,978 Mn ₹11,019 Mn 1.7%(1) In line with RBI circular dated 12 Nov 2021 1.1% prior to such classification +34.7% +7.6% +26.8% +9.4% +10 bps 0 bps Spread(2) Opex to Assets
Slide 6: MD & CEO Commentary on Q4 FY24 and FY24 Performance
MD Commentary MD & CEO Commentary on Q4 FY24 and FY24 Performance “We are happy to conclude FY24 on a strong base & we continue the growth momentum forward to FY25. This has been supported by the booming Indian economy and strong tailwinds which has a positive effect on the housing demand coupled wi
Slide 7: HomeFirst – Who are We?
HomeFirst – Who We Corporate Information Are? HomeFirst – Who are We? MorningStar Sustainalytics Technology driven affordable housing ESG Risk Rating finance company with pan India presence ‘Amongst Leading Ratings in BFSI Sector’ Home loans to first time home buyers with predominant focus on salaried
Slide 8: 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) Scalable operating model AUM crosses ₹75 bn. ₹ 96,978 Mn 100+ Physical Branches 96,978 Assets Under Management We got listed 1,00,000+ Customers W arburg P
Slide 9: Shareholding as on May'24
Corporate Information Shareholding as on 03 May’24 PROMOTER & PROMOTER GROUP % Holding TRUE NORTH FUND V LLP 14.2 AETHER (MAURITIUS) LIMITED (GIC)^ 9.4 KEY INVESTORS % Holding ORANGE CLOVE INVESTMENTS B.V (WARBURG PINCUS) 23.1 MFS & AIFS % Holding* Public & Others 16.9% 14.2% TRUE NORTH FUND V LLP I
Slide 10: Distinguished Board of Directors
Leadership Distinguished Board of Directors 09 Home First Finance Company India Ltd. Investor Presentation – Q4 FY24
Slide 11: Experienced Management Team
Leadership Experienced Management Team 14 26 12 24 13 21 9 21 Ajay Khetan Gaurav Mohta Vilasini Subramaniam Chief Business Officer Chief Marketing Officer Head – Strategic Alliances Education: B-Tech BITS, Pilani and PGDM XLRI Education: NIT Allahabad and PGDM XIM-B Education: B-Tech Nagpur University a
Slide 12: Meet Our Customers
Corporate Information Meet Our Customers Formal Salaried Informal Salaried Self Employed Salaried Self Employed Customer 3 Customer 1 Customer 2 Age:38 / Location: Indore 68% Age: 46 / Location: Hyderabad 32% Age: 46 / Location: Haridwar Who are they? Govt. employee - working at Nagar Nigam, has a t
Slide 13: 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
Slide 14: 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 - 133 321 Proposed branches - 64 Touchpoints Digital branches - 124 133 131 13 321 Branches District
Slide 15: Omni Channel Lead Generation Strategy
Corporate Information Omni Channel Lead Generation Strategy Diversified lead generation channels | Q4 FY24 76.2% Diversified channels for generating leads such as connectors, builder ecosystem, digital, etc. 100% in-house conversion 8.2% by HomeFirst RMs. 1.7% 1.2% 2.5% 2.7% 3.5% 3.6% 0.4% Constructio
Slide 16: 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
Slide 17: 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
Slide 18: Digital Adoption
Corporate Information Digital Adoption Customer Rating on Google Unique user logins as % of active Playstore % Customers registered on App customers 93% 93% 94% 94% 95% 4.1 57% 55% 54% Average payment per user on 54% 53% As of 06 May’24 app ₹34,009 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2
Slide 19: Building the Brand HomeFirst
Corporate Information Building the Brand HomeFirst 18 Home First Finance Company India Ltd. Investor Presentation – Q4 FY24
Slide 20: ESG at HomeFirst
ESG at HomeFirst Putting sustainability at core of operations
Slide 21: 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
Slide 22: 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
Slide 23: Progress on Social Development
ESG Progress on Social Development Sashakt Stories Responsibility towards community Responsibility towards employees Project Sashakt : 3,500+ families touched Skilling & Employement | Education & Development | Health Employee Training and Development Initiatives | Financial Literacy Formal talent pi
Slide 24: Progress on Social Development
ESG Progress on Social Development 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 25: 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
Slide 26: 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
Slide 27: Business Updates
Business Updates
Slide 28: Healthy Growth in Loan Book and Disbursements
Business Updates Healthy Growth in Loan Book and Disbursements Disbursement ( ₹Mn ) Last 5 Years Last 5 Quarters 11,019 10,072 39,634 9,591 8,691 8,952 All time high disbursement in the quarter 30,129 Q-o-q growth of 9.4% and y-o-y growth of 20,305 16,183 26.8% 10,966 FY20 FY21 FY22 FY23 FY24 Q4FY23
Slide 29: Consistent Portfolio Matrix
Business Updates Consistent Portfolio Matrix | Mar’24 13% 32% 1% AUM by Product AUM by Occupation Salaried Housing Loan Shop Loans Self Employed LAP Sharp focus on High ratio of 86% housing loans 68% salaried customers 83% 1% 13% 17% AUM by Credit history AUM by Ticket Size 11% Upto 0.5mn AVG: 744 H
Slide 30: Competitive Spreads
Business Updates Competitive Spreads 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% 13.7% 13.6%
Slide 31: 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% 14.5% 14.9% 15.0% 14.2% 15.1% 14.7% 15.3% 14.0% 13.6% 10.0% 10.9% 10.5% 9.5% Q1FY20 Q2FY20 Q3F
Slide 32: Healthy Leading Indicators
Business Updates Healthy Leading Indicators Collection Efficiency Collection Efficiency (1) Collection efficiency at normal levels Unique Customers (2) 98.3% 98.3% 98.7% 98.4% 98.6% 99.1% 99.3% 98.0% 98.8% 98.5% 98.5% 98.3% 98.5% 98.7% 98.5% 97.3% 97.7% 97.5% 97.5% 97.4% 97.4% 97.3% 97.2% 97.3% 97.3% 97.4
Slide 33: Sound Credit Indicators
Business Updates Sound Credit Indicators 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% 3.7% 4.0% 4.2% 4.0% 4.3% 4.2% 3.0% healthy levels 1.8% 2.8% 2.7% 2.9% 2.9% 2.8% 2.7% 2.0% 2.3% 1.7% 1.6% 1.7% 1.7% 1.7% 1.6% 1.6% 1.0% 2.3% 0.9% 1.4% 1.1%
Slide 34: 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 44,919 48,387 52,281 58,009 59,556 68,215 72,792 82,514 87,954 (₹Mn) (1) NBFC Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'
Slide 35: ALM Position as of Mar'24 - Cumulative
Business Updates ALM Position as of Mar’24 - Cumulative Inflow Outflow Surplus 15,357 16,078 17,018 22,715 36,298 17,914 (₹Mn) 1,47,962 Robust ALM profile ensuring 1,31,218 1,30,048 sufficient liquidity buffers 91,641 94,920 Cumulative 68,926 Positive flows across all the 44,444 time buckets 31,050 24,178
Slide 36: Assignment and Co-lending Transactions
Business Updates Assignment and Co-lending Transactions Direct Assignment Transactions Co-Lending Transactions ₹3,003 Mn ₹4,646 Mn ₹3,784 Mn ₹6,278 Mn Consistent demand for assignment 1,956 1,844 of the company’s 1,708 portfolio 1,471 609 1,273 1,159 1,183 1,140 1,154 1,143 676 1,050 502 879 857 894
Slide 37: Strong Liquidity Position
Business Updates Strong Liquidity Position Liquidity Buffer as on Mar’24 (in ₹Mn) Unencumbered Cash and Cash equivalent 11,560 Un-availed Sanction from NHB 2,500 Un-availed Sanction from Banks 6,488 Total 20,548 ₹ 44,215 million Liquidity raised during FY24 Particulars (in ₹Mn) Q1FY25 Q2FY25 Q3FY25 Q
Slide 38: Financial Updates
Financial Updates
Slide 39: Financial Highlights
Financial Updates Financial Highlights Profit After Tax ( ₹Mn ) Net worth ( ₹Mn ) Equity Raised 3281 3450 32 53 62 53 15 21 36 62 ( ₹Mn ) 3,057 2,283 21,215 21,215 Robust NW to (1) Strong profit growth 18,680 19,467 20,318 1,741 18,173 18,173 15,737 support growth 13,805 1,001 788 835 796 743 9,334 69
Slide 40: ECL Provisions Summary
Financial Updates ECL Provisions Summary Loan Particulars (in ₹Mn) Stage 1 Stage 2 Stage 3 Commitment Total For period ended Mar’24 Loans – Principal Outstanding 79,817.0 915.8 1,393.4 82,126.2 ECL Provision 202.0 75.5 414.4 16.9 708.8 Net Loans – Principal Outstanding 79,615.0 840.3 979.0 81,417.4
Slide 41: Annexures
Annexures
Slide 42: Quarterly and Annual Profit and Loss Statement
Financial Updates Quarterly and Annual Profit and Loss Statement Particulars (in ₹Mn) Q4FY24 Q3FY24 Q4FY23 QoQ YoY FY24 FY23 YoY Interest Income on term loans 2,673.3 2,508.9 1,937.2 6.5% 38.0% 9,696.1 6,825.0 42.1% Net gain on DA 147.7 206.3 112.0 631.1 380.4 Income other than interest income on te
Slide 43: RoE Tree
Financial Updates RoE Tree Particulars Q4FY24 Q3FY24 Q4FY23 FY24 FY23 Interest Income on term loans / Average total assets 11.6% 11.8% 11.7% 11.9% 11.5% Net Gain on DA / Average total Assets 0.6% 1.0% 0.7% 0.8% 0.6% Income other than interest income on term loans/ Average total assets 1.5% 1.3% 1.6%
Slide 44: Key Financial Ratios
Financial Updates Key Financial Ratios Particulars Q4FY24 Q3FY24 Q4FY23 FY24 FY23 Profit after tax on average total assets (ROA) 3.6% 3.7% 3.9% 3.8% 3.9% Leverage (Average total assets / average Equity 4.5 4.3 3.7 4.1 3.5 or average Net worth) Profit after tax on average equity or average Net 16.1%
Slide 45: Balance Sheet
Financial Updates Balance Sheet Particulars (in ₹Mn) FY24 FY23 ASSETS Cash & cash equivalents and Other bank balance 8,215.1 2,984.1 Loans 81,434.4 59,957.0 Investments 3,788.1 2,808.0 Other financial assets 1,440.7 1,241.0 Property, plant and Equipment* 298.2 253.5 Deferred Tax Assets (Net) 31.2 28
Slide 46: Consistent Financial Performance over the years
Financial Updates Consistent Financial Performance over the years 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 47: 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
Slide 48: 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
Slide 49: 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 50: by homefirst
by homefirst Another waste of time! Wu These plastic bags will go into the sea Why should I refuse. plastic and choke it. The fish will eat this plastic bags that come free? and you will be making plastic fish curry! & i pS pias
Home First Finance Company India — Q4 FY24 Earnings Presentation on 6ix