Home First Finance Company India Limited Results Q2, FY22

Piramal Capital & Housing Finance Ltd. raises INR 4,050 Crores via issuance of Non-Convertible Debentures (NCDs)

Key Highlights for Q2 FY22:

Asset under Management (AUM):

Ÿ INR 4,617 Crs, growth of 23.8% over Q2 FY21.

Ÿ Sharp focus on housing loans that contribute 92% of AUM and EWS / LIG category that forms ~77%

of the customer base.

Distribution:

Ÿ As of Sept’21, the Company has 72 branches with a presence in 12 States and 1 Union Territory.

Ÿ Business commenced in 14 new branch locations. In addition, 10 new digital branches have been launched taking the total number of touchpoints to 161.

Disbursements:

Ÿ Disbursements of INR 515 Crs in Q2 FY22, y-o-y growth of 111.9%.

Asset Quality:

Ÿ Bounce rates have improved to 15.0% in Oct’21 and 16.5% in Q2FY22 from 18.3% in Q1 FY22.

Ÿ 1+ DPD improved from 8.9% to 7.6% on q-o-q basis.

Ÿ 30+ DPD improved from 5.8% to 5.2% on q-o-q basis.

Ÿ Gross Stage 3 is at 1.7% and Net Stage 3 is at 1.2%

Ÿ 0.3% of POS restructured in Q2 FY22. Total Restructuring 2.0 at 0.8% as of Sep’21.

Provisions:

Ÿ ECL provision as of Sep’21 is INR 49.6 Crs; resulting in total provision to loans outstanding ratio at 1.3%, and the Stage 3 provision coverage ratio is at 77.4%.

Borrowings:
Ÿ Total borrowings including debt securities are at INR 3,075 Crs as of Sep’21 up from INR 2,637 Crs as of Sep’20. The company continues to carry a liquidity of INR 1,400 Crs as of Sep’21.

Ÿ Cost of borrowings reduced further from 7.2% in Q1 FY22 to 7.1% in Q2 FY22. It is lower by 120 bps compared to Q2 FY21 which stood at 8.3%.

Spread:

Ÿ Spread on loans stood at 5.6% in Q2 FY22 compared to 5.5% in Q1 FY22 and 4.8% in Q2 FY21.

Capital Adequacy:

Ÿ Total CRAR at 56.4%. Tier I capital stands at 55.2% as of Sep’21.

Ÿ Networth as of Sep’21 is at INR 1463 Crs vis-à-vis INR. 988 Crs as of Sep’20.

Financial Performance:

Ÿ Q2 FY22 Total Income at INR 146 Crs; y-o-y growth of 34% from INR 109 Crs in Q2 FY21, a sequential increase of 3.1% over Q1 FY22 of INR 142 Crs.

Ÿ Q2 FY22 PAT at INR 45 Crs, sequentially up by 27.8% from INR 35 Crs in Q1 FY22.