Home First Finance Company India Limited — Important, 28-01-2025: Financial Result Updates

Total revenue for the quarter ended December 31, 2024, reached ₹ 4,059.47 crore, reflecting a year-over-year growth of 9.12% from ₹ 3,720.16 crore. This increase can be primarily attributed to a rise in interest income due to the expansion of the loan portfolio and operational improvements within the company's affordable housing segment.

Net profit for the quarter stood at ₹ 973.83 crore, compared to ₹ 922.25 crore in the same quarter last year, marking an increase of 5.6%. The Earnings Per Share (EPS) for this quarter is ₹ 10.50, up from ₹ 10.36 a year earlier. The profitability was supported by effective cost management and increased operational efficiency, although rising finance costs were a notable factor.

Operational costs grew by approximately 9.38% to ₹ 2,776.34 crore, driven primarily by higher finance costs and employee benefits. Notably, employee benefits increased to ₹ 507.87 crore, reflecting ongoing investments in human capital in alignment with expansion efforts.

The balance sheet indicates a solid financial position, with total assets increasing in proportion to total liabilities, ensuring a healthy debt-to-equity ratio. The cash flow situation remains stable, allowing for upcoming growth initiatives, including a proposed Qualified Institutions Placement (QIP) to raise up to ₹ 1,250 crore.

Given these results, the sentiment towards the company's strategic position appears positive, supporting a view of 'buy' based on growth potential and solid financial ratios, offsetting the concerns related to rising operational costs.