Home First Finance Company India Limited — PPTs, 01-05-2025: Investor Presentation

1. Financial Highlights:

HomeFirst’s AUM rose 31.1% YoY to ₹12,713 Cr, with a 6.4% QoQ increase. FY25 disbursements grew 21.2% YoY to ₹4,805 Cr; Q4 disbursements rose 6.7% QoQ. PAT for FY25 improved 25.0% YoY to ₹382 Cr, and Q4 PAT surged 25.4% YoY to ₹105 Cr. Q4 RoA and RoE were at 3.5% and 17.0%, respectively. Asset quality remains solid with a Gross Stage 3 ratio of 1.7%. Cost of borrowing stands competitive at 8.4%, operating expenses are 2.7% of average assets, and the cost-to-income ratio hovers at 35.7%.

2. Strategic Initiatives & Growth Drivers:

HomeFirst expanded its reach by adding 40 touchpoints and 22 branches, now covering 141 districts across 13 states/UTs. Employee strength increased to 1,634, emphasizing frontline sales. The company drives efficiency via proprietary data science underwriting and digital end-to-end processes, including Account Aggregator integration and enhanced mobile apps, enabling 90% loan approvals within 48 hours. Digital adoption is strong with 96% active customers on the app. The ₹1,250 Cr capital raise through QIP bolsters capital adequacy to support growth plans.

3. Business Developments:

The ₹1,250 Cr QIP from marquee institutions enhances capital for deeper market penetration and customer engagement. Green financing advances with ₹280 Cr debt from IFC to back energy-efficient homes; 120 green homes certified to date. Funding diversity includes ties with 35 lenders, zero commercial paper exposure, and balanced ALM ensuring liquidity.

4. Market Position & Competitive Advantage:

HomeFirst commands a pan-India presence as a tech-driven affordable housing financier focused on first-time buyers earning under ₹50,000 pm. Housing loans comprise 84% of AUM, averaging ₹11.7 Lakh ticket size. Advantages include diversified borrowing, machine learning-led underwriting, and a customer-first model delivering quick approvals with minimal borrower disruption. Its AA- credit rating and low ESG risk score (16.2) support industry stability.

5. Investor Implications:

Strong earnings growth combined with healthy asset quality, ongoing geographic expansion, and enhanced capital adequacy points to positive growth potential. Tech-enabled underwriting and diverse funding reduce execution risks. Investors should watch asset quality trends and interest rate impacts on margins, while digital adoption and sustainable finance initiatives underpin operational efficiency and customer acquisition.