Home First India (HOMEFIRST) Q1 24/25 earnings summary

Executive summary

• Achieved AUM of ₹104,781 Mn (INR 10,478 crore), up 34.8% year-over-year, with disbursements rising 29.9% to ₹11,625 Mn.

• PAT for Q1 FY25 at ₹878 Mn, up 27% year-over-year, with ROE at 16.3% and ROA at 3.6%.

• Technology adoption remains high, with 95% customer app registration and 70%+ digital fulfillment.

• Expanded to 4 new districts and added 22 touchpoints, now covering 135 districts and 343 touchpoints.

• Maintained strong asset quality: Gross Stage 3 NPA at 1.7%, credit cost at 0.2% (20 bps), and collection efficiency at 97.3–98.7%.

Financial highlights

• Total income for Q1 FY25 rose 31.4% year-over-year to ₹3,413 Mn; net interest income up 18.9% to ₹1,310 Mn.

• Net worth at ₹21,876 Mn as of June 2024; book value per share at ₹246.

• Cost-to-income ratio at 35.6%; operating cost to assets at 2.7%.

• Gross margin improved with higher interest income and net gain on derecognition of financial instruments.

• Earnings per share (basic) for Q1 FY25 was ₹9.90, up from ₹7.85 in Q1 FY24.

Outlook and guidance

• Plans to open 20–25 new branches in FY25, continuing geographic expansion.

• Annual ROE guidance of 16.2%-16.5% for FY25, with 50-75 bps improvement expected annually.

• AUM growth trajectory of 30%+ expected to continue, with strong demand and headroom in new and existing markets.

• Opex to AUM target of 2.5% and cost to income closer to 30% over five years.

• Co-lending business targeted to reach 10% of disbursements in the near future.