Home First India (HOMEFIRST) Q4 20/21 earnings summary

Executive summary

• FY21 PAT reached a record ₹100.14 Cr, up 25.9% YoY, while AUM grew 14.4% to ₹4,141 Cr despite pandemic disruption.

• Collection efficiency recovered from 78.4% in Jun’20 to 98.5% in Mar’21; Q4 disbursements reached a record ₹452 Cr.

• Growth priorities include technology-led efficiency, higher existing-branch productivity, contiguous expansion, diversified funding and stronger risk management.

Financial highlights

• Total income was ₹489.17 Cr, up 16.6% YoY; net interest income rose 23.0% to ₹186.02 Cr and net total income rose 19.3% to ₹272.59 Cr.

• Profit before tax increased 24.9% to ₹134.04 Cr; PAT rose 25.9% to ₹100.14 Cr. Basic EPS was ₹12.37 and diluted EPS ₹12.18.

• Interest income on term loans rose 17.5% to ₹402.60 Cr; net gain on direct assignment increased 18.4% to ₹43.94 Cr.

• Operating expenses edged up 1.7% to ₹106.40 Cr; credit cost increased 94.8% to ₹32.15 Cr.

Outlook and guidance

• Priorities are to invest further in technology and mobility, automate branch activities, expand into contiguous affordable-housing markets and diversify borrowings to lower funding costs.

• Management expects sustainable growth supported by quality-focused expansion and a diversified financing base; it also cited potential home demand growth in Tier 2 and 3 towns as work-from-anywhere expands.

• Pandemic effects, including the second wave, remain uncertain; liquidity and capital strength remain focus areas while economic and collection conditions evolve.