Home First India (HOMEFIRST) Q4 21/22 earnings summary

Executive summary

• FY22 closed with AUM of ₹5,380 Cr, up 29.9% YoY, and record annual disbursements of ₹2,031 Cr, up 85.2%; Q4 disbursements reached a record ₹641 Cr.

• Growth rebounded after COVID wave 2 disrupted Q1; collections improved through the year and adjusted PAT rose 73.8% to ₹174.08 Cr.

• Strategy centers on calibrated expansion, technology-led efficiency, prudent underwriting and diversified funding, targeting sustainable profitable growth.

Financial highlights

• Total income increased 21.8% to ₹595.70 Cr; net interest income rose 38.3% to ₹262.23 Cr and net total income grew 39.7% to ₹380.89 Cr.

• PBT rose 68.8% to ₹226.30 Cr; reported PAT increased 85.8% to ₹186.10 Cr, while adjusted PAT, excluding the positive ₹12.01 Cr one-time tax adjustment, rose 73.8% to ₹174.08 Cr.

• Basic EPS was ₹21.26 versus ₹12.37; FY22 disbursements grew 25.5% versus FY20, the pre-COVID year.

• Interest income on loans was ₹477.04 Cr, net gain on direct assignment ₹67.83 Cr and non-interest income ₹50.82 Cr; operating expenses were ₹129.57 Cr.

Outlook and guidance

• Plans call for presence in 400 cities within 24–36 months, focused on Gujarat, Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana; these markets represent ~70% of affordable housing business.

• Target cost-to-income of 30% within 3 years and ROE of 15–16% within 2–3 years, while sustaining current return on assets and pricing power.

• Management expects delinquency buckets to approach pre-COVID levels in FY23; technology investment is intended to automate processes, raise productivity and lower costs.