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Pleased to share with you Q2 FY24 result of HomeFirst Finance.

HomeFirst’s QoQ disbursal momentum continues (36.6% y-o-y, 7.1% q-o-q); witnessed broad based growth across markets
Strong financial results with ROE of 15.6% (+60bps q-o-q); with industry leading home loan mix of 87%.
AUM at Rs ~84bn (33.3% y-o-y, 7.6% on q-o-q). Asset quality remains strong.

Q2FY24 Financial Performance:

Total Income at Rs 278 Crs; y-o-y growth of 46.8%.
PPOP stands at Rs 104 Crs, growth of 40.9% on y-o-y basis.
PAT at Rs 74 Crs, up by 36.9% from Rs 54 Crs in Q2FY23.
ROA at 3.8% stable on y-o-y basis.
ROE at 15.6% increased by 60bps on q-o-q and 250bps on y-o-y basis.

Commenting on the performance Mr. Manoj Viswanathan, MD & CEO said,
“Q2FY24 performance has been strong across all operating and financial parameters. We have delivered an ROE of 15.6% in an inflationary and peak interest rate environment. This level of consistent and superior returns is a testimony to our strong risk management, use of right technology and scalability of our model. We continue to build distribution by simultaneously entering new markets and deepening our presence in existing markets. We added 7 branches in Q2 and now have 120 physical branches. Including potential & digital branches, we now do business across 295 touchpoints across Tier 1 to Tier 3 markets in 13 states / UT.

Disbursement in Q2 at Rs 959 Cr was higher than Q1, with a growth of 36.6% on y-o-y basis and 7.1% on q-o-q basis, leading to an AUM growth of 33.3% on y-o-y basis to Rs 8,365 Cr. Spreads at 5.5% remain ahead of our guided levels of 5.25%. PAT at Rs. 74 Cr was up 36.9% y-o-y and 7.5% q-o-q. ROA is range bound at 3.8%.

Our asset quality continue to be strong with a focus on early delinquencies

* 1+ DPD is at 4.5% (Q1FY24 - 4.3%, Q2FY23 - 4.7%).
* 30+ DPD is flat at 2.9% in Q2; decline of 40 bps on y-o-y basis.
* Gross Stage 3 (GNPA) is at at 1.7% (Q1FY24 - 1.6%, Q2FY23 - 1.9%). Prior to RBI classification circular of Nov’21, it stands at 1.1% up 10 bps from Q1FY24.
* Our credit cost is at 40bps for the quarter.

Digital adoption continues to be strong and a key area of our focus as we grow. 94% of our customers are registered on our app as on Sep’23. Unique User Logins was 54% in Q2FY24. Service requests raised on app was stable at 90%.

We continue to stay focused on providing loans for affordable housing, led by distribution and use of technology, backed by diversified funding and strong risk management. We believe that given the tailwinds of the housing sector supported by overall economic growth momentum and strong execution mindset of the company we will continue to deliver excellent results while staying true to our mission of being the “Fastest Provider of Home Finance for the Aspiring Middle Class, delivered with Ease and Transparency.“

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