The Financial and Operational Performance of the Company for the quarter ended December 31, 2024
“We are delighted to report another quarter of strong performance. Our AUM grew to Rs. 11,949 Cr, reflecting a robust y-o-y growth of 32.6% and q-o-q growth of 6.4%. PAT increased by 23.5% on a y-o-y basis to Rs. 97 Cr leading to RoA of 3.4%. We achieved an ROE of 16.6% in Q3FY25; in a high-interest rate environment. The continued improvement in our return on equity reflects our focus on sustainable growth, operational efficiency and strong credit quality. Our strong liability profile and timely availability of competitive cost of borrowing enabled us to contain the cost of borrowing. We further expanded our network, adding 7 branches and 8 touch points, taking our total branch count to 149 and touchpoints to 359. Employee strength has grown from 1,249 in Mar’24 to 1,704 in Dec’24 with the objective of driving further expansion.
To enable further support of the vision of the company and achieve our medium-term ambition of AUM of Rs. 20,000 Cr by Mar’27, the Board has also passed an enabling resolution to raise equity capital into the company of upto Rs. 1,250 Cr. This reflects a strong confidence in our ability to drive our growth plans and gain market share in the affordable housing finance segment.
Our asset quality continues to be strong with a focus on early delinquencies.
* 1+ DPD is at 4.8% (increase of 30 bps on q-o-q).
* 30+ DPD at 3.1% (increase of 30 bps on q-o-q).
* Gross Stage 3 (GNPA) is at 1.7% (flat on q-o-q). Prior to RBI classification circular of Nov’21, it stands at 1.4%.
* Our credit cost at 30bps (remained flat on y-o-y and increased by 10 bps on q-o-q basis). We continue to maintain our conservative credit cost guidance of 30 to 40 bps.
Technology remains central to our strategy. Digital adoption continues to be strong and a key area of our focus as we grow. Account aggregator adoption has improved to 61% amongst new approvals. Digital fulfillment has reached~80% with the use of digital agreements and E-NACH mandates. 96% of our customers are registered on our app as on Dec’24 and 88% of Service requests being raised on the app.
To further our commitment to the vision of "Housing for All," we are proud to share our partnership with MoHUA and NHB to spearhead the ISS vertical of the PMAY initiative. As part of this collaboration, we have successfully conducted initial pilot projects in our regions. At HomeFirst, we remain steadfast in our dedication to making this initiative a resounding success.
Our S&P Global ESG Score has improved significantly from 34 in FY23 to 45 in FY24, reflecting our unwavering dedication to environmental, social, and governance excellence. This remarkable progress underscores our commitment to sustainable business practices, fostering a positive impact on the environment, empowering communities, and maintaining the highest standards of governance.
We are excited about the opportunities ahead, especially with the continued push for affordable housing under government initiatives like PMAY-U 2.0. We remain committed to our mission of providing fast, transparent and efficient home finance solutions to the aspiring middle class.”
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