Homefirst Finance, a key player in affordable housing finance, reported robust financials for the December quarter with a notable 34.2% surge in net income, reaching Rs 79 crore. The increase was driven by heightened loan sales, leading to a substantial 29% expansion in quarterly disbursement to Rs 1,007 crore. The total loan book saw a robust 33.5% increase, reaching Rs 9,014 crore. Despite a 40-basis point decline in net interest margin, the CEO, Manoj Viswanathan, emphasized the company's resilience. The gross non-performing assets (NPA) declined to 1.7%, showcasing the company's strong performance amidst regulatory impacts.
Homefirst Finance, an important player in the affordable housing finance sector, disclosed impressive financial results for the December quarter, showcasing a notable 34.2% surge in net income, reaching Rs 79 crore. Heightened loan sales and an overall uptick in total income propelled this commendable growth. The company, headquartered in Mumbai, articulated that its quarterly disbursement witnessed a substantial expansion of over 29%, totaling Rs 1,007 crore. Consequently, the total loan book experienced a robust increase of 33.5%, amounting to Rs 9,014 crore, during the December quarter.
In a statement, Manoj Viswanathan, the Chief Executive Officer of Homefirst Finance, highlighted the company's resilience in achieving higher profits despite encountering a 40-basis point decline in net interest margin, settling at 5.3%. The company's gross non-performing assets (NPA) demonstrated a favorable trajectory, receding to 1.7% of the total advances in the latest December quarter. This reflected a decline of 10 basis points compared to the corresponding period in the previous year.
Viswanathan pointed out that, except for the regulatory impact of the Reserve Bank of India's circular issued in November 2023, mandating a 25-percentage point increase in the risk weight capital requirement on banks' lending to non-banking financial companies (NBFCs), the gross NPA would have stood at 1.1%. This regulatory circular played a role in influencing the figures, showcasing the intricacies of the regulatory landscape. Speaking on the company's performance, Viswanathan expressed satisfaction with the growth momentum in Q3 FY24. The financial indicators were robust across various operational and financial parameters.
The profit after tax (PAT) recorded an impressive 34.2% YoY growth and a solid 6.1% QoQ growth, resulting in a commendable return on equity (ROE) of 15.8%. This achievement stands out, especially considering the challenges posed by the prevalent high-interest-rate environment. Viswanathan emphasized the company's strategic approach to continuing to expand its footprint. Homefirst Finance has added 3 branches in the third quarter, bringing the total count to 123 physical branches. Notably, the company operates across 305 touchpoints, strategically positioned in Tier 1 to Tier 5 markets, spanning 13 states and union territories in India.
To sum up, Homefirst Finance's outstanding financial results for the quarter ending in December are in line with its strategic goals. The company's ability to navigate challenges, capitalize on growth opportunities, and maintain a strong financial position underscores its resilience in the competitive landscape. The results speak to Homefirst Finance's commitment to its mission of being the 'Fastest Provider of Home Finance for the Aspiring Middle Class, Delivered with Ease and Transparency.'
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