HomeFirst Finance Company India Ltd reported a 43% increase in its net profit for the third quarter of fiscal year 2025, driven by robust growth in assets under management (AUM) and improved asset quality. The housing finance company's net profit rose to INR 73 crore in the October-December quarter, compared to INR 51 crore in the same period last year.
Strong AUM Growth
The company's AUM grew by 34% year-on-year to INR 8,293 crore, supported by higher disbursements and a healthy loan portfolio. Disbursements for the quarter stood at INR 1,321 crore, up 28% from INR 1,032 crore in the corresponding quarter of the previous fiscal year. The growth was broad-based across its product segments, including home loans, loan against property, and affordable housing.
Asset Quality Improves
Asset quality metrics showed significant improvement, with gross non-performing assets (GNPA) declining to 1.02% as of December 2024 from 1.28% a year ago. Net NPAs also improved to 0.70% from 0.92% in the same period. The company attributed the improvement to better collection efficiency and a focus on high-quality borrowers.
Net interest income (NII) rose by 30% to INR 155 crore, while net interest margin (NIM) remained stable at 4.5%. The company's total income increased by 28% to INR 226 crore, driven by higher interest income and fee-based income.
Management Commentary
Managing Director and CEO Manoj Viswanathan said, "We are pleased with our performance this quarter, which reflects the strength of our business model and the trust of our customers. Our focus on technology-driven underwriting and customer service has helped us achieve strong growth while maintaining asset quality." He added that the company aims to sustain this momentum by expanding its presence in existing and new markets.
Outlook
HomeFirst Finance remains optimistic about the housing finance sector, supported by favorable government policies and rising demand for affordable housing. The company plans to leverage its digital platform to enhance customer experience and operational efficiency. It also expects to maintain AUM growth in the range of 25-30% for the full fiscal year.
The results were announced after market hours on January 22, 2025. Shares of HomeFirst Finance closed at INR 1,020 on the BSE, up 0.5% from the previous close.
