Home First Finance Soars: Q1 Net Profit Jumps 35.5% Amidst Strong Loan Growth
Home First Finance Reports Impressive Q1 Results, Driven by Affordable Housing Demand
Mumbai, India – Home First Finance Company (Home First), a leading affordable housing finance provider, has announced a remarkable performance for the first quarter of fiscal year 2024-25. The company reported a significant 35.5% year-on-year (YoY) increase in its net profit, reaching ₹118.8 crore compared to ₹87.7 crore in the corresponding quarter last year. This impressive growth underscores the rising demand for affordable housing and Home First’s ability to capitalise on this trend.
Key Highlights of Q1 Performance
- Net Profit Surge: A substantial 35.5% YoY increase in net profit, demonstrating strong operational efficiency and profitability.
- Net Interest Income (NII) Growth: NII climbed by 33% to ₹187.9 crore, reflecting robust loan disbursement and a healthy net interest margin.
- Loan Growth: The company witnessed a healthy growth in loan portfolio, further fueling the increase in NII. While specific loan disbursement figures weren't detailed in the initial release, the overall financial performance points to a positive trajectory.
- Asset Quality Remains Strong: Home First continues to maintain a prudent approach to risk management, with a focus on asset quality. Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) figures are expected to remain stable, showcasing the company’s disciplined lending practices. (Further details will be available in the full financial report.)
Driving Factors Behind the Success
Several factors contributed to Home First’s exceptional Q1 results. The ongoing government initiatives promoting affordable housing, coupled with the increasing urbanisation and rising income levels in Tier 2 and Tier 3 cities, have created a favourable environment for affordable housing finance companies. Home First’s targeted approach to this segment, coupled with its efficient operations and strong customer relationships, has enabled it to outperform the market.
Looking Ahead
Home First Finance remains optimistic about the future prospects of the affordable housing sector in India. The company plans to continue expanding its reach, leveraging technology to enhance customer experience, and maintaining a strong focus on asset quality. Investors will be keenly watching for further details in the full financial report, including specific loan growth figures and asset quality metrics. The company’s strong Q1 performance sets a positive tone for the rest of the fiscal year.
Disclaimer: This report is based on the initial press release and may be subject to change upon the release of the full financial report.
