Earnings Impact: Home First Finance shares soar around 11% on strong Q1 results

Shares of Home First Finance Company surged nearly 11 percent in intra-day trading on Friday following the release of robust earnings for the first quarter of fiscal year 2025 (Q1FY25). The company's profit saw a 27 percent year-on-year increase, reaching ₹88 crores compared to ₹69 crores in the same quarter last year. Additionally, total income for the quarter rose by 31.4 percent to ₹341 crores, up from ₹260 crores year-on-year.

The stock peaked at ₹1140.05 during the day's trading, a 10.7 percent rise, and is now just 4.5 percent below its record high of ₹1,195.00, achieved on July 1, 2024. It has risen 54 percent from its 52-week low of ₹777.00 on June 4, 2024. Over the past year, the stock has gained 22.5 percent and has increased over 28 percent year-to-date in 2024.

The company's non-performing assets (NPAs) remained steady at 1.7 percent, unchanged from the previous quarter, and are expected to remain at similar levels. Home First Finance's assets under management (AUM) grew by 35 percent year-on-year to ₹10,478 crores in the Juen quarter, with loan disbursements rising by 30 percent to ₹1,163 crores. Housing loans constitute 86 percent of its portfolio, with an average ticket size of ₹11.6 lakh.

However, the return on assets (RoA) declined by 30 basis points to 3.6 percent in Q1FY25 from 3.9 percent last year. Pre-provision operating profit (PPOP) increased by 21.9 percent year-on-year to ₹119 crores.

Manoj Viswanathan, Managing Director at Home First Finance, expressed pride in surpassing the ₹10,000 crore AUM milestone. He attributed this achievement to the company's differentiated business model, technology-driven solutions, high productivity standards, diversified funding, and rigorous risk management practices. The company has expanded its presence to four new districts, totaling coverage in 135 districts, and plans to open 20-25 new branches in the current financial year.

Viswanathan is optimistic about maintaining growth momentum, driven by a strong economic environment, a rising middle-class population, an expanding distribution network, and a differentiated business model. He emphasized the company's commitment to responsible lending, strong governance, compliance, and prudent risk management while aiming to build Home First Finance as a preferred brand in the affordable housing finance industry.