Any current/future new fundraising through debt or equity?

The company has a sanctioned INR 250 crores line from NHB, which was drawn down in April 2024 to help manage borrowing costs. They aim to secure a significant NHB funding line in FY25 to maintain cost of borrowing and support growth. No immediate equity fundraising mentioned. Promoters (True North and Aether Mauritius) plan a gradual exit, likely selling about 10% of their holding annually through blocks, providing some predictability to the market. The company is comfortable with increasing leverage up to 5x debt-to-equity or asset-to-equity of 6x, giving 2-2.5 years runway for expansion. Fun

Any current/future capex/capital investment/strategic investment?

No explicit mention of current or future capex or strategic capital investments in the provided excerpts. Branch expansion is ongoing with a target of 20 to 25 branches and about 60 to 70 touchpoints per year. Focused on expanding presence in emerging affordable housing markets like UP, MP, and Rajasthan. Employee additions are mostly freshers hired in batches, indicating ongoing investment in human resources. Plans to scale co-lending business up to 10% of disbursements, which may imply some operational investments. Capital adequacy and leverage plans: Targeting debt-to-equity of 5x and asset

Future growth expectations in sales/revenue/volumes?

Targeting overall AUM growth of 30% annually. LAP (Loan Against Property) segment expected to grow slightly faster than housing loans, contributing to overall growth. Branch expansion planned at 20-25 branches per year, plus 60-70 additional touchpoints, focusing on emerging affordable markets like UP, MP, and Rajasthan. Intent to gradually increase the share of newer states (UP, MP, Rajasthan) to around 10% of overall portfolio each in 3-4 years, reducing concentration in Gujarat, Maharashtra, and Karnataka. Average ticket size anticipated to rise gradually due to higher incomes and a

Future growth expectations in earnings/operating earnings/profits/EPS?

Targeting approximately 30% AUM growth overall, with slightly higher growth in LAP segment (Page 21-22). ROA expected around 3.4% to 3.6% for next year, supported by spreads of 5%-5.25%, NIM of around 5.3%-5.5%, and credit cost ~30 bps (Page 9). Maintain a 16%+ ROE with financial leverage increasing to about 5x by Q4 FY25 (Page 15). Operating expenses expected to normalize around 3% of AUM, post recent cleanup of excess provisions (Page 7). Credit cost guidance around 30 bps going forward, with prudent provisioning (Page 16). Focus remains on steady growth with strong risk management

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Home First Finance Company India LtdQ1 FY24Finance

Home First Finance Company India Ltd Q1 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,154P/E: 20.8Market Cap: ₹11.2K CrSector: Finance

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Targeting overall AUM growth of 30% annually.
→LAP (Loan Against Property) segment expected to grow slightly faster than housing loans, contributing to overall growth.
→Branch expansion planned at 20-25 branches per year, plus 60-70 additional touchpoints, focusing on emerging affordable markets like UP, MP, and Rajasthan.
→Intent to gradually increase the share of newer states (UP, MP, Rajasthan) to around 10% of overall portfolio each in 3-4 years, reducing concentration in Gujarat, Maharashtra, and Karnataka.
→Average ticket size anticipated to rise gradually due to higher incomes and aspirations, especially in newer states.
→Origination yield targeted around 13.5% with some quarter-to-quarter fluctuations.
→Continued geographic diversification with scale-up in newer markets while maintaining strong presence in established states.
→Focused on stable spreads (5%-5.25%) and maintaining robust asset quality for sustainable growth.

Margin guidance

Category 3

→Targeting approximately 30% AUM growth overall, with slightly higher growth in LAP segment (Page 21-22).
→ROA expected around 3.4% to 3.6% for next year, supported by spreads of 5%-5.25%, NIM of around 5.3%-5.5%, and credit cost ~30 bps (Page 9).
→Maintain a 16%+ ROE with financial leverage increasing to about 5x by Q4 FY25 (Page 15).
→Operating expenses expected to normalize around 3% of AUM, post recent cleanup of excess provisions (Page 7).
→Credit cost guidance around 30 bps going forward, with prudent provisioning (Page 16).
→Focus remains on steady growth with strong risk management; ticket size and incomes expected to grow 10-15% annually supporting earnings (Page 15).
→Loan origination yields targeted at 13.5%, with some quarterly fluctuation, supporting margin stability (Page 7).

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Fundraise plans

Yes

→The company has a sanctioned INR 250 crores line from NHB, which was drawn down in April 2024 to help manage borrowing costs.
→They aim to secure a significant NHB funding line in FY25 to maintain cost of borrowing and support growth.
→No immediate equity fundraising mentioned.
→Promoters (True North and Aether Mauritius) plan a gradual exit, likely selling about 10% of their holding annually through blocks, providing some predictability to the market.
→The company is comfortable with increasing leverage up to 5x debt-to-equity or asset-to-equity of 6x, giving 2-2.5 years runway for expansion.
→Fundraising is structured to support a 30% AUM growth target and gradual increase in LAP share to 20% by March 2027.

Order book

The provided transcript and document pages do not mention any details related to the company's current or expected order book or pending orders. The content primarily focuses on financial metrics, loan origination, disbursement strategies, cost of borrowing, branch expansion, collection efficiencies, write-offs, and other operational details of Home First Finance Company India Limited. There is no information on order book or pending orders available in the provided text.

Capex plans

Yes

→No explicit mention of current or future capex or strategic capital investments in the provided excerpts.
→Branch expansion is ongoing with a target of 20 to 25 branches and about 60 to 70 touchpoints per year.
→Focused on expanding presence in emerging affordable housing markets like UP, MP, and Rajasthan.
→Employee additions are mostly freshers hired in batches, indicating ongoing investment in human resources.
→Plans to scale co-lending business up to 10% of disbursements, which may imply some operational investments.
→Capital adequacy and leverage plans: Targeting debt-to-equity of 5x and asset-to-equity of 6x for the next 2-2.5 years, ensuring runway for expansion.
→No specific details on fixed asset capex or large strategic capital outlays provided.

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