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Home First Finance Company India witnessed a commendable surge of 34.89 percent in its net consolidated profit during the quarter ended June 30, 2023. The company's profit after tax soared to Rs 69.12 crore in Q1 FY24, demonstrating substantial growth compared to the Rs 51.24 crore recorded in the corresponding quarter of the previous fiscal year. Such a remarkable performance, as stated in a BSE filing, portrays the company's steadfast commitment to excellence and financial prowess. Remarkably, the Company's net consolidated total income in Q1 FY24 surged to Rs 259.80 crore, exhibiting an impressive growth rate of 53.42 percent compared to the previous year's Rs 169.34 crore.
The organization's strong revenue growth stands as a testament to its exceptional business acumen and ability to navigate ever-changing market dynamics with finesse. MD and CEO, Manoj Viswanathan, remarked on the company's resilient response to challenges, affirming that despite prevailing rate hikes and an elevated interest rate environment, we managed to maintain a strong liability profile. Timely access to low-cost funding from NHB played a pivotal role in containing borrowing costs, thus reinforcing the organization's financial stability. During Q1 FY24, the Company's disbursement showcased a remarkable increase, reaching an impressive Rs 895 crore. This reflects a substantial YoY growth rate of 35.4 percent, underscoring the company's success in seizing emerging opportunities within the market.
In parallel, the asset under management (AUM) demonstrated a robust rise to Rs 7,776 crore, boasting a commendable YoY growth rate of 33.3 percent. Beyond financial achievements, the organization prides itself on maintaining stringent credit risk management practices, resulting in a strong provision coverage ratio (PCR). ECL provision as of June 2023 stood at Rs 62 crore, yielding a total provision to loans outstanding ratio of 0.9 percent. The GNPA total PCR reached an impressive 57.1 percent in June 2023, a notable improvement from 45.8 percent in June 2022. Leveraging its financial expertise, the Company managed to secure a substantial increase in total borrowings, including debt securities, which reached Rs 5,626 crore as of June 2023, up from Rs 3,780 crore in June 2022.
This proactive approach to capital allocation underscores the organization's commitment to prudent financial management and capital optimization. As of June 2023, the company maintained substantial liquidity of Rs 2,092 crore. The cost of borrowings in Q1 FY24 was 8 percent, experiencing a slight increase of 10 basis points from Q4 FY23's 7.9 percent. Additionally, the spread on loans for Q1 FY24 was 5.7 percent, exhibiting a 20-basis point increase over Q4 FY23. These financial metrics showcase the company's prudence and agility in navigating the market's dynamics.
In conclusion, Home First Finance Company India's remarkable performance during Q1 FY24 exemplifies its unwavering dedication to driving growth, maximizing value for stakeholders, and strengthening its position as a leading financial institution. With a clear focus on excellence and strategic growth initiatives, the company is poised for continued success in the dynamic financial landscape.
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