Star Housing Finance Ltd gave strong momentum with growth of 2x in PAT QoQ in FY 24-25

During the period Star HFL registered milestones across business areas for the quarter ending June 30, 2024 enlisted as below:

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Business Numbers: AUM increased 73.55 % y-o-y to Rs. 471.41 crs. The Company disbursed Rs. 61.23 crs in the quarter under review.

Income Growth: Interest income grew by 61.43 % y-o-y on the back of strong traction in disbursements. Net Interest Margin (NIM) stands at 7.04 %

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Asset Quality Remains Intact: PAR (0+ days past due) stood at 3.38 %, of which GNPA stands at 1.57 % and NNPA stands at 1.12 % as of June 30, 2024

Robust Profitability: Profit before Tax registered 87.98 % y-o-y growth

Liability Scale Up: Star HFL has strong relationships with Banks and FIs to aid the loan book growth. Current borrowings stand at Rs. 335.35 crs through 6 Banks and 11 FIs. The liability pipeline is robust and is planned as per the business plan for the financial year

Strong Capital Levels: Net-worth as of Jun 30, 2024 stands at Rs. 137.77 crs. Leverage levels remain modest at 2.43x

ESOP II Approval: Continuing with the philosophy of employee ownership, Star HFL board has approved the ESOP II scheme for eligible employees. This is the second scheme implemented by the Company considering the expanded employee base and the contribution made by eligible employees to the growth of the Company

Dividend payout: Star HFL has announced a 50% increase in dividend payout from 5p to now 7.5p, per share, subject to shareholder approval in the ensuing AGM

Lending Suite Upgraded: Star HFL has completed deployment of core lending suite for end-to-end processing of home loan applications along with receivable management support

Ratings: Star HFL is currently rated BBB / Stable by CARE and India Ratings.

Operating and Financial Performance

Speaking on the performance for the period, Mr. Kalpesh Dave CEO of Star HFL said, “Star HFL continues to scale up with focus on asset quality. We are now at the threshold on crossing Rs. 500 crs AUM milestone and are well poised to take thes next leap of Rs. 1000 crs AUM over the next few quarters. The branch network is now diversified with multi-space across 34 locations with a staff strength of 280+ employees and targets to expand to over 50 locations in existing and newer geographies. We shall continue to invest in branch expansion through the year, keeping target of Rs. 50 crs steady state monthly disbursals to be achieved over the next few quarters. The technology has been augmented to complement the planned scale up. We shall continue to strengthen capitalization levels of the company in-line with growth requirements and subject to all necessary approvals and compliances.”

Speaking about the prospects of retail housing finance, Mr. Kalpesh Dave said, “The relaunch of PMAY through PMAY-Urban 2.0 that entails allocation of Rs. 10 lakh crs with a focus to financially assist in construction of 3 crore additional houses, bodes well for first time home buyers and strengthens the tailwinds in the sector. Star HFL is well poised to leverage the benefits that may accrue post implementation of the scheme. The scale up in its existing and planned new geographies should get bolstered with this thrust of the Government and Star HFL remains fully focused to evolve as a meaningful player in low ticket retail housing finance place over the next 2-3 years”

About Star Housing Finance Limited (Star HFL)

Star Housing Finance Limited (Star HFL) is BSE listed rural focused housing finance company. The Company has been operational in the low-cost housing finance space since 2009. Star HFL provides long term housing finance assistance to EWS/LIG families towards purchase/construction of low-cost housing units (affordable housing) in its operational geographies. Star HFL is a professionally managed Company with a presence across states of Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, NCR and Tamil Nadu. Star HFL is registered as a Primary Lending Institution (PLI) under the Pradhan Mantri Awas Yojana (PMAY) and has received subsidy for its qualified customers under CLSS scheme. Star HFL is headquartered in Mumbai, Maharashtra.

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