HFFC: Recent debutant rallies 6.5% as Q4 profit surges 151%

HFFC: Shares of Home First Finance Company (HFFC) jumped up to 65 percent in the early trade on Tuesday. While after the recent debutant of Dalal street reported a 151 percent surge in March quarter profit.

Moreover, the affordable housing finance player on Monday reported a profit after tax of Rs. 31 crores for the quarter against Rs. 12 crores posted for the year-ago period. 

The company disbursed Rs. 452 crore loans during the quarter, 30.4 percent more than Rs. 347 crore reported for the same quarter last year. For FY2020-21, the lender’s net profit grew 25 percent to Rs. 100 crore from Rs. 80 crore a year ago. On Tuesday, the scrip surged up to 6.46 percent to Rs. 520.35 on BSE. Even as benchmark Sensex traded marginally higher at 48,783. HFFC shares had closed at Rs. 488.75 on Monday.

While the fourth-quarter numbers were excellent for us. Our disbursement was good. Asset quality has been stable and we have done nil restructuring, Managing Director and CEO Manoj Viswanathan said. The lender reported an improvement in collection efficiency to 98.5 percent in the March quarter from 97.6 percent in the December quarter.

On the other side, disbursements grew 30.4 percent to Rs. 452 crore during the quarter from Rs. 347 crore in the same quarter last year. Viswanathan said the southern markets contribute to more than 30 percent of the total disbursals. Collection efficiency improved to 98.5 percent in March 2021 from 97.6 percent in December 2020. Gross stage 3 assets were at 1.8 percent and net stage 3 at 1.2 percent. The expected credit losses (ECL) provision as of March 2021 was Rs. 46 crore.

Asset under management (AUM) grew by 14.4 percent to Rs. 4,141 crore. The Home First Finance stock debut on the bourses in February 2021 at Rs. 619.80, a 19.46 percent premium to the IPO price. The scrip was hovering around its issue price of Rs. 518 ever since.