Star Housing Finance Limited Reports Robust Performance For Period Ending March 31, 2024
PNN
Mumbai (Maharashtra) [India], May 9: Star Housing Finance Limited (Star HFL), a BSE-listed company (BSE Scrip code BOM: 539017) has maintained its growth trajectory in the retail home finance space and has resultantly reported robust business and financial performance for the fiscal year ending on March 31, 2024.
During the period Star HFL registered milestones across business areas for the full year ending Mar 31, 2024, enlisted as below:
Business Numbers: AUM increased 73.52% y-o-y to Rs. 426.86 crs. The Company disbursed Rs. 240.86 crs in the financial year.
Income Growth: Interest income grew by 66.82% y-o-y on the back of strong traction in disbursements during the year. Net Interest Margin (NIM) stands at 7.86%
Asset Quality Remains Intact: PAR (0+ days past due) stood at 3.22%, of which GNPA stands at 1.50% and NNPA stands at 1.02% as of March 31, 2024
Robust Profitability: Profit Before Tax registered 43.10% y-o-y growth
Network Expansion: Star HFL has expanded to the North with a presence in NCR and is now present across its operational geographies with 24 physical offices and 9 digital PoPs. Star HFL has 250+ housing finance professionals across geographies and business functions
Liability Scale Up: During the year, Star HFL has raised incremental liability of Rs. 224.42 crs from 4 banks and 8 FIs including refinance lines from the NHB. Star HFL has strong relationships with Banks and FIs and has a robust pipeline to aid the loan book growth. During the year, Star HFL has been able to diversify the liability program in terms of instruments and has issued NCDs subscribed by FIs
Equity Infusion: Capitalization level further strengthened through the successful issuance of warrants amounting to Rs. 60 crs subscribed by Family Office, HNI investors and retail investors. 25% of the total warrant amount has been received
Strong Capital Levels: Net-worth as of Mar 31, 2024, stands at Rs. 133.01 crs. Leverage levels remain modest at 2.41x
AUM Growth Approach: Star HFL initiated a new co-lending partnership with Tata Housing Finance Ltd, targeting assistance to 5,000 potential homebuyers in its initial operational phase
Rating Upgrade: During the last financial year Star HFL received a rating upgrade from CARE and is now rated as BBB/Stable by both rating partners viz: India Ratings and Care.
Operating & Financial Performance (In Lakhs) FY'2023-24 FY'2022-23 Y-o-Y Change
Assets Under Management 42686.17 24599.89 73.52%
PBT 1147.12 801.63 43.10%
PAT 88.33 697.99 27.27%
Borrowing Outstanding 32029.93 16249.80 97.11%
Leverage(x) 2.41x 1.53x
ROE (%) 7.42% 8.19%
ROA (%) 2.29% 3.18%
GNPA (%) 1.50% 1.68%
NNPA (%) 1.02% 1.25%
Speaking on the performance for the period, Kalpesh Dave CEO of Star HFL said, "Star HFL has been able to report another year of robust growth as evinced by business, operating and financial numbers. The leadership team along with 250+ housing finance professionals spread across geographies are committed to carry this momentum ahead. The focus will continue to strengthen capitalization levels from time to time, build a strong and diversified liability pipeline, expand the branch network and create a quality loan book. We look to build operating and financial leverage from hereon with an objective to have strong return ratios over the next 8-12 quarters. We once again reaffirm the precedence of quality over growth and would work towards creating long-term value for all our stakeholders."
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 the 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 subsidies for its qualified customers under the CLSS scheme. Star HFL has its Registered & Corporate Office in Mumbai, Maharashtra.
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