Star Housing Finance Q1 Results: PAT Up 95% YoY; AUM Reached Rs. 471.41 cr

As a result of maintaining its development trajectory in the retail home finance market, Star Housing Finance Limited (Star HFL), a BSE listed company with a semi-urban and rural focus, has reported good commercial and financial performance for the quarter that ended on June 30, 2024. According to the corporation, its AUM rose 73.55% year over year to Rs. 471.41 crs. Rs. 61.23 crs were disbursed by the Company during the quarter under review. Strong growth in disbursements drove a y-o-y jump in interest income of 61.43%. The current Net Interest Margin (NIM) is 7.04%. The company reported a net profit of Rs 3.02 Cr in Q1FY25 up by 94.83% YoY from Rs 1.55 Cr in Q1FY24.

As of June 30, 2024, PAR was 3.38%, of which GNPA was 1.57% and NNPA was 1.12%. Profit before tax increased by 87-98% year over year. Net worth is Rs. 137.77 crores as of June 30, 2024. At 2.43x, leverage levels are still low. To help the loan book grow, Star HFL has solid ties with banks and financial institutions.

According to the corporation, its net worth is Rs. 137.77 crores as of June 30, 2024. At 2.43x, leverage levels are still low. For the purpose of processing house loan applications from beginning to end and providing assistance for receivable management, Star HFL has finished deploying its core lending suite. CARE and India Ratings presently have Star HFL-rated BBB / Stable.

As per a regulatory filing, 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.

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."

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."

A BSE-listed rural housing finance firm, Star Housing Finance Limited (Star HFL) focuses on home finances. Since 2009, the company has been involved in the financing of affordable homes. In its operational regions, Star HFL offers low-income families (EWS/LIG families) long-term housing finance help for the acquisition or building of affordable housing units. Star HFL is a professionally run company operating in Tamil Nadu, Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, and the National Capital Region. Star HFL is registered under the Pradhan Mantri Awas Yojana (PMAY) as a Primary Lending Institution (PLI) and has been granted a subsidy under the CLSS program for its eligible clients. Maharashtra's Mumbai serves as the home base for Star HFL.