Star Housing Finance Rally 3% As PAT Jump 122% In Q1 On Strong Asset Quality

The financial results for the first quarter ended June 30, 2023 have been released by Star Housing Finance Limited (Star HFL). AUM reached Rs. 271.62 Cr as of June 30, 2023, up 134% YoY from Rs 116.32 Cr in Q1FY23. The quarterly income grew by 99% YoY. The company disbursed Rs. 34.67 crore during the quarter, which is a rise of 26% YoY.

The PAR dropped to 4.82% as of June 30, 2023, while the GNPA is now 1.56% compared to 2.75% in the year-ago quarter. NNPA as of June 30, 2023 stands at 1.13% compared to 2.21% in Q1 FY 2022-23, said Star HFL.

CEO Mr. Kalpesh Dave said, "We have been able to start the financial year on a positive note across operational areas. 150+ member team is geared up to continue 100%+ y-o-y growth momentum that was exhibited in FY'2022-23. We are happy to have received rating upgrade which will further bolster our liability franchise. We continue to establish physical presence in our areas of operations enabling the branch network to build business traction and AUM growth. Our asset quality parameters continue to improve and this shall always take precedence in our day to day operations. I feel we are well poised to achieve Rs. 500 crs AUM milestone over the next few quarters."

Speaking on the performance of the Company, Mr. Ashish Jain, MD of Star HFL said, "Star HFL is at an inflection point and we have structured our growth backed by solid risk framework. The day to day operations are driven by defined policies, processes and guidelines. Finally, we are governed by a strong and independent board. We as a team are confident to achieve our business and operation milestones. Exciting times are ahead for us and we look forward to exhibit quality growth in this phase of our journey."
The company said its disbursements reached Rs 34.67 Cr in Q1FY24 compared to Rs 27.51 Cr in Q1FY23, up by 26.03% YoY.

The net profit of Star HFL stood at Rs 1.55 Cr in Q1FY24 up by 122.31% YoY from Rs 0.70 Cr posted in the same quarter of FY23. Its net income stood at Rs 12.29 Cr in the quarter ended June 2023 compared to Rs 12.49 Cr posted in the same quarter of FY23.
The Board has made a "Recommendation of Dividend of Rs. 0.05 per equity share of Rs. 5/- each for the Financial Year 2022- 2023 subject to the approval of the Members at the ensuing Annual General Meeting of the Company," said Star HFL in a stock exchange filing.

On Monday, the shares of Star Housing Finance opened on the BSE at Rs 59.65 apiece. The stock made a 52-week-high of Rs 67.95 on (13/07/2023) and a 52-week-low of Rs 36.25 on (01/09/2022).