Star Housing Finance Limited Carries Forward The Growth Momentum Into FY’ 2023-24

Business

Reports Q1 Results: 134% y-o-y Increase In AUM, 99% y-o-y Increase In Income, 122% y-o-y Increase In PAT, Appoints CEO And COO To Drive Innovation And Growth

Mumbai (Maharashtra) [India], July 18: Star Housing Finance Limited (Star HFL), a BSE listed (BSE Scrip code BOM: 539017), professionally run rural focused retail home finance company has continued its growth journey in FY’2023-24 which is reflected in the financial results for the first quarter ending June 30, 2023

During the quarter, Star HFL has reported strong traction in business backed by a liability franchise that continues to compliment the asset growth. The asset quality parameters have also improved during the quarter as the existing book gets seasoned and new book gets build up.

The overall performance has given credence to look forward to achieve the yearly business and operational milestones set by the Company at the beginning of the financial year

Performance Highlights:

AUM and Top Line Numbers: AUM as of June 30, 2023 increased 134% y-o-y to Rs. 271.62 crs. Total income grew 99% y-o-y for the quarter. The Company disbursed Rs.34.67 crs during the quarter registering y-o-y growth of 26%

Bottom line Growth: PBT and PAT registered 121% and 122% y-o-y growth respectively during the quarter

Leadership Team Strengthened: With an objective to strengthen the senior management, Star HFL board has recently appointed senior professionals within the Company Mr. Kalpesh Dave as CEO and Mr. Anoop Saxena as COO. These professionals, along with MD Mr. Ashish Jain and CFO Mr. Natesh Narayanan are now leading Star HFL’s growth phase

ESOP II scheme introduced: Star HFL board has approved the ESOP II scheme for eligible employees. The scheme, subject to shareholders’ approval and related clearances is in continuance with the philosophy of Star HFL being employee owned and managed company through its journey

Liability Compliments Growth: Star HFL continues to develop strong funding pipeline through engagement with Banks, Financial Institutions, Social impact fund and the NHB

Credit Rating Revised: Taking into account the business growth and asset quality displayed in the last financial year, India Ratings has upgraded Star HFL’s bank loan facilities to IND BBB/Stable

Asset Quality Continues to Improve: As of June 30, 2023,PAR (0+ days past due) has reduced to 4.82%, of which GNPA as of June 30, 2023 stands at 1.56%. NNPA as of June 30, 2023 stands at 1.13%.

Speaking on the performance 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.”

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 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 has its Registered & Corporate Office in Mumbai, Maharashtra.

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