Star HFL announces Q1 results, registers 474 per cent increase in YoY PAT; gears up to expand presence towards AUM growth

The Board of Directors of Star Housing Finance Limited (Star HFL) have announced Q1 FY’2022-23 financial results for the period ending on June 30, 2022.

Star HFL, a rural-focused housing finance company announces Q1 results. Registers 474% increase in y-o-y pat (profit after tax). Gears up to expand presence towards AUM growth.

The Board of Directors of Star Housing Finance Limited (Star HFL) has announced Q1 FY’2022-23 financial results for the period ending on June 30, 2022.

Operational Highlights:

Highest Quarterly Disbursement: Q1 FY2022-23 disbursements stand at Rs. 22.56 crores (highest quarterly disbursement to date). Expansion across operational geographies in the form of physical offices with induction of employees across functions and locations to enable growth. Looking forward to growing the AUM with a CAGR of 100% and a significant increase in the market cap of the company.

Business strengthened through Co-Lending: Star HFL has operationalized co-lending tie-ups with Capital India Home Loans and Singularity Credit Pvt Ltd resulting in AUM growth across its centers. AUM stands at Rs. 116.32 crores with an annualized growth of 23% in Q1 FY2022-23. Discussion with select banks and financial institutions for co[1]lending tie-up is underway.

Strengthening of Debt Profile: Star HFL has strong relationships with public sector banks (SBI, BoB, UBI, and IOB) and has received credit lines from the NHB. A strong funding pipeline from private sector banks, public sector banks, and financial institutions was developed to cater to the growth aspirations.

Continued Strengthening of Net Worth: Star HFL continues strengthening its net worth. Post capital raise in Nov 2021, the company now has got board approval to raise fresh capital through preferential allotment on a private placement basis. This capital is to be infused post shareholder’s approval in the ensuing AGM on July 16, 2022, and other approvals.

Enabled Employee Ownership: ESOP I scheme for eligible employees to get vested from Aug 5, 2022, thereby enabling ownership and accountability. ESOP II scheme to be announced soon post getting necessary approvals from the board.

Shifted Base to Mumbai: Now headquartered in the financial hub of the country, Mumbai. The registered office shifted to Mumbai post receiving all clearances. Star HFL now engages with all stakeholders including bankers, rating agencies, business associates, and vendors from its Mumbai headquarters. The presence in Udaipur is now a new commercial premise considering the business requirements and growth planned in the South Rajasthan region.

Speaking on the performance of the Company, Mr. Ashish Jain, MD of Star HFL said, “Star HFL is now set to grow. This is validated by our business performance in Q1 FY2022-23 and the same getting translated in terms so financial numbers. We are happy to have registered action in terms of traction across locations, progress on funding, both debt, and equity. We are continuing to invest in creating capacity including location expansion, manpower on-boarding, and digitization. We look forward to build-up and sustaining the momentum of Q1 into the remaining quarters. We see our capacity getting utilized to the fullest through FY’2022-23. We look forward to expanding across our business areas from hereon. We shall invest in technology to develop one-click digital lending capabilities. We shall continue to strengthen our funding machinery through debt/equity and make the Company ready for institutional equity from domestic/international market.”

Speaking on the performance Natesh Narayanan, CFO of Star HFL said, “Our fundraising efforts continue to get strengthened as we now engage with private sector banks, public sector banks, and financial institutions and have developed a strong funding pipeline for the year ahead to complement the planned AUM growth. Strengthening of the net-worth subject to shareholder’s an approval / other approvals would further poise the company well in its efforts to get re-rated by the stakeholders.”

About Star Housing Finance Limited (Star HFL) Star Housing Finance Limited (Star HFL) is BSE listed housing finance company. The Company has been operational in the affordable 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 the 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 subsidies for its qualified customers under the CLSS scheme. Star HFL has its Registered & Corporate Office in Mumbai, Maharashtra