Star Housing Finance Limited Announces Strong Results Through March 31, 2024

May 9, Mumbai (Maharashtra) [India]: Maintaining its development trajectory in the retail home loan industry, Star Housing loan Limited (Star HFL), a BSE-listed company (BSE Scrip code BOM: 539017), has announced strong commercial and financial performance for the fiscal year ended on March 31, 2024.

For the entire year ending March 31, 2024, Star HFL recorded the following accomplishments across all business areas:

Business Numbers: AUM reached Rs. 426.86 crore, up 73.52% year over year. In the fiscal year, the company disbursed Rs. 240.86 crore.

Income Growth: Due to a robust year-over-year increase in disbursements, interest income increased by 66.82%. The current Net Interest Margin (NIM) is 7.86%.

Asset Quality Is Unaffected: As of March 31, 2024, PAR (0+ days past due) was 3.22%, with GNPA and NNPA at 1.50% and 1.02%, respectively.

Sturdy Profitability: Pre-tax profit increased by 43.10% annually

Network Expansion: Star HFL presently has 24 physical offices and 9 digital Points of Presence (PoPs) spread across its operating regions, including a presence in the National Capital Region (NCR). More than 250 housing finance experts from various business divisions and geographic areas work at Star HFL.

liabilities Scale Up: Star HFL has increased its liabilities by Rs. 224.42 crore from 4 banks, 8 FIs, and the NHB via refinancing lines throughout the course of the year. Star HFL has a solid pipeline to support the expansion of the loan book and solid ties with banks and financial institutions. Star HFL has issued NCDs that have been subscribed to by FIs and has been able to diversify the liabilities program in terms of instruments throughout the year.

Equity Infusion: The successful offering of warrants totaling Rs. 60 crore, subscribed by family offices, high-net-worth individuals, and retail investors, significantly bolstered the capitalization level. A quarter of the warrant’s entire price has been paid.

robust levels of capital. Net worth is Rs. 133.01 crores as of March 31, 2024. At 2.41x, leverage levels are still low.

AUM Growth Approach: In its first operating phase, Star HFL aimed to help 5,000 prospective homeowners via a new co-lending collaboration with Tata Housing Finance Ltd.

Rating Upgrade: Star HFL is now rated as BBB/Stable by both rating partners, India Ratings and Care, after receiving a rating upgrade from CARE during the most recent fiscal year.

Financial and Operational Performance (In Lakhs) Fiscal Year 2023–2024 FY’2022-23 Year-over-Year Change

Resources Managed: 24599.89, 242686.17, 73.52%

1147.12, 801.63, 43.10% PBT

27.27% PAT 88.33 697.99

Outstanding Borrowing: 16249.80, 1632029.93 97.11%

Leverage(x) = 1.53 x 2.41 x

ROE (%) 7.42% 8.19%

ROA (%) 2.29 3.18%

1.50 % 1.50% 1.68% GNPA

NNPA (%): 1.02 percent

Speaking about the results during the time frame, Star HFL CEO Kalpesh Dave said, “Business, operating, and financial numbers demonstrate that Star HFL has been able to report another year of robust growth.” The leadership group is dedicated to maintaining this momentum, as are the more than 250 housing finance experts dispersed across different regions. The emphasis will remain on periodically bolstering capitalization levels, developing a robust and diverse liability pipeline, growing the branch network, and producing a high-caliber loan book. From this point on, we want to increase both our operational and financial leverage with the goal of achieving high return ratios over the following eight to twelve quarters. We repeat that quality comes before growth and that we would endeavor to create value over the long run for all of our stakeholders.”

A BSE-listed rural housing finance firm, Star Housing Finance Limited (Star HFL), focuses on financing homes. Since 2009, the company has been involved in the financing of affordable homes. In its operating regions, Star HFL offers low-income families (EWS/LIG families) long-term housing financing help for the purchase or building of affordable dwellings. 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 subsidies under the CLSS program for its eligible clients. Mumbai, Maharashtra, is home to Star HFL’s corporate and registered offices.