India Business Journal - Star HFL’s PBT and PAT almost double for Q1 of FY25; AUM surges by 74%

CORPORATE

Star HFL’s PBT and PAT almost double for Q1 of FY25; AUM surges by 74%

IBJ Bureau
Jul 27, 2024

Star Housing Finance (Star HFL), a BSE-listed company focused on semi-urban and rural home finance, has reported strong business and financial numbers for the quarter ended June 30, 2024, according to a media release by the home finance company.

During the period, Star HFL’s assets under management (AUM) increased by 73.55 per cent y-o-y to Rs 471.41 crore. The company disbursed Rs 61.23 crore in the quarter under review.

Interest income grew by 61.43 per cent y-o-y on the back of strong traction in disbursements, with net interest margin at 7.04 per cent. The company’s gross and net NPAs were 1.57 and 1.12 per cent respectively.

Star HFL’s profit before tax (PBT) grew by 87.98 per cent to Rs 3.91 crore, while its profit after tax (PAT) surged by 94.83 per cent to Rs 3.02 crore.

Star HFL has strong relationships with banks and financial institutions (FIs) to aid its loan book growth. The company’s current borrowings stand at Rs 335.35 crore through six banks and 11 FIs.

The home finance company’s net worth was Rs 137.77 crore as of June 30, 2024, with leverage level remaining modest at 2.43 times, the media release adds.

Speaking on the performance for the period, Star HFL CEO Kalpesh Dave said: “Star HFL continues to scale up with focus on asset quality. We are now at the threshold of crossing the Rs 500-crore AUM milestone and are well poised to take the next leap of Rs 1,000-crore AUM over the next few quarters. The branch network is now diversified across 34 locations with staff strength of over 280 employees, which is set to expand to over 50 locations in existing and newer geographies.”