Q1 2025 Star Housing Finance Ltd Earnings Call Transcript
Key Points
- Star Housing Finance Ltd (BOM:539017) reported a significant year-on-year growth of 74% in assets under management (AUM), reaching INR471.41 crores.
- The company achieved a 76.61% year-on-year increase in disbursements, totaling INR61.23 crores for the quarter.
- Total income for Q1 FY25 rose by 70.54% year-on-year, reaching INR20.96 crores.
- Profit after tax for the period ending June 30, 2024, increased by 94.83% year-on-year.
- The company has a robust liability pipeline and strong relationships with banks and financial institutions, aiding its loan book growth.
- The portfolio at risk stands at 3.38% for accounts that are plus zero days past due, indicating some level of credit risk.
- Gross non-performing assets (GNPA) and net non-performing assets (NNPA) ratios are at 1.57% and 1.12% respectively, which, while managed, still represent potential risk.
- The company faces challenges in maintaining high asset quality as it scales up its operations.
- There is a potential dilution of return on equity (ROE) due to regular capital infusions.
- The company is exposed to fluctuations in borrowing costs, which have increased from around 9.75% to 11.50%, impacting the bottom line.
Ladies and gentlemen, good afternoon and a warm welcome to all participants to the quarterly update call of Star Housing Finance Limited. Star Housing Finance Limited has organized this call with an intent to share updates and discuss operational as well as financial highlights of the company for the period ending June 30, 2024.
On the call, we have the senior management comprising Mr. Kalpesh Dave, Chief Executive Officer; Mr. Natesh Narayanan, Chief Financial Officer; and Mr. Anoop Saxena, Chief Operating Officer of the company. Before we proceed with this call, I would now like to take this opportunity to remind everyone about the disclaimer related to this conference call.
Today's discussion may be forward-looking in nature based on management's current beliefs and expectations. It must be viewed in conjunction with the risks that our business faces that could cause our future results, performance or achievements to differ significantly from what may be expressed or implied by such forward-looking statements. (Operator Instructions) Please note that this conference is being recorded.
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