Zee Business Managing Editor Anil Singhvi spoke to Home First Finance CEO Manoj Viswanathan today on the third quarterly results and more. Viswanathan said that AUM of the company has grown 16% (yoy), spreads are also increasing and credit cost is also under control. He said that almost all the metrics of the organisation are on a good path. 

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Viswanathan said as far as the profit for Q3 FY21 is concerned, Home First Finance did a direct assignment transaction last year in Q3 FY20 to improve liquidity and for better usage of capital. Hence in Q3 FY21 net income from Direct Assignment transaction is not visible. This is the key reason why, when compared yoy, net income is Q3 FY21 is looking lesser when compared to Q3 FY20.

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Viswanathan said that the first half of FY21 was not good and the business activities started to resume from Q3 FY21. In Q3, m-o-m wise comparisons indicate that November was better than October and December was better than November. The December month business was higher than last December (yoy). In Q4 FY21, January month business has been higher than last January (yoy). He believes that the covid situation is out of way and the growth path for the company is set for the next few quarters.

Viswanathan said net interest margins have improved as cost of borrowing has come down. Due to the strong presence in markets and their USPs Home First Finance is able to regain their lending rates. This is the main reason why their spreads have improved. The spreads have been in the range of 4.5% to 5% for the past 3 to 4 years.

Viswanathan said that the demand that is seen in Affordable Housing is because of migration. People are coming from smaller towns to larger cities. Big Cities like Surat, Ahmedabad, Mumbai and Pune are seeing people migrating from smaller towns. Most of the Industries are returning to normalcy after Covid fear, he believes this trend may continue going forward as well