Star Housing Finance Limited has demonstrated an impressive and robust performance within the retail home finance sector for the fiscal year concluding on March 31, 2024. The company has reported a noteworthy 74% year-on-year increase in Assets Under Management (AUM), a 66% year-on-year increase in income, and a 43% year-on-year increase in Profit Before Tax (PBT).
Throughout the year, Star HFL achieved several significant milestones. The company’s AUM experienced a substantial 73.52% year-on-year increase, reaching Rs. 426.86 crores. Moreover, it disbursed Rs. 240.86 crores during the financial year.
Additionally, the company’s interest income grew by 66.82% year-on-year, driven by strong disbursements. The Net Interest Margin (NIM) stood at 7.86%, reflecting a solid performance in this aspect.
In terms of asset quality, Star HFL maintained its integrity with a PAR (0+ days past due) at 3.22%. The Gross Non-Performing Assets (GNPA) stood at 1.50%, and the Net Non-Performing Assets (NNPA) at 1.02% as of March 31, 2024.
The company also demonstrated strong profitability, with a 43.10% year-on-year growth in Profit Before Tax. Furthermore, Star HFL expanded its network to the North, establishing a presence in the National Capital Region (NCR) and currently operates across various geographies with 24 physical offices and 9 digital Points of Presence (PoPs).
Throughout the year, Star HFL successfully raised an incremental liability of Rs. 224.42 crores, solidifying its relationships with 4 banks and 8 Financial Institutions (FIs), including refinance lines from the National Housing Bank (NHB). The company also saw strengthened capitalization levels through the issuance of warrants amounting to Rs. 60 crores, subscribed by Family Offices, High Net Worth Individuals (HNI) investors, and retail investors.
As of March 31, 2024, Star HFL’s net worth stands at Rs. 133.01 crores, with modest leverage levels at 2.41x. The company’s concerted efforts in aiding the growth of the loan book were reflected through a new co-lending partnership with Tata Housing Finance Ltd, with a targeted assistance to 5,000 potential homebuyers in its initial phase of operation.
Additionally, Star HFL obtained a rating upgrade from credit rating agencies CARE, and is now rated as BBB/Stable by both India Ratings and CARE. Kalpesh Dave, CEO of Star HFL, expressed his satisfaction with the company’s performance, affirming their commitment to maintaining growth momentum and creating long-term value for stakeholders.
Star Housing Finance Limited, a BSE-listed rural-focused housing finance company, has been operating in the low-cost housing finance segment since 2009. The company provides long-term housing finance assistance to Economically Weaker Sections (EWS) and Low-Income Groups (LIG) for the purchase/construction of low-cost housing units in its operational geographies.
With a presence across multiple states, Star HFL is registered as a Primary Lending Institution (PLI) under the Pradhan Mantri Awas Yojana (PMAY) and has received subsidies for its eligible customers under the Credit Linked Subsidy Scheme (CLSS). The company’s Registered & Corporate Office is located in Mumbai, Maharashtra.
It is evident that Star Housing Finance Limited has truly accomplished a remarkable year of growth and resilience, solidifying its position in the housing finance sector while remaining committed to its mission of providing affordable housing finance to underserved communities.