Star Housing Finance Limited (Star HFL), a rural focused home finance company, recorded an impressive growth rate of 100%+ during its first operational year in 2022-2023. The Board of Directors approved the audited full year financial results and revealed a growth of 136.33% in the company’s gross loan book.
The company employed a strong underwriting and risk framework to increase the quality retail low ticket home loan book. During this period, the percentage of PAR (0+ dpd) decreased from 27.2% in the year ending March 31, 2022 to 5.06% in the year ending March 31, 2023.
The AUM built across various states was driven by 14 branches with a digital PoPs and staff count of 150+ employees. The company raised capital from several reputed professionals from capital markets and BFSI space, which saw participation from individual investors, institutional entities, a family office and an FPI. All of this has helped Star HFL to raise its net worth to Rs 106.42 crs, thus expanding the shareholders to 6500.
Star HFL has relationship with public sector banks, private sector banks, financial institutions and the National Housing Bank. FY’2022-23 saw the company receive its first term loan from a social impact fund, and its total borrowings outstanding as of March 31, 2023 amounted to Rs 162.5 crs.
The entire year also saw a growth of 92.32% in total income. Moreover, it had a set-aside funds for personnel expenses, capacity creation and operational geographies, which amounted to a 51% jump in total operating expenses. Profit before tax (PBT) witnessed a major jump of 507%, while profit after tax (PAT) grew by 1021%.
The company had an Employee Stock Option Scheme I (ESOP I) in place to ensure eligible employee participation as owners of the company. The outlook of the company was upgraded to ‘positive’ in the fourth quarter of FY’2022-23. Moreover, Star HFL was supported by a strong and independent board, comprising of reputed professionals from BFSI space.
The company’s success was driven by the leadership of Ashish Jain, MD of Star HFL. He established that FY’2022-23 would be the year on which the company would embark on its growth journey and he has proved his words by exceeding a 100% growth rate in all the key business areas. Jain is confident that rural India housing story is set to unfold in the coming years, and that companies like Star HFL are ideal candidates to capitalise on it. He enthused that the team looked forward to an exciting journey ahead.
