Shares of Home First Finance surged over 7 percent to hit a high of Rs 525 on Tuesday after the company on Monday reported a profit after tax of Rs 31 crore for the quarter ended March 2021.

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Home First Finance shares increased as much as 7.3 percent to Rs 524.45 apiece intraday on BSE. On the National Stock Exchange (NSE), the mortgage lender's shares rose to as much as Rs 525 apiece, up 7.4 percent.

At 12:45 pm, Home First Finance shares traded 6.03 percent higher at Rs 518.15 apiece on the BSE. The benchmark Sensex index was 0.28 percent up at that time.

Market breadth was positive, with 1,773 stocks trading higher on the BSE against 1,018 moving lower. On the NSE, 1,227 shares advanced while 604 declined.

Home First Finance had posted a profit after tax of Rs 12 crore in the year-ago period. For FY21, the mortgage lender's net profit grew 26 percent to Rs 100 crore as against Rs 80 crore in FY20.

"The fourth quarter was excellent for us. Our disbursement was good. Asset quality has been stable and we have done nil restructuring," its Managing Director and CEO Manoj Viswanathan was quoted as saying in the PTI report.

Disbursements grew 30.4 percent to Rs 452 crore during the quarter from Rs 347 crore in the same quarter last year. Viswanathan said the southern markets contribute to more than 30 percent of the total disbursals.

Collection efficiency improved to 98.5 percent in March 2021 from 97.6 percent in December 2020. Gross stage 3 assets were at 1.8 percent and net stage 3 at 1.2 percent. Expected credit losses (ECL) provision as on March 2021 was Rs 46 crore, resulting in a total provision to loans outstanding ratio of 1.4 percent, as per PTI report.

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First Published:May 4, 2021 1:01 PM IST