Hero-Fincorp, the NBFC of the Hero Group has yesterday published its Half-yearly results to the National Stock Exchange. It is India's most trusted brand that offers 2-wheeler loans, Loan Against Property, corporate & SME loans, and Home loans. Results Analysis: Hero-FinCorp has shown revenue of 1960 Crores in the first half of FY21 as compared to 1683 Crores in the same period last year. This shows a growth of 17%. The PAT saw a dip of 42 Crores in the first half of FY21 mainly due to higher impairment allowance on loans. This figure has increased from 223 Crores last year to 600 Crores this year. This is mainly occurring due to problems in the sector of the economies to which Hero-FinCorp has given loans. The company has clocked an EPS of Rs.10 in the first half of FY21. The book value as of 30.09.2020 stands at 380 per share. The total loan book as of 30.09.2020 stands at 21266 Crores. And the company has cash of 2307 Crores on its book. Expenses such as Employee Benefits and Other expenses have come down in the first half of FY21 as compared to last year may be due to retrenchment of employees and cost-saving initiative done by many companies to counter the impact of COVID-19. Key Parameters: 1. D/E = 4.26 slightly better than as it was 4.50 in the month of March 2020. 2. Secured NCDs, Unsecured sub-ordinated Tier-II non-convertible debentures, and Long-term facilities of the Hero-FinCorp have AA+/Stable rating from ICRA and CRISIL. This shows the company has no problem in terms of liquidity and solvency parameters are concerned. UnlistedZone View: The overall results are good. The company despite the problem in the economy due to COVID-19 has able to grow its revenue by 16%, which is a good sign. The profitability dips due to loan impairment to be done to incorporate the impact of loss in business due to bad loans. However, we are in the view that the exact picture of NPAs and the impact of COVID-19 would be visible in the next quarter results as NBFCs are not showing loans that might become NPA as up to 31.08.2020 there was a moratorium period. After 31.08.2020, if the borrowers do not give interest or principal due to loss in their business, then these will become SMA1, SMA2, and then NPAs. So all these NPAs will be shown in next quarter's results. 6MFY21 Results