Repco Home Finance Limited (RHFL) has reported its highest-ever quarterly disbursements of Rs. 1,069.00 crores in Q2, marking a significant milestone in the company's 25-year history. The company, celebrating its silver jubilee, has shown robust growth and outlined ambitious targets for the future.

Key Highlights

• Record disbursements of Rs. 1,069.00 crores in Q2, up from Rs. 867.00 crores in the same quarter last year
• Loan book grew by 8% to Rs. 15,033.00 crores
• Net profit reported at Rs. 107.00 crores
• Return on Assets (ROA) at 2.9% and Return on Equity (ROE) at 13.5%
• Targeting Rs. 16,200.00 crores Assets Under Management (AUM) by year-end

Financial Performance

RHFL's performance in Q2 demonstrates strong growth momentum. The company's loan book expanded to Rs. 15,033.00 crores, reflecting an 8% increase year-over-year. The net profit for the quarter stood at Rs. 107.00 crores, with ROA at 2.9% and ROE at 13.5%.

Disbursement and Sanctions

The company's disbursements saw a significant jump, reaching Rs. 1,069.00 crores in Q2, compared to Rs. 867.00 crores in the same quarter last year. Sanctions also increased to Rs. 1,206.00 crores, up from Rs. 926.00 crores in the corresponding period.

Asset Quality

RHFL reported Gross Non-Performing Assets (GNPA) of Rs. 475.00 crores as of September, representing 3.16% of the loan book. The company aims to reduce this to Rs. 450.00 crores in Q3. The Net NPA stood at Rs. 225.00 crores, or 1.50% of the loan book.

Business Outlook

The management expressed confidence in achieving their target of Rs. 16,200.00 crores AUM by the end of the year. They plan to open 10-15 new branches this financial year, focusing on expansion in western India, Karnataka, and Tamil Nadu.

Funding and Cost of Funds

RHFL is actively working on reducing its cost of funds. About Rs. 6,000.00 crores of bank borrowings are scheduled for re-pricing over the next three months, which is expected to lead to a further reduction in the overall cost of funds by 10-15 basis points.

Management Commentary

T. Karunakaran, Managing Director & CEO, stated, "We are progressing on our business parameters and are positive about meeting our guideline numbers. The structural changes processed across the organization are yielding results."

M. Raja, Chief Business Officer, added, "We have aggressive growth plans on both disbursement and AUM. We are also looking at going ahead with some book purchases, which is in the early stages."

Conclusion

Repco Home Finance's record-breaking performance in Q2 showcases the company's strong growth trajectory. With strategic expansion plans, focus on asset quality improvement, and efforts to optimize funding costs, RHFL appears well-positioned to achieve its ambitious targets for the year.

Repco Home Finance Limited (RHFL) has released its financial results for the second quarter, revealing a mixed performance with revenue growth and a slight decline in profit.

Revenue Growth and Profit Decline

For Q2, RHFL reported a total income of ₹446.00 crore, marking a 4.2% increase from ₹428.00 crore in the same period last year. However, the company's net profit decreased to ₹106.90 crore, down from ₹112.50 crore in the previous year's Q2, representing a 5% year-over-year decline.

Loan Book and Asset Quality

The company's overall loan book stood at ₹15,033.00 crore as of September 30, showing a 7.7% growth from ₹13,964.00 crore a year ago. RHFL's asset quality showed improvement, with the Gross Non-Performing Assets (GNPA) ratio decreasing to 3.16% from 3.96% in the previous year. The Net NPA ratio also improved slightly to 1.50% from 1.59% year-over-year.

Business Performance

RHFL demonstrated strong growth in loan sanctions and disbursements:

• Loan sanctions increased by 30.2% to ₹1,206.00 crore, up from ₹926.00 crore in the same quarter last year.
• Loan disbursements grew by 23.3% to ₹1,069.00 crore, compared to ₹867.00 crore in the same period last year.

Financial Metrics

The company maintained healthy financial ratios:

• Net Interest Income (NII) grew by 7.5% to ₹201.00 crore from ₹187.00 crore in the previous year's Q2.
• The loan spread remained stable at 3.4%.
• Return on Assets (ROA) stood at 2.9%, while Return on Equity (ROE) was 13.5%, compared to 3.3% and 16.0% respectively in the same quarter last year.

Loan Portfolio Composition

As of September 30:

Capital Adequacy and Distribution Network

RHFL maintained a strong capital position with a capital adequacy ratio of 36.88%, well above the regulatory minimum of 15%. The company's distribution network expanded to 203 branches and 31 satellite centers across 12 states and one Union Territory.

Mr. T. Karunakaran, Managing Director and CEO of Repco Home Finance Limited, commented on the results, highlighting the company's growth in loan sanctions and disbursements, as well as the improvement in asset quality.

While Repco Home Finance has shown resilience in its loan book growth and asset quality improvement, the slight decline in profitability may warrant attention from investors and stakeholders in the coming quarters.