Repco Home Finance reports 43.53% YoY Q1 FY24 net profit growth to Rs 89.09 crore. Total consolidated income stands at Rs 366.50 crore, a 19.38% increase from last year. Loan sanction is at Rs 726 crore, and disbursement is at Rs 684 crore. The loan spread remains at 3.3%, yielding a 15.8% return on equity. Gross NPAs at Rs 695 crore and net NPAs at Rs 338 crore, with a gross NPA ratio of 5.5%. Operational revenue grows 21% YoY to Rs 364.5 crore. Repco has a network of 159 branches and 34 satellite centres in India. Shares show strong YTD and 1-year returns.
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Repco Home Finance has witnessed an impressive surge of 43.53% in its consolidated net profit for the quarter ending June 30, 2023. The company's profit after tax reached Rs 89.09 crore in Q1 FY24, surpassing the Rs 62.07 crore of the same quarter in the previous fiscal year, as stated in an official filing with the BSE. During this period, the company's total consolidated income rose to Rs 366.50 crore, marking a growth of 19.38% compared to the Rs 307 crore recorded in the analogous quarter of the prior year.
The dynamics of loan sanction have been notable, standing at an impressive Rs 726 crore for Q1 FY24, with loan disbursement amounting to Rs 684 crore. A consistent loan spread of 3.3% has been maintained, resulting in a return on assets of 2.8% and a commendable return on equity of 15.8%. These figures represent a remarkable surge from the earlier figures of 2.1% and 12.2%, respectively. By the end of June 2023, the cumulative loan book had amounted to a substantial Rs 12,655.4 crore. This breakdown showcases loans for the non-salaried segment, constituting 51.8% of the outstanding loan book, while loans for the salaried segment account for the remaining 48.2%. A notable 76.9% of these loans are designated for housing purposes, with the remaining 23.1% attributed to outstanding home equity products.
Addressing asset quality, the gross non-performing assets (NPAs) have reached Rs 695 crore by June 30, 2023, significantly influencing a return on equity of 15.8%. Net NPAs account for Rs 338 crore of the loan assets. The metrics reveal a gross NPA ratio of about 5.5% and a net NPA ratio of about 2.8% in relation to the loan assets. Impressively, the capital adequacy ratio remains at an admirable 36.1%. Operational revenue, showcasing a commendable YoY growth of 21%, has reached a noteworthy Rs 364.5 crore. The loan sanction figure, rising by 5% to Rs 726 crore, coupled with a 7% increase in loan disbursements to Rs 684 crore, reflects a robust performance.
As of June 2023, the company's extensive network spans across 159 branches and 34 satellite centres throughout India. Additionally, the establishment of two asset recovery branches underscores the company's commitment to expanding its operational scope. Commenting on this achievement, analysts at Motilal Oswal, a prominent domestic brokerage firm, have indicated their eagerness to gain insights from the company's management regarding potential enhancements in asset quality and their expectations on credit costs for FY24.
A snapshot of the stakeholders' structure for the quarter concluding in June 2023 portrays the company's promoter holding at 37.13%, mutual funds at 17.69%, foreign portfolio investors (FPIs) at 13.41%, and resident individuals at 22.59%, among other contributors. Remarkably, Repco Home Finance's shares have experienced an exceptional year-to-date surge of 56%, while the return over a span of one year stands at an impressive 131%.
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