Repco Home Finance reports 34% sequential jump in profits

Repco Home Finance Limited announced financial results prepared as per Indian Accounting Standards (IND AS) for the quarter ended June 30, 2020. Company's performance remained resilient even as economic activities came to a standstill owing to a nation-wide lockdown.

Performance in Q1FY21 Vs Q1FY20

- Total income grew 4% to Rs. 341.9 crs.
- Net interest income stood at Rs. 128.0 Crs and margins at 4.3%.
- Net profits stood at Rs. 64.0 crs.
- Loans sanctions stood at Rs. 161.5 crs
- Loan disbursements stood at Rs. 181.6 crs
- Interest spread remained healthy at 3.0% respectively.
- Return on assets and equity remained robust at 2.2% and 15.0% respectively.

Loan Book and composition

The overall loan book rose 6% to Rs. 11,979.5 crs at the end of June 2020. Loans to the selfemployed segment accounted for 51.7% of the outstanding loan book and loans against property product accounted for 18.7% of the same.

Asset Quality

Stage 3 assets stood at 4.0% of the loan assets as at the end of June 2020 as compared to 4.2% as at the end of June 2019.

Provision for Expected Credit Losses

As required under IND AS, the company has carried provisions for expected credit losses to the tune of Rs. 236.1 crs or 2.0% on total loan assets.

Stage 3 coverage ratio stood at 41% at the end of June 2020 as compared to 31% in the previous year.

Capital Adequacy

The capital adequacy ratio stood provisionally at 26.2% comprising entirely of Tier-1 capital. The minimum capital adequacy ratio prescribed by the National Housing Bank is 12.0%.

Distribution network

As on June 20, 2020, the Company had a total network of 153 branches and 24 satellite centers spread across Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Kerala, Maharashtra, Odisha, Gujarat, West Bengal, Madhya Pradesh, Jharkhand, Rajasthan and the Union Territory of Puducherry.

Shares of REPCO HOME FINANCE LTD. was last trading in BSE at Rs.173 as compared to the previous close of Rs. 170.5. The total number of shares traded during the day was 15940 in over 550 trades.

The stock hit an intraday high of Rs. 175 and intraday low of 163. The net turnover during the day was Rs. 2734126.