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Shares of Housing Finance Company Repco Home Finance Ltd. gained as much as 6% on Wednesday, November 13, in reaction to the company's September quarter results, which were reported after market hours on Tuesday. Net profit for the period increased from last year, while asset quality improved on a sequential basis.
Repco Home Finance Ltd on Tuesday (November 12) reported a 14.4% year-on-year (YoY) increase in net profit at ₹108.7 crore for the second quarter that ended September 30, 2024.
In the corresponding quarter of the previous fiscal, Repco Home Finance posted a net profit of ₹95 crore, the company said in a regulatory filing.
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, was up 1.7%, coming at ₹175.7 crore against ₹172.7 crore in the corresponding quarter of FY24.
In monetary terms, gross NPA stood at ₹552 crore against ₹583 crore quarter-on-quarter, whereas net NPA came at ₹217 crore against ₹223 crore quarter-on-quarter.
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Repco Home Finance's loan sanctions reached ₹926 crore, an 8% increase from ₹860 crore in Q2 FY24. Loan disbursements also grew by 9%, standing at ₹867 crore compared to ₹797 crore in the previous year.
Total income for the quarter rose by 11.5%, amounting to ₹428 crore, up from ₹384 crore in Q2 FY24. Net interest income increased marginally from ₹173 crore to ₹176 crore, while net profits grew by 15%, reaching ₹113 crore from ₹98 crore.
The company maintained a healthy loan spread of 3.4%, with a return on assets at 3.3% and a return on equity at 16%, compared to 3.1% and 16.1%, respectively, in Q2 FY24. Compared to Q1 FY25, loan sanctions rose by 27%, from ₹727 crore to ₹926 crore, and loan disbursements grew by 28%, from ₹680 crore to ₹867 crore.
Total income also showed a significant increase, growing by 28%, from ₹416 crore to ₹428 crore. Net profits for the quarter increased by 7%, from ₹105 crore to ₹113 crore. The loan spread remained steady at 3.4%, and the return on assets and equity was 3.3% and 16.0%, respectively, compared to 3.1% and 16.3% in Q1 FY25.
Shares of Repco Home Finance are up 4.6% at ₹483.1. The stock is up 18% so far in 2024, after having corrected by 18% from its recent peak of ₹595.
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As of September 30, 2024, the company’s loan book stood at ₹13,964 crore, an 8.1% increase from ₹12,922 crore a year ago. Housing loans made up 74% of the loan book, while home equity products accounted for 26%.
Non-salaried loans represented 52% of the outstanding loan book, while salaried loans made up the remaining 48%. The company’s capital adequacy ratio stood at 33.98%, well above the regulatory minimum of 15%.
The results came after the close of the market hours. Shares of Repco Home Finance Ltd ended at ₹461.00, down by ₹12.50, or 2.64% on the BSE.
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