Repco Home Finance declines after Q2 PAT skids 20% YoY

Repco Home Finance fell 1.87% to Rs 241.55 after consolidated net profit dropped 19.7% to Rs 80.80 crore on 4.4% increase in total income to Rs 350.22 crore in Q2 September 2020 over Q2 September 2019.

On a consolidated basis, profit before tax (PBT) jumped 6.2% to Rs 108.31 crore in Q2 September 2020 as against Rs 101.96 crore in Q2 September 2019. Current tax expense for the quarter jumped 58.9% to Rs 23.79 crore as against Rs 14.97 crore in Q2 September 2019. The Q2 result was declared post trading hours on Friday, 13 November 2020.

The overall loan book grew 5% to Rs 12,089.20 crore at the end of September 2020. Loans to the self-employed segment accounted for 51.7% of the outstanding loan book and loans against property product accounted for 18.9% of the same. Stage 3 assets stood at 3.95% of the loan assets as at the end of September 2020 as compared to 4.22% as at the end of September 2019.

As required under IND-AS, the company has carried provisions for expected credit losses to the tune of Rs 243.20 crore or 2% on total loan assets. Stage 3 coverage ratio stood at 41% at the end of September 2020 as compared to 28% in the previous year. The capital adequacy ratio stood provisionally at 26.8% comprising entirely of Tier-1 capital. The minimum capital adequacy ratio prescribed by the National Housing Bank is 12%.

During the quarter, net interest income (NII) stood at Rs 139.60 crore while margin was at 4.6%. Loans sanctions stood at Rs 527.70 crore, loan disbursements stood at Rs 467.20 crore, interest spread expanded to 3.4% and return on assets and equity expanded to 2.7% and 18.3% respectively.

Repco Home Finance is a professionally managed housing finance company head quartered in Chennai, Tamil Nadu. It is registered as a housing finance company with the National Housing Bank (NHB).

As on 20 September 2020, Repco Home Finance 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.

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