Repco Home Finance nears 52-week low post Q3 results

Repco Home Finance has slipped 8% to Rs 556 in intra-day trade, trading close to its 52-week low of Rs 552 on the BSE, after the company reported 4% year-on-year (YoY) growth in net profit at Rs 485 million in December 2017 quarter (Q3FY18). The housing finance company had profit of Rs 464 million in the same quarter year ago.

Net interest income (interest earned minus interest expended) during the quarter under review grew 18% to Rs 1,071 million from Rs 907 million in the corresponding quarter of previous fiscal.

The assets quality of the company worsens sequentially with the gross non-performing assets (NPAs) rose to 3.7% as of Q3FY18 against 3.4% as of Q2FY18. Net NPA stood at 2.1% in December quarter against 1.9% in September quarter. The company said the asset quality deteriorated in line with seasonal trends.

Commenting on company performance, Mr. R Varadarajan said — "Q3FY18 results were satisfactory given the seasonal headwinds we faced in the form of moderating growth and deteriorating asset quality. Going forward, accelerating the pace of asset book growth and improving the asset quality will form the bedrock of our efforts."

At 03:02 PM; the stock was trading 7% lower at Rs 561 on BSE. A combined 1.02 million shares changed hands on the BSE and NSE.