Repco Home Finance (REPCOHOME) Q1 24/25 earnings summary

Executive summary

• Profitability improved in Q1 FY25, with net profit rising to INR 105.4 crores (₹1,054 Mn), and loans outstanding reaching INR 13,701 crores (Rs. 137,011 Mn); capital adequacy ratio stood at 34%.

• Disbursements were INR 680 crores in Q1 FY25 versus INR 684 crores in Q1 FY24; sanctions stood at INR 727 crores versus INR 726 crores YoY.

• Loan book grew 8.3% YoY to INR 13,701 crores as of June 30, 2024.

• Branch network expanded to 253 outlets (181 branches, 42 satellite centers) across 12 states and 1 union territory, with further expansion planned.

• Management remains confident of achieving FY25 targets, focusing on GNPA reduction, disbursement growth, and AUM expansion.

Financial highlights

• Net profit rose 18.35% YoY to INR 105.4 crores in Q1 FY25; consolidated net profit was ₹112.53 crore.

• NIM was 5.14% in Q1 FY25, up slightly from 5.13% YoY; spread maintained at 3.4% with yields at 11.98%.

• ROA at 3.1% and ROE at 16.3% for Q1 FY25, up from 2.8% and 15.8% YoY.

• Cost-to-income ratio improved to 22.8%–23.6% from 25.0%–26.3% YoY.

• Gross NPA at 4.25% (INR 583 crores), net NPA at 1.67%, and provision coverage ratio for Stage 3 assets at 62%.

Outlook and guidance

• Targeting AUM of INR 15,000 crores by March 2025 and INR 20,000 crores in two years.

• Disbursement guidance for FY25 is INR 3,600–3,800 crores, with expected book increase of INR 1,500 crores after repayments.

• GNPA targeted to reduce to INR 450 crores (3%) by year-end; Stage 2 assets expected to decline to 10%.

• Management expects credit cost to remain negligible, with possible provision reversals.

• Focus on growth in non-southern states and ongoing business momentum.