Repco Home Finance (REPCOHOME) Q4 08/09 earnings summary

Executive summary

• FY09 net profit rose to Rs 270.05 crore? [Need unit correction: Rs 2700.50 lakh = 27.005 crore]. Use lakh. Net profit Rs 2,700.50 lakh, up more than 73% YoY, with loan portfolio growth above 51% and NNPA at 0.70%.

• Sanctions and disbursements grew more than 60% and 55% YoY, respectively, despite subdued housing demand and broader economic uncertainty.

Financial highlights

• Operating income Rs 11,482.43 lakh vs Rs 7,139.30 lakh; PBT Rs 3,719.67 lakh vs Rs 2,145.37 lakh; PAT Rs 2,700.50 lakh vs Rs 1,557.00 lakh.

• Housing-loan sanctions reached Rs 472.95 crore, disbursements Rs 428.37 crore and year-end loans outstanding Rs 990.59 crore.

• Interest income from housing loans was Rs 1,038.53 lakh; interest and other financial charges rose to Rs 6,964.85 lakh from Rs 4,251.58 lakh.

• Basic EPS was Rs 6.39 vs Rs 4.61; diluted EPS Rs 5.85 vs Rs 4.55.

Outlook and guidance

• FY10 targets: sanctions Rs 800 crore, disbursements Rs 725 crore and portfolio Rs 1,550 crore; targeted portfolio growth exceeds 55%.

• Plan to open 10–12 branches in FY10, while expanding activity in metro, Tier I and Tier II markets and smaller towns.

• Credit standards are being tightened, with asset quality prioritized; higher borrower margins and credit scoring support risk-based pricing.