Repco Home Finance (REPCOHOME) Q4 09/10 earnings summary

Executive summary

• FY10 portfolio reached Rs.1,408 crore, up 42% YoY; profit after tax rose 64% to Rs.44.34 crore, with net NPA at 0.86%.

• Growth came amid intense competition and teaser-rate offers; credit policy was revamped with risk-weighted scoring and cautious pricing.

Financial highlights

• Operating income was Rs.163.60 crore versus Rs.112.75 crore; total income was Rs.164.90 crore versus Rs.114.82 crore.

• PBT rose 64% to Rs.61.15 crore; PAT rose 64% to Rs.44.34 crore from Rs.27.01 crore.

• Basic EPS was Rs.10.11 versus Rs.6.39; diluted EPS was Rs.10.11 versus Rs.5.85.

• Loans sanctioned reached Rs.649.05 crore, disbursements Rs.583.08 crore, and outstanding loans Rs.1,408.01 crore; each grew over 36% YoY.

Outlook and guidance

• FY11 targets: sanctions of Rs.1,000 crore, disbursements of Rs.900 crore, and outstanding portfolio of Rs.2,100 crore.

• Plans call for 28 new branches across Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, Odisha and Maharashtra; builder/corporate alliances and rural housing initiatives are also planned.

• An IPO was planned for FY11 to enhance stakeholder value.