Repco Home Finance (REPCOHOME) Q4 14/15 earnings summary

Executive summary

• FY15 loan book expanded 28.98% to Rs 6,012.92 crore, with disbursements up 27.16%; asset quality improved and post-DTL PAT rose 11.79%.

• Affordable housing, non-salaried borrowers and Tier II/III cities remained the core focus, supported by a 142-location network across 11 states and Puducherry.

Financial highlights

• Income from operations reached Rs 692.20 crore, up 29.59% YoY; total income was Rs 693.02 crore versus Rs 535.34 crore.

• Net interest income was Rs 237.33 crore, up 24.36%; PBT rose to Rs 186.17 crore from Rs 149.13 crore.

• Post-DTL PAT was Rs 123.08 crore, up 11.79% YoY; pre-DTL PAT was Rs 137.31 crore, up 24.72%.

• Sanctions rose 31.63% to Rs 2,398.88 crore; disbursements increased 27.16% to Rs 2,181.15 crore, and the loan book grew 28.98%.

Outlook and guidance

• Planned to open 12–15 branches annually, deepen penetration in existing markets and expand into other states on a contiguous basis.

• Growth priorities included underpenetrated markets, an optimal salaried/non-salaried mix, diversified funding and effective borrowing-cost management.

• Targeted stronger provision coverage, with a stated goal of reaching 100% over the next 2–3 years; margin and return preservation remained priorities.