Repco Home Finance (REPCOHOME) Q4 15/16 earnings summary

Executive summary

• FY16 loan book reached Rs 7,691.2 crore, up 28% YoY; PAT was Rs 150.1 crore, up 21%, with asset quality broadly stable.

• Sanctions rose 28.51% to Rs 3,082.76 crore and disbursements increased 30.72% to Rs 2,851.20 crore.

Financial highlights

• Revenue from operations was Rs 880.68 crore vs Rs 691.91 crore; net interest income was Rs 303.9 crore, up 28%.

• Standalone PBT was Rs 230.08 crore vs Rs 186.17 crore; PAT was Rs 150.08 crore vs Rs 123.08 crore.

• Consolidated PAT was Rs 154.06 crore vs Rs 125.34 crore; consolidated EPS was Rs 24.68 basic and Rs 24.66 diluted.

• Board recommended a dividend of Rs 1.80 per Rs 10 share, up from Rs 1.50; payout ratio was 9.03%, including dividend tax.

Outlook and guidance

• Growth focus: deepen southern-region presence, expand contiguously into other states, target underpenetrated markets and open 12–15 branches annually.

• Priorities include funding diversification, cost control, stronger asset quality, maintaining margins and returns, and lifting provision coverage to 100% within two years.

• Expected further interest-rate softening may increase the share of NCD and commercial-paper funding relative to bank borrowings.