Repco Home Finance Limited announced financial results prepared in congruence with Indian Accounting Standards (IND AS) for the quarter ended June 30, 2019. Company's performance remained resilient even amid slowing economic activity.
Performance in Q1FY20 Vs Q1FY19
- Total income grew 14% to Rs. 328.4 crs.
- Net interest income stood at Rs. 127.1 Crs and margins at 4.5%.
- Net profits stood at Rs. 62.3 crs.
- Loans sanctions stood at Rs. 698.1 crs
- Loan disbursements stood at Rs. 667.4 crs
- Interest spread remained healthy at 3.1% respectively.
- Return on assets and equity remained robust at 2.2% and 17.7% respectively.
Loan Book and composition
The overall loan book rose 13% to Rs. 11,342.1 crs at the end of June 2019. Loans to the selfemployed segment accounted for 54.2% of the outstanding loan book and loans against property product accounted for 18.5% of the same.
The gross non-performing assets (GNPA) stood at 4.2% as at the end Of June 2019 as compared to from 4.0% as at the end of June 2018.
Provision for Expected Credit Losses
As required under IND AS, the company has carried provisions for expected credit losses to the tune of Rs. 171.9 crs or 1.5% on total loan assets.
Stage 3 coverage ratio stood at 31% at the end of June 2019 as compared to 11% in the previous year.
The capital adequacy ratio stood provisionally at 24.5%, comprising entirely of Tier-1 capital. The minimum capital adequacy ratio prescribed by the National Housing Bank is 12.0%.
Company entered Rajasthan State by opening two branches in Q1FY20.
As on June 20, 2019, the Company had a total network of 147 branches and 27 satellite centers spread across Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Kerala, Maharashtra, Odisha, Gujarat, West Bengal, Madhya Pradesh, Jharkhand, Rajasthan and the Union Territory of Puducherry.
Commenting on the results, Mr. Yashpal Gupta MD & CEO of Repco Home Finance said - "Given the context of general elections' related uncertainty, challenges faced by the NBFC and HFC sector resulting in slowdown in manufacturing activity and more worryingly slowdown in consumption causing disruptions in the lives of many of our customers engaged in the consumption value chain, our financial performance remained resilient. We pin our hopes on the ongoing credit squeeze abating over the next 2 quarters for the economic activity to pick up and the consumer confidence to return. In the meantime, our focus will be on stability and maintaining the quality of the Balance Sheet".
Shares of REPCO HOME FINANCE LTD. was last trading in BSE at Rs.303.55 as compared to the previous close of Rs. 306.5. The total number of shares traded during the day was 22091 in over 848 trades.
The stock hit an intraday high of Rs. 311.1 and intraday low of 295.3. The net turnover during the day was Rs. 6787804.