Repco Home Finance Ltd's Q1FY19 standalone net profit rises 8.8% yoy to Rs60.90cr : Misses Estimates

The company’s standalone NII stood at Rs114.30cr, up 8.03% yoy but down 6.51% qoq.

Aug 14, 2018 04:08 IST India Infoline Research Team

Repco Home Finance Ltd Q1FY19

Standalone Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
NII 114.30 8.0
Net Profit (adjusted) 60.90 8.8

Repco Home Finance's Q1FY19 NII has improved by 8% yoy to Rs114.3cr against Rs10.5.8cr in Q1FY18. The housing finance company’s standalone net profit was 6% below our estimates due to lower NII growth, which has increased by 8.8% yoy to Rs60.9cr against Rs56cr. NIMs yoy is up by 13bps to 3.44% for the quarter. Its GNPA and NNPA for Q1FY19 end stood at 3.96% and 1.29% respectively.

  • Net interest margin and interest spread remained robust at 4.6% and 3.2% respectively for the quarter driven by cost of funds improvement.
  • The company also reported 22% growth in loan approvals and 28% growth in loan disbursements.
  • Loans sanctions surged to Rs758cr, registering a growth of 22% yoy.
  • While the overall loan book rose 12% yoy to Rs10,074.5cr at the end of June 2018, individual home loan book grew 14% yoy. Loans to the self-employed segment accounted for 57.3% of the outstanding loan book and loans against property product accounted for 18.2% of the same.
  • The provision coverage ratio improved to 40.5% from 32.9% yoy.
  • The capital adequacy ratio stood provisionally at 23.24%, comprising entirely of Tier-1 capital, which stood at Rs1,318.4cr.

Technical View:

Repco Home Finance Ltd is currently trading at Rs. 587.45, down by 12.5 points or 2.08% from its previous closing of Rs. 599.95 on the BSE.
The scrip opened at Rs. 589.30 and has touched a high and low of Rs. 594.45 and Rs. 579.95 respectively. So far 93,770 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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