Repco Home Finance Limited — Investor Meet, 19-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Repco Home Finance Limited has achieved significant growth in Q2 FY '25, with a profit after tax (PAT) of INR 113 crores, reflecting a 15% year-over-year increase. The loan disbursement for the quarter reached INR 867 crores, up from INR 797 crores in the same quarter last year. The company's loan book expanded to INR 13,964 crores, representing an 8.1% growth compared to INR 12,922 crores a year earlier. Net interest margin (NIM) stood at 5.1%, while return on equity (ROE) and return on assets (ROA) were recorded at 16% and 3.3%, respectively. The gross non-performing assets (GNPA) ratio improved to 3.96%, down from 4.93% a year ago.

**Future Outlook and Growth Drivers:** Management highlighted a positive future outlook, driven by strategic recruitment in sales and collections aimed at enhancing disbursements and reducing overdue accounts. The company is on track to meet its financial targets for FY '25, although it anticipates falling slightly short of the INR 15,000 crores AUM target due to higher repayment rates.

**Order Book and Operational Updates:** With 227 operational touchpoints, including 184 branches, Repco aims to increase this number to 250 by March 2025. Current initiatives focus on utilizing new software systems to enhance operational efficiency.

**Analyst Q&A Insights:** Analysts raised questions about revenue projections and NPA management, emphasizing the performance of the new portfolio versus older loans. Management reassured that newer disbursements show lower NPA rates.

**Strategic Focus Areas:** Management emphasized a clear focus on addressing Stage 2 asset quality issues while boosting overall disbursement efforts through enhanced sales channels and technology implementation.

**Investor Insight:** The company's strong financial health, combined with a proactive growth strategy, suggests a favorable outlook. The insights from analyst queries support a view towards potential upside, aligning with a ‘buy’ perspective for investors looking at growth in the housing finance sector.