Repco Home Finance Limited — PPTs, 16-05-2025: Investor Presentation

1. Financial Highlights:

Repco Home Finance Ltd reported loan sanctions of ₹3,518.9 Cr and disbursements of ₹3,284.2 Cr for FY25, up from ₹3,340 Cr and ₹3,134.9 Cr respectively last year. Total income rose 12% YoY to ₹1,724.6 Cr, with net profit increasing 11% to ₹439.4 Cr. The loan book expanded to ₹14,491.8 Cr from ₹13,513.4 Cr. Net interest margin remained stable at 5.2%. Asset quality improved notably, with GNPA declining to 3.26% from 4.08%, aided by a lower share of stage-2 assets at 9.73%. Cost-to-income ratio rose to 27.5% due to higher employee expenses. Return on equity moderated slightly to 15.2% from 15.8%.

2. Strategic Initiatives & Growth Drivers:

Growth was fueled by deepening presence in existing markets and selective entry into underserved regions across 12 states and 1 UT through 189 branches. The portfolio remains focused on retail housing loans, balanced between non-salaried (52%) and salaried borrowers (48%). Housing loans make up 73% of assets, with home equity at 27%. Loan sanctions and disbursements accelerated in Q4, reflecting operational efficiency and steady demand.

3. Business Developments:

No new acquisitions or partnerships were announced. Strong loan recovery and risk management efforts contributed to improved asset quality. The company enhanced its borrowing profile by increasing funds from commercial banks while reducing reliance on the National Housing Bank, helping optimize funding costs.

4. Market Position & Competitive Advantage:

Repco holds a leadership position with 57% of its loan book concentrated in South India and growing presence in other regions. Its competitive edge lies in a balanced portfolio, customer-centric housing solutions tailored for retail clients, and disciplined risk control practices underpinning steady sector standing.

5. Investor Implications:

Improving asset quality, consistent margins, and healthy loan growth highlight positive growth potential. Controlled cost increases and strong capital position are positives; however, investors should watch execution risks from geographic expansion and portfolio diversification. The strategic focus on non-salaried lending broadens risk distribution and supports long-term stability.