Repco Home Finance Q2 Results Review - Another Strong Quarter Of Profitability: Yes Securities

Yes Securities Report

Repco Home Finance Ltd. yet again delivered a strong retuan on asset/return on equity of 3.3%/16% in Q2 FY25 aided by asset quality improvement, higher other income, and resilient spread/margin. Loan disbursements at Rs 8.67 billion were up 27.5% QoQ/8.5% YoY, but the increase in portfolio run-off (BT Out) restrained loan book expansion to 1.9% QoQ/8.1% YoY.

Portfolio spread witnessed only a marginal decline to 3.34% with 15-20 increase in cost of fund, which was driven by repricing of bank loans, further decline in share of NHB borrowings and higher incremental cost of bank loans. Portfolio Yield improved by 10 bps qoq, aided by residual benefit from the 20 bps MLR hike taken during April-May and loan book mix shift further towards Home Equity (250+ bps rate differential over home loan).

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