Repco Home Finance Q2 - Delivered An Operational Beat; Management Change Could Be A Trigger: Yes Securities
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Yes Securities Research Report
Repco Home Finance Ltd. delivered a 10%/14%/23% beat on our net interest income/pre provision operating profit/profit after tax estimates, despite undershooting our loan book estimate (marginal contraction versus marginal growth).
While Repco Home Finance's disbursements were in-line at Rs 4.8 billion, the portfolio run-off was substantially higher (at annualised 19%, was closer to pre-Covid-19 level) underpinned by significant spike in balance transfer out activity (monthly run-rate reverted to Rs 1.2-1.5 billion).
Reported net interest margin/spread improved by material 30-40 basis points QoQ aided by firm portfolio yield, interest income recovery from non-performing loan accounts and benign funding cost.
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