ADVERTISEMENT

Repco Home Finance Q2 - Delivered An Operational Beat; Management Change Could Be A Trigger: Yes Securities

Repco Home Finance Q2 - Delivered An Operational Beat; Management Change Could Be A Trigger: Yes Securities

Buildings stand at the East Kidwai Nagar General Pool Residential Accommodation Redevelopment Project in Delhi. (Photographer: Ruhani Kaur/Bloomberg)
Buildings stand at the East Kidwai Nagar General Pool Residential Accommodation Redevelopment Project in Delhi. (Photographer: Ruhani Kaur/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

Yes Securities Repco Home Finance Q2FY22 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.