Repco Home Finance - Stable Q3; Asset Quality Surprises Positively: Motilal Oswal
Maharashtra Housing and Area Development Authority (MHADA) low-cost residential buildings stand in the Kurla area of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Repco Home Finance - Stable Q3; Asset Quality Surprises Positively: Motilal Oswal

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Motilal Oswal Report

Repco Home Finance Ltd.’s profit after tax grew 14% YoY to Rs 796 million in Q3 FY21, 8% above our estimates.

The profit after tax beat was driven by an net interest income beat, marginally offset by slightly higher provisions.

The quarter gone by was characterized by a recovery in disbursements, improvement in margin, and maintenance of asset quality.

From 65–70% of YoY levels in Q2 FY21, disbursements improved to ~85% of YoY levels to Rs 5.5b in the quarter. The share of home loans in total disbursements improved 250 basis point YoY to 80%.

Click on the attachment to read the full report:

Motilal Oswal Repco Home Finance Q3FY21 Result Update.pdf

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