Any current/future new fundraising through debt or equity?

The company is actively approaching the National Housing Bank (NHB) for loans, with proposals currently in the pipeline, implying potential new borrowing through NHB loans during the current year. They have approval from the AGM and the Board to tap the Non-Convertible Debenture (NCD) market and will consider raising funds through NCDs if market conditions are favorable. There are no fixed plans for securitization currently; however, they remain open to possible Pass-Through Certificate (PTC) transactions if opportunities arise. No specific equity fundraising plans were mentioned in the pro

Any current/future capex/capital investment/strategic investment?

The company has invested approximately INR27 crores so far on new software, with Phase 1 (LLMS and EGL) stabilized and Phase 2 (support functions) in various stages of implementation and testing. There is an ongoing plan to expand touchpoints, with an expected increase from 227 outlets (184 branches, 43 satellite centers, plus 2 asset recovery branches) to approximately 250 by March 2025. No specific mention of future large-scale capex or strategic investments beyond branch expansion and technology upgrades. The focus appears to be on organic growth through increasing branches and enhancing te

Future growth expectations in sales/revenue/volumes?

The company is on a growth path and confident of reaching previous high levels in coming years. Disbursement guidance for FY2025 is between INR3,600 to INR3,800 crores, expecting around 30% growth in the second half compared to the first half. New sales hires (around 170 foot-on-street salespeople plus branch heads) and expanded sourcing channels (corporate DSAs, connectors) aim to boost sales. Overall sales team strength may increase by 20-30 employees by year-end. Increasing use of DSAs and connectors expected to raise their share of disbursements from about 30% to nearly 40% by year

Future growth expectations in earnings/operating earnings/profits/EPS?

The company expects continued growth momentum in its business parameters and is positive about meeting its guidance numbers for FY25. Disbursements are targeted between INR 3,600 to INR 3,800 crores, with recruitment of experienced sales personnel to boost growth in H2 FY25. AUM growth may slightly fall short of the INR 15,000 crores target by INR 100-200 crores due to elevated repayments and BTOuts, but inorganic growth via book purchase or DA transactions could bridge the gap. Profitability remains strong with Q2 FY25 PAT of INR 113 crores (15% YoY growth), ROA at 3.3%, and ROE at 16%.

Current/ Expected Orderbook/ Pending Orders?

The technically written-off assets amount to approximately INR100 crores currently. The total write-off for the last 12 months is INR13 crores, all technical write-offs. Actual write-offs historically are less than INR15-20 crores. The company has issued around 1,700 demand notices in the current half-year, with 500 auction notices and 447 possession notices. Auctioning of Stage 3 NPA accounts is an ongoing activity, with a mega auction planned for December. Repayments in the last year have increased to around INR200 crores per month, up from INR150 crores roughly a year ago. Sales and collect

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Repco Home Finance LtdQ3 FY24Finance

Repco Home Finance Ltd Q3 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹393P/E: 5.5Market Cap: ₹2.5K CrSector: Finance

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

Yes

Order

Capex

N/A

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

→The company is on a growth path and confident of reaching previous high levels in coming years.
→Disbursement guidance for FY2025 is between INR3,600 to INR3,800 crores, expecting around 30% growth in the second half compared to the first half.
→New sales hires (around 170 foot-on-street salespeople plus branch heads) and expanded sourcing channels (corporate DSAs, connectors) aim to boost sales.
→Overall sales team strength may increase by 20-30 employees by year-end.
→Increasing use of DSAs and connectors expected to raise their share of disbursements from about 30% to nearly 40% by year-end.
→Historically, the second half exhibits better sales activity (Q3 and Q4 stronger than H1).
→The target AUM is INR15,000 crores, though slight shortfall (INR100-200 crores) is possible due to repayments.
→Efforts to reduce repayments via customer engagement and rate reductions are underway to support growth.

Margin guidance

Category 3

→The company expects continued growth momentum in its business parameters and is positive about meeting its guidance numbers for FY25.
→Disbursements are targeted between INR 3,600 to INR 3,800 crores, with recruitment of experienced sales personnel to boost growth in H2 FY25.
→AUM growth may slightly fall short of the INR 15,000 crores target by INR 100-200 crores due to elevated repayments and BTOuts, but inorganic growth via book purchase or DA transactions could bridge the gap.
→Profitability remains strong with Q2 FY25 PAT of INR 113 crores (15% YoY growth), ROA at 3.3%, and ROE at 16%.
→The company maintains a spread of 3.4% and NIM of 5.1%, though slightly lower than the previous year.
→Cost-to-income ratio is stable; non-interest income is benefiting from increased insurance commission.
→Focus on reducing Stage 2 overdues and improving collections with additional manpower is expected to improve operating earnings.

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Fundraise plans

Yes

→The company is actively approaching the National Housing Bank (NHB) for loans, with proposals currently in the pipeline, implying potential new borrowing through NHB loans during the current year.
→They have approval from the AGM and the Board to tap the Non-Convertible Debenture (NCD) market and will consider raising funds through NCDs if market conditions are favorable.
→There are no fixed plans for securitization currently; however, they remain open to possible Pass-Through Certificate (PTC) transactions if opportunities arise.
→No specific equity fundraising plans were mentioned in the provided discussion.

Order book

→The technically written-off assets amount to approximately INR100 crores currently.
→The total write-off for the last 12 months is INR13 crores, all technical write-offs.
→Actual write-offs historically are less than INR15-20 crores.
→The company has issued around 1,700 demand notices in the current half-year, with 500 auction notices and 447 possession notices.
→Auctioning of Stage 3 NPA accounts is an ongoing activity, with a mega auction planned for December.
→Repayments in the last year have increased to around INR200 crores per month, up from INR150 crores roughly a year ago.
→Sales and collection teams have been increased for better recovery and business growth.
→The company expects to reach around INR15,000 crores AUM by FY25, but may fall short by INR100-200 crores if current repayment trends continue.
→Disbursement target for FY25 is around INR3,600 to INR3,800 crores.

Capex plans

→The company has invested approximately INR27 crores so far on new software, with Phase 1 (LLMS and EGL) stabilized and Phase 2 (support functions) in various stages of implementation and testing.
→There is an ongoing plan to expand touchpoints, with an expected increase from 227 outlets (184 branches, 43 satellite centers, plus 2 asset recovery branches) to approximately 250 by March 2025.
→No specific mention of future large-scale capex or strategic investments beyond branch expansion and technology upgrades.
→The focus appears to be on organic growth through increasing branches and enhancing technology infrastructure rather than inorganic acquisitions or large capital expenditures at this stage.

How does Repco Home Finance Ltd rank vs peers in Finance?

Pro feature

1Repco Home Finance Ltd

Rev 4Mar 3

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