REPCO HOME 2023-24 Annual Report Analysis

Thu, 11 Jul

REPCO HOME has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during the year 2023-24.

REPCO HOME Income Statement Analysis

• Interest income during the year rose 18.8% on a year-on-year (YoY) basis.
• Interest expenses were up by 20.6% YoY during the same period.
• Operating expenses declined by 15.8% YoY during the year.
• The company's net interest income (NII) increased by 16.5% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 5.1% in FY24 as against 4.8% in FY23.
• Other income increased by 13.3% YoY during the year.
• Net profit for the year increased by 31.6% YoY.
• Net profit margins during the year increased to 27.3% in FY24 from 24.6% in FY23.

REPCO HOME Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	12,837	15,245	18.8%
Other Income	Rs m	154	175	13.3%
Interest Expense	Rs m	7,011	8,456	20.6%
Net Interest Income	Rs m	5,827	6,790	16.5%
Operating Expense	Rs m	1,824	1,535	-15.8%
Pre-provision Operating Profit	Rs m	4,157	5,429	30.6%
Provisions & Contingencies	Rs m	23	17	-25.0%
Profit before tax	Rs m	4,008	5,247	30.9%
Tax	Rs m	1,047	1,300	24.2%
Profit after tax	Rs m	3,163	4,163	31.6%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	4.8	5.1
Net profit margin	%	24.6	27.3

Don't Miss: Key Information for Long-term Investors

REPCO HOME Balance Sheet Analysis

• The company's deposits during FY24 stood at Rs 0 m as compared to Rs 0 m in FY23, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 130.0 bn as compared to Rs 119.3 bn during FY23, a rise of 8.9%.
• Cost of deposits for REPCO HOME rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 2.0 bn during the year from Rs 1.5 bn in FY23.
• Borrowing stood at Rs 10.7 bn, a fall of 1.9% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 138.0 bn as against Rs 126.0 bn during FY23, thereby witnessing a rise of 9.5%.

REPCO HOME Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	25,892	29,854	15.3%
Advances	Rs m	119,324	129,984	8.9%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	1,487	2,012	35.3%
Borrowings	Rs m	10,905	10,693	-1.9%
Total Assets	Rs m	125,964	137,967	9.5%

Current Valuations for REPCO HOME

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 66.5, an improvement from the EPS of Rs 50.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 556.9, stands at 5.0 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.2 times, while the price to income ratio stands at 1.4 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	205.2	243.7
Earnings per share (Unadj.)	Rs	50.6	66.5
Diluted earnings per share	Rs	50.6	66.5
Avg P/E ratio	Rs	3.9	5.0
Avg P/ABV ratio	Rs	0.8	1.2
Avg Market Cap	Rs	12,210	21,019
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for REPCO HOME

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 12,998,370.0x during FY24, from 11,932,430.0x during FY23. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio decreased and stood at 0.36x during FY24, from 0.42x during FY23. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): REPCO HOME's capital adequacy ratio (CAR) was at 34.0% as on 31 March 2024 as compared to 35.8% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company improved and stood at 13.9% during FY24, from 12.2% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at 3.02% during FY24, from 2.51% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 10.46% during FY24, from 9.00% during FY23. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. REPCO HOME's gross NPA ratio stood at 4.1% as of 31 March 2024 compared to 5.8% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of REPCO HOME was 2.2% in financial year 2024. This compared with 3.7% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	11,932,430.0	12,998,370.0
Debt to Equity Ratio	x	0.4	0.4
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	35.8	34.0
Return on Equity	%	12.2	13.9
Return on Assets	%	2.5	3.0
Return on Capital Employed	%	9.0	10.5
% of Gross NPAs	%	5.8	4.1
% of Net NPAs	%	3.7	2.2
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how REPCO HOME has performed over the last 5 years, please visit here.

REPCO HOME Share Price Performance

Over the last one year, REPCO HOME share price has moved up from Rs 315.9 to Rs 556.9, registering a gain of Rs 241.0 or around 76.3%.

Overall, the S&P BSE SENSEX is up 22.0% over the year.

(To know more, you can check out historical annual results for REPCO HOME here and quarterly results for REPCO HOME here)