Repco Home Finance Ltd. (RHFL), a leading housing finance company, announced that its Chief Financial Officer (CFO), K. Lakshmi, has resigned from her position due to personal reasons.
The company confirmed her departure, effective from the close of business on September 6, 2024.
Lakshmi’s exit marks a significant leadership change for the company, which operates a vast network across multiple states in India.
CFO K. Lakshmi Steps Down
In a regulatory filing, Repco Home Finance revealed that K. Lakshmi tendered her resignation, citing personal reasons.
After serving the company for an unspecified duration, Lakshmi’s departure comes at a time when the company has been making strides in both financial performance and geographic expansion.
The company noted, “K. Lakshmi has been relieved from her duties with effect from the close of business hours on September 6, 2024.”
As the company transitions to find her replacement, it remains to be seen how the leadership change will impact its operations soon.
Extensive Network Across Key Regions
Repco Home Finance continues to be a dominant player in the home loan segment, particularly in South India.
The company operates 168 branches and 44 satellite centers across 12 states and one union territory, including Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Kerala, Maharashtra, and Gujarat, among others.
With a strong presence in both urban and semi-urban regions, the company is well-positioned to serve the growing demand for housing finance across India.
The company’s expansive network highlights its ability to penetrate diverse markets, catering to various demographics with its home loan products.
Financial Performance: Strong Growth in Q1 FY25
Despite the leadership shift, Repco Home Finance reported robust financial results for Q1 FY25. The company’s consolidated net profit surged by 21.12%, reaching Rs 99.44 crore compared to Rs 82.08 crore in Q1 FY24.
This was driven by a 15.34% increase in total revenue from operations, which grew to Rs 392.58 crore, up from Rs 340.28 crore in the same quarter the previous year.
This performance reflects the company’s operational resilience and its ability to navigate an increasingly competitive housing finance market.
Repco’s focus on semi-urban and rural markets has been a key driver of its growth, and the company remains committed to expanding its footprint in these regions.
Market Reaction: Stock Dips After CFO Exit
Following the announcement of K. Lakshmi’s resignation, Repco Home Finance’s stock witnessed a slight decline.
The scrip fell by 0.61%, closing at Rs 531.80 on September 6, 2024. While the drop was not significant, it does indicate a cautious reaction from investors concerned about the leadership transition.
Investors will be closely monitoring how Repco Home Finance navigates this change, especially given the strong financial growth the company has exhibited in recent quarters.
The next CFO appointment will be crucial in maintaining the company’s upward trajectory, both in terms of financial performance and strategic growth.
What’s Next for Repco Home Finance?
As the company continues to expand its presence in key markets across India, the departure of a key executive like the CFO could introduce some short-term uncertainty.
However, Repco Home Finance’s strong financial performance and extensive network position it well for continued growth.
With a solid foundation in place and a leadership transition underway, the market will be keen to see how the company builds on its recent successes and whether the new CFO can continue driving profitability and operational efficiency.
Conclusion
K. Lakshmi’s resignation as CFO of Repco Home Finance marks an important leadership shift for the company.
Despite this change, the company has demonstrated strong financial performance, reflecting its resilience and ability to grow in a competitive market.
Investors and stakeholders will be keeping a close eye on Repco’s next move, especially as it seeks to fill this key leadership role.
Stay tuned for further updates on Repco Home Finance’s strategic decisions and how the company adapts to this transition.