India Home Loan Ltd Sector Industry

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1 Page 1 of 5 Company Profile India Home Loan Ltd (IHLL) was incorporated and registered in Maharashtra on December 19, 1990 as Manoj Housing Finance Company Ltd by Mr. G. N. Gupta, Mr. Mukund Gupta, Mr. Manoj Keshwani, Mr. B. G. Keshwani, Mr. K. S. Vardhan, Mr. I. N. Parwani, Mr. M. M. Gupta, and Mr.. K. Punjabi. In 2009, the company changed its name from Manoj Housing Finance Company Ltd to India Home Loan Ltd. bout 63.4% of the company s shareholding is held by promoter group and remaining by Non- Institutional promoters. The company is a housing finance company registered with National Housing Bank and entered the Indian retail finance market in The company s management personnel include Mr. Mahesh Pujara, who is the Chairman and Managing Director. He has expertise in areas of capital markets and stock exchange. Stock Price Last Close Price (28/01/2016) Market Cap (Cr.) (31/12/2015) Price in Rs. 52 Wk High/Low 57.50/35.00 vg. Volume (1 Mo) (Rescaled to 100 for ease of comparison) It has its registered office located in Mumbai and operates in two states; Gujarat and Maharashtra and has two retail offices across these two states. The company has a staff strength of 18 members. Business Overview IHLL is a housing finance company providing housing finance for the purchase and construction of house and apartments in the small towns and countryside of Gujarat. It offers services including home loan, loan against property and NRI loan services. IHLL provides home loans to individuals and families for purchase, construction and extension. It also provides loans for repair and renovation of houses and home loans to families in the self-employed category where formal income proofs are not easily available and the repayment capacity of such families are appraised based on their cash flows. part from extending home loans, IHLL offers loans for purchase and construction of non-residential properties and also offers mortgage loans against existing residential and commercial properties. It also offers developer loans on a selective basis. Its Home loan products are being offered at fixed rates. s of March 31, 2015, out of the total revenue, 69.1% is provided for home purchase and construction in the retail home loan segment; and 30.9% is provided for builder and developers loan for long term housing projects. In FY 2015, 92.7% revenue was earned from interest on loans, 6.9% from processing fees and other charges; and the remaining from the recovery of bad debts. Financials Revenue Gross Margin % Operating Income Operating Margin % Diluted EPS Book Value Per Share Operating Cash Flow Capital Expenditure Free Cash Flow Profitability verage Values unless stated Return on ssets % Return on Equity % sset Turnover Net Margin % Financial Leverage Financial Health except Debt/Equity (Ratio) Long Term Debt Total Equity Debt/Equity Working Capital In the coming years, company is also planning to offer home loans under the Rural Housing Fund scheme of NHB wherein loans are given in rural areas for select categories such as Backward classes or Minority Community or Women owners or families having annual household income less than 2 lacs. Report as of 29-Jan Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

2 Page 2 of 5 Income Statement Total Revenue Cost of Revenue Gross Profit Operating Expense Operating Income Pre-tax Income Tax Provision Minority Interests Balance Sheet Stock Holders Equity Long Term Debt Total Non-Current Liabilities Payables Total Liabilities Net PPE Goodwill and other Intangible ssets Total Investments Total Non-current ssets Trading and Other Receivables Inventory Cash and Cash Equivalents Total ssets Cash Flows Depreciation and mortization Change in Working Capital Operating Cash Flow Capital Expenditure Investing Cash Flow Net Common Stock Issuance Net Issuance Payments of Debt Cash Dividends Paid Financing Cash Flow Changes in Cash Report as of 29-Jan Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

3 Page 3 of 5 Financial Performance In FY 2015, IHLL s total revenues grew by 21.3% to INR 2.46 crores versus INR 2.03 crores in FY It registered an increase in the operating profit by 1.2% to INR 0.82 crores versus FY There was a decline in operating margins by from 40.05% in FY 2014 to 33.3% in FY The company suffered a drop in net profit by 3.3% to INR 0.58 crores in FY 2015 versus FY Revenue Growth Key Risks The risks which significantly impact profitability and financial strength are credit risk, increase in NP, interest rate risk, liquidity risk and operational risk that are inherent in the housing finance business. Gross Margin Competitors Housing Development Finance Corp Ltd (HDFC) and SRG Housing Finance Ltd are two of key competitors of the company. HDFC is a provider of Housing Finance in India. It is engaged in providing housing finance primarily to individual households and corporates for the purchase and construction of residential housing. Its financial network includes diversified services such as banking, insurance (life and general), asset management, realty, real estate venture capital, and education loans. It has three representative offices in Dubai, London and Singapore offering Home Loan products to Non-Resident Indians and Persons of Indian Origin. HDFC s revenue grew by 22.6% in FY 2015 to INR 29, crores versus the last year. SRG is a housing finance company registered and incorporated on March 10, 1999 in the name of Vitalise Finlease Private Ltd. It provides loans under housing finance sector for construction, additions, alterations, repair & renovation purpose. Its offers housing loan products including Individual housing loans, Construction loan, Plot loan, NRI Loans, Loan against property and builders loan. SRG s revenue grew by 45% in FY 2015 to INR 6.87 crores versus the last year. Operating Margin Report as of 29-Jan Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

4 Page 4 of 5 Industry Overview The growth in housing industry and housing finance activities in recent years reflect the optimistic state of the housing finance market in the country. The asset quality which had deteriorated in general across the banking sector during FY 2015 is expected to remain weak until economic growth gathers momentum. Even, net-interest margins are expected to follow the similar pattern after experiencing decline by the banking sector. There has been no change in the status of demand in the real estate sector and inventory of unsold properties had bulged to an all-time high level. s a result, most of the lenders stepped up the disbursals of loans against existing properties. The spurt in mortgage loans, at a time when the economy has been at its low could prove difficult while effecting recoveries. Hence the risks have increased in the housing finance market when the demand for new residential properties is very sluggish and property valuations have increased. The market scenario has become much more challenging and it is expected that the scenario might not change for a further period of 12 to 15 months. Price/Earnings Trailing Returns Quarterly Results except EPS (Rs.) Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Revenue Expenditure Interest PBDT Depreciation PBT Tax Net Profit Equity EPS Return on Invested Capital (ROIC) *Standalone figures Report as of 29-Jan Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

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