Sub: Investor Presentation on financial results for the Quarter ended 30 June 2018

Transcription

1 Home Finance REPCO HOME FINANCE LIMITED. (Promoted by Repco Bank-Govt. of India Enterprise) CIN : L65921N2000PLC RHE'L/SE/17/ August 13, 2018 National Stock Exchange of India Limited, Exchange Plaza, Bandra Kuria Complex, Bandra (E) Mumbai NSE Symbol: REPCOHOME BSE Limited Phiroze Jeejeebhoy Towers Dalai Street Mumbai BSE Security Code: Kind Attn: Listing Department Dear Sir, Sub: Investor Presentation on financial results for the Quarter ended 30 June 2018 We submit herewith a copy of the presentation on the financial performance of the Company for the quarter ended 30 June This is submitted for your information and records. Thanking You, Yours Faithfully, Company Secretary Corporate Office : 3rd Floor, Alexander Square, New No: 2 (Old No. 34 & 35) Sardar Patel Road, Guindy, Chennai Phone : Fax: co@repcohome.com, Registered Office :'REPCO TOWER, No: 33, North Usman Road, T.Nagar, Chennai Phone : / 4037/ 2845

2 Earnings Presentation

3 Agenda Performance Business summary.. Financial performance for Borrowing profile.... Geographic Presence Footprint... Region-wise loan book.. Annexure

4 Performance

5 Business Summary Loans outstanding (June 30, 2018) Rs. 1,000,745 mn Net worth (June 30, 2018) Rs. 13,184 mn Tier 1 capital adequacy ratio 23.24% (Provisional) Average loan per unit Rs. 1.4 mn Number of live accounts 84,741 Current Employee Strength 843 Gross NPA (%) (June 30, 2018) 3.96% Net NPA (%) (June 30, 2018) 2.39% Expected credit loss (%) (June 30, 2018) 0.66% 4

6 performance Figures in Rs million Income from operations Net Interest Income Profit after Tax 2,869 1, % 8% 9% 2,739 1, Sanctions Disbursements Home loan book 7,580 7,039 82,362 22% 28% 14% 6,198 5,484 72,427 5

7 Asset book Figures in Rs million Sanctions and disbursements Loan Book 8,000 7,000 6,000 5,000 6,198 5,484 7,580 7,039 1,00,000 90,000 80,000 70,000 60,000 50,000 90,093 1,00,745 4,000 3,000 40,000 30,000 20,000 June'17 June'18 Sanctions Disbursements Loan book composition Mix of loan portfolio 100% 80% 60% 60.0% 57.3% 100% 80% 60% 19.6% 18.2% 40% 40% 80.4% 81.8% 20% 40.0% 42.7% 20% 0% June'17 June'18 0% June'17 June'18 Salaried Non Salaried Home loans Loans against property 6

8 Income and earnings growth Figures in Rs million Total income Net interest income 3,500 3,000 2,500 2,000 1,500 2,741 2,872 1,200 1,100 1, ,056 1,143 1, Net profit Net worth ,000 13,000 12,000 11,000 10,000 9,000 8,000 11,373 13, , ,000 5,000 June'17 June'18 7

9 Operating cost Figures in Rs million Employee cost Other opex Cost to income ratio 20.0% 15.0% 15.1% 18.4% 10.0% 5.0% 0.0% 8

10 Profitability ratios Net interest margin Spread 4.8% 4.6% 4.4% 4.2% 4.0% 3.8% 3.6% 3.4% 3.2% 3.0% 4.7% 4.6% 3.4% 3.2% 3.0% 2.8% 2.6% 2.4% 2.2% 2.0% 3.3% 3.2% 25.0% 20.0% 15.0% Return on equity 17.4% 19.8% 3.0% 2.5% 2.0% 1.5% Return on assets 2.5% 2.5% 10.0% 1.0% 5.0% 0.5% 0.0% 0.0% 9

11 Asset quality & provisioning Figures in Rs million Gross NPA Net NPA 5,000 4,000 3,000 2,000 1, % 3.96% 3,571 3,987 June'17 June' % 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 3,000 2,500 2,000 1,500 1, % 2,396 June'17 2, % June' % 2.40% 1.90% 1.40% 0.90% 0.40% Gross NPA Gross NPA % Net NPA Net NPA % 45.0% 40.0% 35.0% 30.0% 25.0% Provision coverage ratio 32.9% 40.5% Note Rs. 380 Mn of loans outstanding backed by repossessed collateral assets is included in the aforementioned Jun 18 GNPA amount. Details of the pool Average ticket size Rs. 2.2 mn LTV 56% Provision carried in BS 100% The aforementioned amount EXCLUDES loans outstanding backed by repossessed collateral assets but part of the pool technically written off during Q4FY % June'17 June'18 10

12 Asset quality 90+ dpd(%) 5.0% 4.5% 4.0% 3.5% 4.2% 4.0% 3.4% 3.7% 4.0% 3.0% 2.5% 2.0% 1.5% 1.0% 2.2% 1.2% 2.4% 1.3% 3.1% 2.6% 1.4% 2.6% 1.9% 2.1% 2.9% 1.3% 2.1% 0.5% 0.0% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep'17 Dec'17 Mar'18 June'18 Gross NPA Net NPA 11

13 Mix/Product-wise GNPA (%) 6.0% 5.6% 5.4% 5.0% 4.0% 3.0% 4.1% 4.0% 2.9% 4.0% 2.0% 1.0% 0.0% 1.8% 1.5% 1.2% Salaried Non-Salaried Overall June'18 Mar'18 June'17 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 3.0% 2.4% 3.4% 6.8% 4.9% 6.4% 4.0% 2.9% Housing Loan LAP Overall June'18 Mar'18 June'17 4.0% 12

14 Diversified borrowing profile Source (Rs mn) National Housing Bank Average cost Jun'17 Jun'18 % change 7.6% 10,536 7,292-31% Repco Bank 8.1% 4,946 6,253 26% Commercial Banks 8.2% 45,089 53,321 18% NCDs 8.5% 11,570 12,370 7% 100% 80% 60% 40% 20% 0% 5% 5% 15% 15% 60% 64% 7% 8% 14% 9% Jun'17 Jun'18 CPs 7.9% 3,500 4,000 14% Total 8.2% 75,641 83,236 10% National Housing Bank Commercial Banks CPs Repco Bank NCDs *Weighted average cost 13

15 Geographic Presence

16 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Jun'18 Footprint Presence in 11 states and 1 Union Territory with 140 branches and 23 satellite centers. Presence beyond South: branches in West Bengal, Orissa, Maharashtra, Gujarat, Network Expansion 170 Strong presence Significant presence Recent expansion 90 Not present yet

17 Region-wise loan book Others, 2.8% Andhra Pradesh, 6.8% Telangana, 4.3% Tamil Nadu, 58.9% Gujarat, 2.6% Karnataka, 13.1% Kerala, 3.9% Maharashtra, 7.6% Exposure Annualized States June'18 Mar'18 June'17 YoY growth QoQ growth Andhra Pradesh 6.8% 6.8% 6.9% 10% 9% Telangana 4.3% 4.1% 3.8% 26% 27% Gujarat 2.6% 2.5% 2.2% 37% 37% Karnataka 13.1% 12.7% 12.2% 20% 23% Kerala 3.9% 4.0% 3.9% 13% 7% Maharashtra 7.6% 7.5% 6.7% 28% 20% Tamil Nadu 58.9% 59.8% 61.8% 7% 4% Others 2.8% 2.7% 2.5% 23% 20% Total 100% 100% 100% 12% 10% 16

18 Annexure

19 Shareholding pattern Outstanding shares mn Bodies Corporat es, 1.5% Mutual Funds, 20.1% Resident Individua ls, 9.8% Foreign Portfolio Investors, 27.5% Major non-promoter shareholders % shareholding Aditya Birla Sun Life Mutual Fund 7.0% Franklin Templeton Mutual Fund 6.4% DSP Blackrock Small Cap Fund 6.2% Pabrai Investment Funds 5.9% India Capital Fund Limited 3.4% Apax Global Alpha Limited 2.1% HSBC Global Investment Funds 2.1% Alliance Bernstein India Growth (Mauritius) Limited 1.8% DSP Blackrock Core Fund 1.1% Promoter s, 37.1% NRIs, 1.2% Others, 2.8% 18

20 Profit and loss statement (Rs. million) IND AS Q1 FY19 IND AS Q1 FY18 YoY (%) IGAAP -Q4 FY18 IGAAP - FY18 Income: Revenue from operations 2,869 2,739 5% 2,832 11,054 Other income % 1 23 Total Income 2,872 2,741 5% 2,833 11,077 Expenses: Interest and other financial charges 1,684 1,630 3% 1,610 6,483 Employee benefit expense % Depreciation and amortization expense % 8 31 Other expenses % Provisions & write offs % Total Expenses 1,949 1,885 3% 1,967 7,934 Profit before tax % 866 3,143 Tax expense: Current tax % 249 1,024 Deferred Tax % Net profit/(loss) % 566 2,061 Other comprehensive income % - - Total comprehensive income % 566 2,061 19

21 Relative performance Particulars Units Sanctions Rs. Mn 6,198 7,580 Disbursements Rs. Mn 5,484 7,039 Net interest income Rs. Mn ,143 PAT Rs. Mn NIM % Yield on assets % Cost of funds % Spread % Return on assets % Return on equity %

22 For any Investor Relations queries, please contact: Bala S, Investor Relations Phone: Safe Harbor: This presentation may have certain statements that may be forward looking including those relating to general business plans and strategy of Repco Home Finance Ltd., (RHFL), its future outlook and growth prospects. The actual results may differ materially from these forward looking statements due to a number of risks and uncertainties which could include future changes or developments in RHFL, the competitive environment, the company s ability to implement its strategies and initiatives, respond to technological changes as well as sociopolitical, economic and regulatory conditions in India. All financial data in this presentation is obtained from the audited financial statements and the various ratios are calculated based on these data. This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation or a solicitation of any offer, to purchase or sell, any shares of RHFL and should not be considered or construed in any manner whatsoever as a recommendation that any person should subscribe for or purchase any of RHFL s shares. None of the projection, expectations, estimates or prospects in this presentation should be construed as a forecast implying any indicative assurance or guarantee of future performance, nor that the assumptions on which such future projects, expectations, estimates or prospects have been prepared are complete or comprehensive. This presentation is for information purposes only. This document and its contents should not forwarded or delivered or transmitted in any manner to any person other than its intended recipients, and should not be reproduced in any manner whatsoever. The recipients further represents and warrants that : (i) It is lawfully able to receive this presentation under the laws of the jurisdiction in which it is located, and / or any other applicable laws, (ii) It is not a U.S. person, (iii) This presentation is furnished to it, and has been received, outside of the United States, and (iv) It will not reproduce, publish, disclose, redistribute or transmit this presentation, directly or indirectly, into the United States or to any U.S. person either within or outside of recipient s organisation. 21