Earnings Presentation Q2FY19 www.repcohome.com
Agenda Q2FY19 Performance Business summary.. Financial performance for Q2FY19 Borrowing profile.... Geographic Presence Footprint... Region-wise loan book.. Annexure
Q2FY19 Performance
Business Summary Loans outstanding (Sep 30, 2018) Rs. 1,03,820 mn Net worth (Sep 30, 2018) Rs. 14,310 mn Tier 1 capital adequacy ratio 23.70% (IGAAP, Provisional) Average loan per unit Rs. 1.4 mn Number of live accounts 87,110 Current Employee Strength 880 Gross NPA (%) (Sep 30, 2018) 3.6% Expected credit loss (%) (Sep 30, 2018) 0.69% (Sep 17 0.70%) 4
Q2FY19 performance Figures in Rs million Sanctions Disbursements Home loan book Q2FY19 8,340 7,766 84,829 9% 3% 13% Q2FY18 7,645 7,525 75,129 TN & Pondicherry book Rest of India book Overall loan book Q2FY19 61,607 42,213 1,03,820 5% 21% 11% Q2FY18 58,404 34,807 93,212 5
performance Figures in Rs million Operating income Net Interest Income Profit after Tax 5,778 2,258 1,275 4% 2% 1% 5,581 2,220 1,260 Sanctions Disbursements Loan book 15,920 14,805 1,03,820 15% 14% 11% 13,842 13,007 93,212
Asset book Figures in Rs million Sanctions and disbursements Loan Book 17,000 15,000 13,000 11,000 13,842 13,007 15,920 14,805 1,00,000 80,000 93,212 1,03,820 9,000 60,000 7,000 5,000 40,000 3,000 20,000 Sep'17 Sep'18 Sanctions Disbursements Loan book composition Mix of loan portfolio 100% 80% 60% 60.0% 56.0% 100% 80% 60% 19.4% 18.3% 40% 40% 80.6% 81.7% 20% 40.0% 44.0% 20% 0% 0% Sep'17 Sep'18 Sep'17 Sep'18 Salaried Non Salaried Home loans Loans against property 7
Income and earnings growth Figures in Rs million Total income Net interest income 7,000 6,000 5,000 5,605 5,832 2,500 2,000 2,220 2,258 4,000 3,000 1,500 2,000 1,000 1,000-500 Net profit Net worth 1,400 1,300 1,200 1,100 1,000 900 800 700 600 500 1,260 1,275 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 12,131 Sep'17 14,310 Sep'18 8
Operating cost Figures in Rs million Employee cost Other opex 300 250 200 150 100 50 0 235 267 200 180 160 140 120 100 80 60 40 20 0 120 187 Cost to income ratio 20.0% 15.0% 15.1% 19.0% 10.0% 5.0% 0.0% 9
Profitability ratios Net interest margin Spread 5.0% 4.5% 4.9% 4.5% 3.8% 3.6% 3.4% 3.2% 3.4% 3.1% 4.0% 3.0% 2.8% 3.5% 2.6% 2.4% 3.0% 2.2% 2.0% Return on equity Return on assets 25.0% 20.0% 21.0% 19.0% 3.0% 2.5% 2.8% 2.5% 15.0% 2.0% 10.0% 5.0% 0.0% 1.5% 1.0% 0.5% 0.0% 10
Asset quality 90+ dpd(%) 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.4% 4.2% 2.6% 4.0% 3.4% 3.7% 2.9% 4.0% 3.6% 2.0% 1.5% 1.0% 0.5% 0.0% Sep-16 Dec-16 Mar-17 Jun-17 Sep'17 Dec'17 Mar'18 June'18 Sep'18 Gross NPA 11
Mix/Product-wise GNPA (%) 6.0% 5.0% 4.0% 3.0% 5.6% 5.3% 4.6% 4.0% 3.6% 3.4% 2.0% 1.7% 1.4% 1.5% 1.0% 0.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2.9% Salaried Non-Salaried Overall 3.0% 3.0% Sep'18 June'18 Sep'17 6.2% 6.8% 5.2% 3.6% 4.0% Housing Loan LAP Overall Sep'18 June'18 Sep'17 3.4% 12
Diversified borrowing profile Source (Rs mn) National Housing Bank Average cost Sep'17 Sep'18 % change 7.6% 10,536 6,858-35% Repco Bank 8.2% 4,982 6,537 31% Commercial Banks 8.4% 43,243 60,407 40% NCDs 8.3% 14,370 8,853-38% CPs 7.9% 5,000 4,500-10% Total 8.3% 78,125 87,154 12% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 6% 5% 18% 10% 55% 69% 6% 13% Sep'17 National Housing Bank Commercial Banks CPs Repco Bank NCDs 8% 8% Sep'18 *Weighted average cost 13
Geographic Presence
Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Sep'18 Footprint Presence in 11 states and 1 Union Territory with 141 branches and 24 satellite centers. Presence beyond South: branches in West Bengal, Orissa, Maharashtra, Gujarat, Jharkhand and Madhya Pradesh. Network Expansion Strong presence Significant presence Recent expansion 170 150 130 110 90 70 Not present yet 54 50 72 88 92 122 142 150 156 160 165 30 15
Region-wise loan book Others, 2.6% Andhra Pradesh, 6.7% Telangana, 4.4% Gujarat, 2.8% Karnataka, 13.3% Tamil Nadu, 58.4% Kerala, 3.8% Maharashtra, 7.8% Exposure Annualized States Sep'18 June'18 Sep'17 YoY growth QoQ growth Andhra Pradesh 6.7% 6.8% 6.9% 9% 8% Telangana 4.4% 4.3% 3.9% 26% 21% Gujarat 2.8% 2.6% 2.2% 40% 41% Karnataka 13.3% 13.1% 12.0% 24% 20% Kerala 3.8% 3.9% 3.9% 9% 2% Maharashtra 7.8% 7.6% 7.0% 25% 22% Tamil Nadu (ex. Pondicherry) 58.4% 58.9% 61.5% 6% 8% Total 100% 100% 100% 11% 11% 16
Annexure
Shareholding pattern Outstanding shares 62.56 mn Bodies Corporate s, 1.5% Mutual Funds, 18.2% Resident Individuals, 9.7% Foreign Portfolio Investors, 29.4% Major non-promoter shareholders % shareholding The Pabrai Funds 6.2% DSP Blackrock Mutual Fund 6.0% Aditya Birla Mutual Fund 6.0% Franklin Templeton Mutual Fund 5.8% India Capital Fund Limited 3.9% Alliance Bernstein Funds 2.9% Apax Global Fund 2.1% HSBC Global Investment Funds 1.5% DSP Core Fund 1.1% Sanford C. Bernstein Fund, Inc. 1.1% NRIs, 1.2% Promoters, 37.1% Others, 2.8% 18
Profit and loss statement (Rs. million) Q2FY19 Q2FY18 YoY (%) Q1FY19 QOQ (%) YoY (%) Income: Revenue from operations 2,909 2,843 2% 2,869 1% 5,778 5,581 4% Other income 51 22 138% 3 1854% 54 24 128% Total Income 2,960 2,864 3% 2,872 3% 5,832 5,605 4% Expenses: Interest and other financial charges 1,755 1,626 8% 1,684 4% 3,438 3,256 6% Employee benefit expense 138 126 9% 130 6% 267 235 14% Depreciation and amortization expense 15 8 83% 10 40% 25 16 60% Other expenses 83 53 56% 79 6% 162 105 55% Provisions & write-offs -35-8 340% 47-174% 12 80-85% Total Expenses 1,956 1,806 8% 1,949 0% 3,905 3,691 6% Profit before tax 1,004 1,059-5% 923 9% 1,927 1,914 1% Tax expense: Current tax 268 273-2% 274-2% 542 514 6% Deferred Tax 70 85-17% 39 78% 110 140-22% Net Profit/(Loss) 666 701-5% 609 9% 1,275 1,260 1% Other Comprehensive Income 4 6-38% 0 3 2 48% Total Comprehensive Income 670 707-5% 609 10% 1,278 1,262 1% Note Other expenses pertaining to include, (a) Rs. 27.5 mn of fee paid to DSAs & KYC consultants. The same has been charged to P&L upfront ; not amortized. ( nil) (b) Rs. 11 mn of Sarfaesi charges. The same will be recovered from borrowers in the course of time. ( negligible) 19
Balance Sheet (Rs. million) As on Sep 30, 2018 As on Sep 30, 2017 EQUITY AND LIABILITIES: Shareholder's Funds 14,987 12,747 Share Capital 626 626 Reserves and Surplus 14,362 12,122 Non-Current Liabilities 63,275 55,124 Long-term borrowings 61,570 53,523 Deferred Tax Liabilities (Net) 885 794 Other long term liablities 103 83 Long term provisions 716 724 Current Liabilities 26,913 26,221 Short-term borrowings 12,597 11,490 Other current liabilities 14,178 14,570 Short-term provisions 138 162 Total 1,05,175 94,092 ASSETS: Non-current assets 96,798 86,311 Fixed assets Tangible assets 130 72 Intangible assets 19 16 Non-current investments 220 156 Long term loans and advances 96,408 86,044 Other non current assets 21 23 Current assets 8,378 7,781 Cash and Bank Balances 771 316 Short-term loans and advances 6,468 6,483 Other current assets 1,139 982 Total 1,05,175 94,092 20
Relative performance Q2FY19 Particulars Units Q2FY18 Q2FY19 Sanctions Rs. Mn 7,645 8,340 Disbursements Rs. Mn 7,525 7,766 Net interest income Rs. Mn 1,164 1,115 PAT Rs. Mn 701 666 NIM % 4.6 4.4 Yield on assets % 11.7 11.2 Cost of funds % 8.5 8.2 Spread % 3.2 3.0 Return on assets % 3.0 2.6 Return on equity % 23.5 19.4 21
Relative performance Particulars Units Sanctions Rs. Mn 13,842 15,920 Disbursements Rs. Mn 13,007 14,805 Net interest income Rs. Mn 2,220 2,258 PAT Rs. Mn 1,260 1,275 NIM % 4.9 4.5 Yield on assets % 12.0 11.3 Cost of funds % 8.6 8.2 Spread % 3.4 3.1 Return on assets % 2.8 2.5 Return on equity % 21.0 19.0 22
For any Investor Relations queries, please contact: Bala S, Investor Relations Phone: +91 44 42106650 Email: bala@repcohome.com 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. 23