Q1 FY18 Investor Update
1994 1989 2002 2004 2009 IPO Incorporated 2011 AAA Rating 2012 GDR Issue A Journey of 28 Years Crossed Rs. 1000 cr profit & Rs 75,000 Cr assets 2013 Best HFC by CNBC TV 18 Construction Industry Award by CIBIL Crossed Rs. 50,000 Cr loan portfolio Crossed Rs. 500 crs profit Best HFC by ABP News 2014 2015 Crosses Rs 1 lakh cr in portfolio Best Housing Finance Co. by BFSI Awards Best data quality in HFC 2016 Business Today- Best CEO Award Business World -Most Respected Co Award Outlook Money- Best HFC Best HFC by ABP News Best Data Quality by CIBIL Asia Pacific Entrepreneurship Award Power Brands Awards by Franchise India 2017 Outlook Money- Best HFC Business Today 2 BFSI Best CEO
Executive Summary Q1/FY18 Q1 FY18 PAT at Rs 470.06 cr as against Rs 407.84 cr up 15 % Q1 FY18 Revenue from operations up by 8 % to Rs 3633 cr Outstanding Loan portfolio up by 15 % to Rs. 147051 cr Individual Loan Portfolio up by 14 % to Rs 141440 cr Q1FY18 Disbursements Rs 8699 cr against Rs 7542 cr up by 15 % Individual Loan Disbursements Rs 8286 cr against Rs 7064 cr, up by 17% Net Interest Income Rs 913 cr up by 11% Net Interest Margins 2.50 % for Q1 FY18 as against 2.61% for Q1FY17 Gross NPAs at 0.72% as against 0.59 % as on 30.6.2016 Net NPAs 0.38% as against 0.28% on corresponding dates Individual Loans Gross NPAs at 0.42% as against 0.35% on 30.6.2016 Total Provisions at Rs 1137 cr as against total Gross NPAs of 1066 cr 3
Update last 5 years Disbursement (Rs. Cr) CAGR 14% Loan Portfolio (Rs.cr) CAGR 17% Income (Rs. cr) CAGR 16% Profit After Tax (Rs. cr) CAGR 17% 4
Update last 5 years Gross & Net NPAs Total Provisions* (Rs cr) Operating Expense to Total Income Profit per employee (Rs. lacs) * Provisions Including Provisions on Std. Assets & Teaser Loans 5
Update last 5 years EPS (Rs) (Rs 2/- pd up) Book Value (Rs)(Rs 2/- pd up) Return on Avg Equity Return on Avg Loan Assets 6
Geographic Presence Mumbai Vashi Panjim Amritsar Ludhiana Ambala Bhatinda Hisar Patiala Karnal Hubli Bengaluru Mangalore Salem Kannur Thrissur Coimbatore Erode Kozhikode Tiruchirapalli Palghat Ernakulam Kottayam Thiruvananthapuram Kollam Jalandhar Bellary Tirupati Hosur Chennai Mysore Vellore Hassan Nagercoil Shimla Chandigarh Dehradun Noida Meerut Haldwani Pondicherry Thanjavur Madurai Tirumangalam Nellore Corporate office Regional offices Back offices Warangal Visakapatnam Hyderabad Rajahmundry Gulburga Vijayawada Kurnool Kakinada Anantapur Guntur Operating offices Gurgaon New Delhi Faridabad Ghaziabad Gangtok Bareilly Bikaner Siliguri Jaipur Agra Gorakhpur Jodhpur Kota Ajmer Lucknow Udaipur Malda Kanpur Patna Gwalior Varanasi Dhanbad Ahmedabad Behrampur Allahabad Ranchi Durgapur Gandhidham Bhopal Jamshedpur Kolkata Rajkot Vadodara Indore Jabalpur Rourkela Bilaspur Surat Jalgaon Nagpur Raipur Vapi Durg-Bhilai Cuttack Nallasopara Aurangabad Bhubaneshwar Nasik Kalyan Thane Jogeshwari Pune Kolhapur Satara Belgaum Jorhat Guwahati Silchar 9 Regional Offices 22 Back Offices 249 Marketing Offices Rep offices in Dubai & Kuwait Coverage of more than 450 centres 1890 Employees 7
Distribution Network HOME LOAN AGENTS (HLAs) (Agents of LIC) 249 Marketing Offices DIRECT SALES AGENTS (DSAs) (Small Firms/Companies etc) CUSTOMER RELATIONS ASSOCIATES (CRAs) (Individual Agents) 39 branches of LICHFL Financial Services (100% subsidiary of LICHFL) 8
Origination Pattern & Average Ticket Size 9
Loan Book Composition 31.03.2017 O/s Portfolio Rs. 144534 cr 30.06.2017 O/s Portfolio Rs. 147051 cr 10
Individual Loans Portfolio Stats Pure Floating Rate Loans To Outstanding Portfolio As of FY 15 37% As of FY16 47% As of FY17 70% As of Q1FY18 73% Prepayment Lump Sum/ opening book For FY 15 8.4% For FY16 11.9% For FY17 10.9% For Q1FY18 10.9% Loan To Value Ratio On Incremental Sanctions For FY 15 51% For FY16 47% For FY17 45% For Q1FY18 47% Installment to Net Income Ratio On Incremental Sanctions For FY 15 33.86% For FY16 33.25% For FY17 32.12% For Q1FY18 30.36% 11
Financial Highlights Q1 FY2018 Q1FY 2017 Return on Average Equity (%) 17% 18% Return on Average Assets (%) 1.3% 1.4% Earnings per share (on Rs 2 pd up) 9.31 8.08 Capital Adequacy Ratio Tier I Tier II Total March 2017 13.35 2.29 15.64 March 2016 13.86 3.18 17.04 12
Executive Summary-Q1/FY18 Var Q1FY18 Q1FY17 Interest Income on Individual Loans 7.25% 3444.92 3212.03 Interest Income on Project Loans 43.35% 163.85 114.30 Total 8.49% 3608.77 3326.33 Processing Fees & Other Fees (26.75%) 24.43 33.35 Other Income 6.00% 21.38 20.17 Gross Income 8.13% 3654.58 3379.85 Interest Expenses 7.77% 2696.25 2501.81 Net Interest Income 10.67% 912.52 824.52 Salary & Other Establishment Exp. (2.00%) 135.39 138.16 Net Provisions & Diminutions (10.30%) 104.46 116.46 Profit before Tax 15.25% 718.48 623.43 Income Tax Provision including Deferred Tax 15.23% 248.42 215.58 Net Profit 15.26% 470.06 407.84 13
Executive Summary-Q1/FY18 Var Q1FY18 Q1FY17 Disbursements Individual 17.29% 8286 7064 Project (13.48%) 413 478 Total 15.35% 8699 7542 Outstanding Portfolio Individual 14.36% 141440 123681 Project 49.41% 5611 3758 Total 15.39% 147051 127437 Net Interest Margins(%) 2.50% 2.61% Borrowings during the Qtr. (Rs. Cr.) 13620 9804 Incremental Cost(i.e. for the year to date) 7.68% 8.70% Incremental Yield(overall, annualised) 9.86% 10.68% Incremental Spreads 2.18% 1.98%
Liability Profile as on 30.6.2017 Source Wtd Avg Cost (%) Outstanding Borrowings Rs.129163 cr Banks 8.32% Non Convertible Debenture 8.57% National Housing Bank 8.35% FCNRB Loans 9.66% Sub. Bonds & Upper Tier II 9.18% Commercial Paper 6.50% Deposits 8.10% Total 8.50% During Q1FY18, Borrowings were Rs 13620 cr @ 7.68% 15
Change in Liability Mix- last 5 yrs Bank Funding down from 32% in FY12 to 8.9% in Q1FY18. Deposits have also increased in the same period Bank funding has reduced from 32% in FY12 to 25% in FY14. Retail Deposits increased to 2.2% Wtd. Avg. cost of Funds 8.50% 8.59% 9.14% 9.48% 9.75% 16
Yield & Cost of Funds on portfolio 17
NIMs 18
Gross & Net NPAs 30.6.2017 30.6.2016 Gross NPA (Rs. cr) 1066 757 Gross NPA (%) 0.72% 0.59% Provisions for NPA (Rs. cr)* 513 401 Net NPA(%) 0.38% 0.28% Provisions incl teaser loan prov & std asset prov. Provisions cover incl teaser loan prov & std asset prov. *Excluding provisions on standard assets/teaser loans 1137 935 107% 124% 19
Gross & Net NPAs 20
Thank you DISCLAIMER This presentation is made purely for information. We have attempted to provide relevant information which we believe will help in knowing the Company. The users may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. While every care is taken to verify the accuracy of the information given in this presentation, neither the Company nor its officials would in any way be liable for any action taken or not taken by the viewers or the users of this presentation or for any claims, losses etc. 21