Q2 FY16 Investor Update
Promoted by the LIC of India in 1989 IPO in1994, GDR in 2004 Listed on BSE, NSE & Luxembourg SE Shareholding Pattern- Sept 15 Profit making & dividend paying since 1990 Highest ratings (AAA) since 2002 More than 18 lakh customers serviced till date Market capitalization more than Rs. 24000 cr Total loan assets more Rs. 1,14,000 cr 97% of loan assets in retail category Cumulative Disbursements Rs.1.83 lakh cr since inception 2
A Journey of 26 Years 1989 1994 2002 2004 IPO 2009 2011 GDR Issue AAA Rating 2012 Crossed Rs. 1000 cr profit & Rs 75,000 Cr assets 2013 Crossed Rs. 50,000 Cr loan portfolio Crossed Rs. 500 crs profit 2015 Best HFC by CNBC TV 18 Construction Industry Award Best HFC by ABP 2014 News Crosses Rs 1 lakh cr in portfolio Best Housing Finance Co. by BFSI Awards Best data quality in HFC by CIBIL Incorporated 3
Executive Summary Q2/FY16 Q2 FY16 PAT at Rs 411.73 cr as against Rs 341.35 cr up 21% Q2 FY16 Revenue from operations up by 17% to Rs 3026 cr Outstanding Loan portfolio up by 17 % to Rs.114069 cr Individual Loan Portfolio up by 17% to Rs 111076 cr Q2FY16 Disbursements Rs 8390 cr against Rs 7196 cr up by 17% Net Interest Income Rs 717 cr up by 35% Net Interest Margins 2.56% for Q2 FY16 as against 2.23% for Q2FY15 Gross NPAs at 0.60% as against 0.63% as on 30.9.2014 Net NPAs 0.32% as against 0.33% on corresponding dates Individual Loans Gross NPAs 0.33 % down from 0.38% as on 30.9.2014 Total Provisions at Rs 779 cr as against total Gross NPAs of 683 cr 4
Update last 5 years Disbursement (Rs. Cr) CAGR 13% Loan Portfolio (Rs.cr) CAGR 21% Income (Rs. cr) CAGR 22% Profit After Tax (Rs. cr) CAGR 9% 5
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 6
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 *FY 2015 PAT before DTL considered 7
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 7 Regional Offices 16 Back Offices 234 Marketing Offices Rep offices in Dubai & Kuwait Coverage of more than 450 centres 1756 Employees 8
Distribution Network HOME LOAN AGENTS (HLAs) (Agents of LIC) 234 Marketing Offices DIRECT SALES AGENTS (DSAs) (Small Firms/Companies etc) CUSTOMER RELATIONS ASSOCIATES (CRAs) (Individual Agents) 37 branches of LICHFL Financial Services (100% subsidiary of LICHFL) 9
Origination Pattern 10
Average Ticket Size- Individual 11
Loan Book Composition Category O/s Portfolio % Var Individual (Including LAP) 111076 17% Developer 2992 25% Total 114068 17% 12
Individual Loans Portfolio Stats Pure Floating Rate Loans To Outstanding Portfolio (See Note below) As of FY 14 42%* As of FY15 37%* As of Q1FY16 31%* As of H1FY16 35%* Prepayment Lump Sum/ opening book For FY 14 9.3% For FY15 8.4% For Q1FY16 9.8% For H1FY16 11.0% Loan To Value Ratio On Incremental Sanctions For FY 14 54.52% For FY15 50.94% For Q1FY16 49.29% For H1FY16 48.09% Installment to Net Income Ratio On Incremental Sanctions For FY 14 34.72% For FY15 33.86% For Q1FY16 33.24% For H1FY16 32.16% *Excludes floating rate products like Advantage -5, Super 3, Super Choice, Bhagyalakshmi etc which are floating rate products with initial fixed rate 13
Executive Summary-Q1/FY16 Rs in Cr % Var Sep-15 Sep-14 % Var H1 FY16 H1 FY15 Q2FY16 Q2FY15 Income Individual 18% 2936.24 2491.84 18% 5765.34 4893.09 Project -14% 89.79 104.24-4% 178.09 185.58 Interest on Housing Loan 17% 3026.03 2596.08 17% 5943.43 5078.67 Processing Fees & other fees 23% 38.61 31.49 16% 67.09 58.03 Other Income -21% 24.72 31.12-32% 44.28 65.58 Gross Income 16% 3089.36 2658.69 16% 6054.80 5202.28 Interest Expense 12% 2309.09 2064.27 13% 4567.62 4040.63 Net Interest Income 35% 716.94 531.81 33% 1375.81 1038.04 Salary & Other Establishment Exp 10% 105.98 96.47 14% 189.53 166.38 Profit before Provisions & Taxation 35% 674.29 497.95 30% 1297.65 995.27 Provisions for NPA/Std Assets 30.58-15.68 74.61-3.01 Profit before Tax 25% 644.23 516.99 22% 1223.25 1005.15 Tax Expenses 32% 232.50 175.63 26% 429.39 341.48 Net Profit 21% 411.73 341.35 20% 793.86 663.66 14
Executive Summary-Q1/FY16 % Var Sep-15 Sep-14 % Var H1 FY16 H1 FY15 Disbursements Q2FY16 Q2FY15 Individual 13% 7944 7046 11% 13887 12521 Project 198% 445 150 167% 626 235 Total 17% 8390 7196 14% 14513 12756 Outstanding Portfolio Individual 17% 111077 95130 Project 25% 2992 2399 Total 17% 114069 97528 Outstanding Liabilities 15% 101640 88225 Net Interest margins(%) 2.56% 2.23% 2.47% 2.20% Borrowings during the period (Rs.cr) 10335 11554 Incremental Cost(i.e for the year to date) 8.92% 9.63% Incremental Yield(overall, annualised) 10.92% 10.92% Incremental Spreads 2.00% 1.29%
Financial Highlights H1 FY2016 H1FY 2015 Return on Average Equity (%) 19.3% 18.5% Return on Average Assets for qtr (%) 1.5% 1.4% Earnings per share (on Rs 2 pd up) 15.73 13.15 Capital Adequacy Ratio Tier I Tier II Total Sept 2015 12.46 3.04 15.51 Sept 2014 12.49 4.05 16.54 16
Liability Profile as on 30.9.2015 Source Wtd Avg Cost (%) Banks 10.29% Non Convertible Debenture 9.13% LIC- Term Loan 6.82% National Housing Bank 8.86% FCNRB Loans 9.28% Sub. Bonds & Upper Tier II 8.90% Commercial Paper 8.06% Deposits 9.24% Total 9.29% Outstanding Borrowings Rs.101640.32 cr During H1FY16, Borrowings were Rs 17748 cr @ 8.92% 17
Change in Liability Mix- last 5 yrs Bank Funding down from 32% in FY12 to 15% in Q2FY16 Bank funding has reduced from 32% in FY12 to 25% in FY14. Retail Deposits increased to 2.2% Wtd. Avg. cost of Funds 9.29% 9.38% 9.48 9.75% 9.76% 9.77% 18
NIMs 19
Yield & Cost of Funds on portfolio 20
Gross & Net NPAs 30.9.2015 30.9.201 4 Gross NPA (Rs. cr) 683 611 Gross NPA (%) 0.60% 0.63% Provisions for NPA (Rs. cr)* 314 294 Net NPA(%) 0.32% 0.33% Provisions incl teaser loan prov & std asset prov. 779 704 Provisions cover incl teaser loan prov & std asset prov. 114% 115% *Excluding provisions on standard assets/teaser loans 21
Gross & Net NPAs 22
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. 23