Repco Home Finance Limited Earnings Presentation Q3FY17 www.repcohome.com
Agenda Q3Y17 Performance Business summary.. Financial performance for Q3 & 9MFY17 Asset quality. Diversified source of funding...... Geographic Presence Expanding footprint... Region-wise loan book.. Annexure 2
Q3FY17 Performance
Business Summary Loans outstanding (Dec 31, 2016) Rs. 86,561 mn Net worth (Dec 31, 2016) Rs. 10,361 mn Average loan per unit Rs. 1.4 mn Number of live accounts 73,492 Current Employee Strength 641 Gross NPA (Dec 31, 2016) 2.6% Gross NPA (before regulatory forbearance) 4.2% Net NPA (%) (Dec 31, 2016) 1.5% Net NPA (before regulatory forbearance) 3.1% 4
Q3FY17 performance Figures in Rs million Income from Operations Net Interest Income Net Profit Q3FY17 2,642 907 464 17% 16% 20% Q3FY16 2,254 780 386 Loan Book Sanctions Disbursements Q3FY17 86,561 4,537 5,018 21% 28% 1 6% Q3FY16 71,544 6,290 5,974
9MFY17 performance Figures in Rs million Income from Operations Net Interest Income Net Profit 9MFY17 7,707 2,649 1,317 20% 21% 22% 9MFY16 6,410 2,183 1,079 Loan Book Sanctions Disbursements 9MFY17 86,561 21,782 19,779 21% 1% 1% 9MFY16 71,544 21,486 19,537
Loan book and customer mix Figures in Rs million Sanctions and disbursements Loan Book 18,000 21,486 21,782 19,537 19,779 90,000 80,000 70,000 71,544 86,561 13,000 60,000 8,000 50,000 40,000 3,000 9MFY16 Sanctions Disbursements 9MFY17 30,000 20,000 Dec'16 Dec'17 Loan book composition Mix of loan portfolio 100% 80% 60% 57.8% 60.0% 100% 80% 60% 19.0% 20.6% 40% 40% 81.0% 79.4% 20% 42.2% 40.0% 20% 0% Dec'16 Dec'17 0% Dec'16 Dec'17 Salaried Non Salaried Individual home loans Loans against property 7
Income and earnings growth Figures in Rs million Total Income Net interest income 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 6,420 7,722 3,000 2,500 2,000 1,500 1,000 500 2,183 2,649-9MFY16 9MFY17-9MFY16 9MFY17 Net profit Cost to income ratio 1,400 1,200 1,000 800 1,079 1,317 20.0% 15.0% 20.5% 16.4% 600 10.0% 400 200 5.0% - 9MFY16 9MFY17 0.0% 9MFY16 9MFY17 8
Profitability ratios Net interest margin Spread 5.0% 4.0% 4.4% 4.3% 3.5% 3.0% 2.5% 3.0% 3.0% 3.0% 2.0% 2.0% 1.0% 1.5% 1.0% 0.5% 0.0% 9MFY16 9MFY17 0.0% 9MFY16 9MFY17 Return on average net worth (TTM) Return on average assets (TTM) 20.0% 16.7% 18.1% 2.5% 2.3% 2.2% 15.0% 2.0% 10.0% 1.5% 1.0% 5.0% 0.5% 0.0% 9MFY16 9MFY17 0.0% 9MFY16 9MFY17 9
Asset quality & provisioning Figures in Rs Million Gross NPA Net NPA 2,500 2,000 1,500 1,000 500-2.29% 2.65% 2,291 1,639 Dec'15 Dec'16 Gross NPA Gross NPA % 4.00% 3.00% 2.00% 1.00% 0.00% 1,400 1,200 1,000 800 600 400 200-1,292 1.51% 962 1.36% Dec'15 Dec'16 Net NPA Net NPA % 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% Provision coverage ratio 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 41.3% Dec'15 43.6% Dec'16 10
Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Asset quality Movement in NPAs 3.5% 3.0% 2.6% 2.5% 2.5% 2.2% 2.3% 2.2% 2.4% 2.0% 2.0% 2.0% 1.8% 1.7% 1.5% 1.5% 1.3% 1.3% 1.6% 1.5% 1.0% 1.3% 1.3% 1.2% 0.9% 1.4% 1.2% 1.3% 0.5% 0.7% 0.8% 0.5% 0.5% 0.0% Gross NPA Net NPA 11
Mix/Product-wise asset quality Figures in Rs million 4.0% 3.6% 3.5% 3.0% 3.1% 3.0% 2.6% 2.5% 2.3% 2.4% 2.0% 1.5% 1.3% 1.3% 1.3% 1.0% 0.5% 0.0% Salaried Non-Salaried Overall Product / Mix GNPA Housing Loan 1,521 LAP 770 Overall 2,291 Salaried 440 Non-Salaried 1,851 Overall 2,291 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Dec'16 Dec'15 Sep'16 4.3% 3.6% 3.7% 2.6% 2.2% 2.3% 2.4% 2.0% 2.0% Housing Loan LAP Overall Dec'16 Dec'15 Sep'16 12
Mix/Product-wise asset quality (before regulatory forbearance) Figures in Rs million 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2.4% 1.3% 1.3% 5.5% 3.0% 3.1% 4.2% 2.3% 2.4% Salaried Non-Salaried Overall Product / Mix GNPA before regulatory forbearance Housing Loan 2,557 LAP 1,113 Overall 3,670 Salaried 814 Non-Salaried 2,856 Overall 3,670 7.0% 6.0% Dec'16 Dec'15 Sep'16 6.2% 5.0% 4.0% 3.7% 3.6% 3.7% 4.2% 3.0% 2.0% 1.0% 2.0% 2.0% 2.3% 2.4% 0.0% Housing Loan LAP Overall Dec'16 Dec'15 Sep'16 13
Diversified borrowing profile Source (Rs mn) Dec'15 Dec'16 Change National housing Bank 9,693 12,330 27% Repco Bank 4,979 4,905-1% Commercial Banks 38,318 46,302 21% NCDs 4,000 7,850 96% CPs 4,000 2,500-38% Total 60,991 73,887 21% 100% 80% 60% 40% 20% 0% 7% 3% 7% 11% 63% 63% 8% 7% 16% 17% Dec'15 National housing Bank Commercial Banks CPs Repco Bank NCDs Dec'16 14
Geographic Presence
Expanding footprint Presence in 11 states and 1 Union Territory with 121 branches and 32 satellite centres Presence beyond South: branches in West Bengal, Orissa, Maharashtra, Gujarat, Madhya Pradesh and Jharkhand 150 Network Expansion 142 150 153 130 122 Strong presence Significant presence Recent expansion 110 90 70 54 72 88 92 50 30 FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M FY17 16
Region-wise loan book Exposure Others, 2.4% Andhra Pradesh, 7.2% Telangana, 3.7% Gujarat, 2.2% Karnataka, 12.3% Key States Dec 15 Dec 16 Andhra Pradesh 8.0% 7.2% Telangana 3.4% 3.7% Gujarat 2.0% 2.2% Karnataka 12.5% 12.3% Kerala 3.7% 3.8% Tamil Nadu, 62.4% Kerala, 3.8% Maharastra, 6.1% Maharastra 5.6% 6.1% Tamil Nadu 62.5% 62.4% Others 2.3% 2.4% 100% 100% 17
Annexure
Shareholding pattern Bodies Corporate s, 3.40% Outstanding shares 62.56 mn Mutual Funds, 23.47% Promoters, 37.13% Individuals, 8.92% Foreign Portfolio Investors, 24.53% Others, 1.61% NRIs, 0.94% Major Non-Promoter Shareholders % shareholding Franklin Templeton Mutual Fund 6.4% Birla Sun Life AMC 6.1% DSP Blackrock Mutual Fund 5.6% Parvest Equity India 3.9% Nomura India Investment Fund 3.5% TVF Fund Ltd 2.6% India Capital Fund Limited 2.2% BNP Paribas Equity Fund 1.5% Alliance Bernstein (Mauritius) Limited 1.5% SBI Mutual Fund 1.1% 19
Profit and loss statement YoY (%) Q2 FY17 QOQ (%) 9M FY17 9M FY16 YoY (%) (Rs. million) Q3 FY17 Q3 FY16 Income: Revenue from operations 2,642 2,254 17% 2,596 2% 7707 6410 20% Other Income 13 1 1421% 1 939% 16 9 75% Total Income 2,656 2,255 18% 2,597 2% 7,722 6,420 20% Expenses: Interest and other Financial Charges 1,682 1,411 19% 1,597 5% 4828 4027 20% Employee benefit expense 104 96 9% 100 5% 302 315-4% Depreciation and amortization expense 8 9-15% 9-11% 24 29-17% Other expenses 51 56-8% 55-7% 149 146 2% Provision for Non-Performing Assets 88 65 34% 100-12% 358 184 94% Contingency Provisions against Standard Assets 7 27-75% 25-74% 40 68-41% Bad-Debts Written Off 2 0 100% 2-7% 5 1 893% Total Expenses 1,941 1,664 17% 1,887 3% 5,706 4,769 20% Profit before tax 714 591 21% 710 1% 2016 1651 22% Tax expense: Current tax 237 198 19% 244-3% 705 555 27% Deferred Tax 14 6 115% 9 53% -6 17-134% Net Profit/(Loss) 464 386 20% 457 2% 1,317 1,079 22% Note Other income includes Rs. 12 mn dividend received from Repco Micro Finance in Q3FY17 20
Key metrics Particulars Units 9MFY16 FY16 9MFY17 Outstanding Loan Book Rs. Mn 71,544 76,912 86,561 Sanctions Rs. Mn 21,486 30,828 21,782 Disbursements Rs. Mn 19,537 28,512 19,779 Income from Operations Rs. Mn 6,410 8,801 7,707 Net Interest Income Rs. Mn 2,183 3,039 2,649 PAT Rs. Mn 1,079 1,501 1,317 Networth Rs. Mn 8,892 9,162 10,361 Yield on assets % 12.6 12.4 12.2 Cost of funds % 9.6 9.4 9.2 Spread % 3.0 3.0 3.0 Gross NPA % 2.29 1.31 2.65 Net NPA % 1.36 0.48 1.51 Loan Book Composition: Non-Salaried % 42.2 58.8 60.0 Salaried % 57.8 41.2 40.0 Home Loans % 81.0 80.2 79.4 Loans against property % 19.0 19.8 20.6 Note Equity has been adjusted for DTA 21
Key metrics Particulars Units Q3FY16 Q2FY17 Q3FY17 Sanctions Rs. Mn 6,290 10,461 4,537 Disbursements Rs. Mn 5,974 8,764 5,018 Net Interest Income Rs. Mn 780 902 907 PAT Rs. Mn 386 457 464 NIM % 4.5 4.4 4.2 Yield on assets % 12.5 12.2 12.1 Cost of funds % 9.4 9.2 9.2 Spread % 3.1 3.0 2.9 ROAA % 2.2 2.2 2.2 ROAE % 17.1 18.8 18.7 22
For any Investor Relations queries, please contact: V. Raghu, Executive Director/ Bala, Investor Relations Phone: +91 44 42106650 Email: ed_vr@repcohome.com 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