Earnings Presentation Q4 www.repcohome.com
Agenda Q4 Performance Business summary.. Financial performance for Q4 Borrowing profile.... Geographic Presence Footprint... Region-wise loan book.. Annexure
Q4 & Performance
Business Summary Loans outstanding (Mar 31, 2018) Rs. 98,568 mn Net worth (Mar 31, 2018) Rs. 12,535 mn Tier 1 capital adequacy ratio 23.04% Average loan per unit Rs. 1.4 mn Number of live accounts 82,948 Current Employee Strength 785 Gross NPA (%) (Mar 31, 2018) 2.87% Net NPA (%) (Mar 31, 2018) 1.29% 4
Q4 Performance Figures in Rs million Income from operations Net Interest Income Profit after Tax Q4 2,832 1,164 566 4% 13% 12% Q4 2,735 1,029 506 Home Loans Sanctions Disbursements Q4 80,264 9,225 8,487 13% 32% 28% Q4 71,340 6,976 6,645 5
performance Figures in Rs million Income from Operations Net Interest Income Net Profit 11,054 4,286 2,061 6% 17% 13% 10,442 3,678 1,823 Loan Book Sanctions Disbursements 98,568 30,793 28,065 10% 7% 6% 89,399 28,758 26,424 6
Relative performance Q4 Particulars Units Q4 Q3 Q4 Sanctions Rs. Mn 6,976 7,725 9,225 Disbursements Rs. Mn 6,645 6,571 8,487 Net interest income Rs. Mn 1,029 1,071 1,164 PAT Rs. Mn 506 485 566 NIM % 4.7 4.6 4.8 Yield on assets % 12.1 11.5 11.5 Cost of funds % 8.7 8.3 8.0 Spread % 3.4 3.2 3.4 Cost to income ratio % 18.2 18.9 17.5 Return on assets % 2.3 2.1 2.3 Return on equity % 19.1 16.5 18.5 7
Asset book Figures in Rs million Sanctions and disbursements Loan Book 33,000 28,000 23,000 18,000 13,000 8,000 3,000 28,758 30,793 26,424 28,065 Sanctions Disbursements 1,00,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 89,399 Mar'17 98,568 Mar'18 Loan book composition Mix of loan portfolio 100% 80% 60% 60.2% 57.1% 100% 80% 60% 20.2% 18.6% 40% 40% 79.8% 81.4% 20% 39.8% 42.9% 20% 0% Mar'17 Mar'18 0% Mar'17 Mar'18 Salaried Non Salaried Home loans Loans against property 8
Income and earnings growth Figures in Rs million Total income Net interest income 12,000 10,000 8,000 10,459 11,077 4,500 4,000 3,500 3,000 3,678 4,286 6,000 2,500 4,000 2,000 2,000 1,500 1,000-500 Net profit Net worth 2,300 2,100 1,900 1,700 1,500 1,300 1,100 900 700 500 1,823 2,061 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 10,833 Mar'17 12,535 Mar'18 9
Operating cost Figures in Rs million Employee cost Other opex 600 500 400 431 488 350 300 250 245 293 300 200 100 200 150 100 50 0 0 Cost to income ratio 20.0% 16.9% 17.0% 15.0% 10.0% 5.0% 0.0% 10
Profitability ratios Net interest margin Spread 4.8% 4.6% 4.4% 4.2% 4.0% 4.4% 4.6% 3.4% 3.2% 3.0% 2.8% 3.1% 3.2% 3.8% 3.6% 3.4% 3.2% 2.6% 2.4% 2.2% 3.0% 2.0% Return on equity Return on assets 20.0% 18.2% 17.6% 2.5% 2.2% 2.2% 15.0% 2.0% 10.0% 1.5% 5.0% 1.0% 0.5% 0.0% 0.0% 11
Asset quality & provisioning Figures in Rs million Gross NPA Net NPA 3,000 2,500 2,000 1,500 1,000 500-2.60% 2.87% 2,827 2,328 Mar'17 Mar'18 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 1,400 1,200 1,000 800 600 400 200-1,227 1,255 1.39% 1.29% Mar'17 Mar'18 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% Gross NPA Gross NPA % Net NPA Net NPA % 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% Provision coverage ratio 55.6% 47.3% Mar'17 Mar'18 Note Rs. 340 Mn of loans outstanding backed by repossessed collateral assets is included in the aforementioned Mar 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 Q4. 12
Asset quality 90+ dpd(%) 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 4.2% 4.0% 3.4% 3.7% 2.9% 2.6% 2.4% 3.1% 2.2% 2.6% 1.3% 1.9% 2.1% 1.2% 1.3% 1.4% 1.3% 0.5% Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep'17 Dec'17 Mar'18 Gross NPA Net NPA 13
Mix/Product-wise GNPA (%) 6.0% 5.0% 4.0% 3.0% 4.1% 5.1% 3.4% 2.9% 3.7% 2.6% 2.0% 1.0% 0.0% 1.7% 1.2% 1.3% Salaried Non-Salaried Overall Mar'18 Dec'17 Mar'17 7.0% 6.0% 5.0% 4.0% 3.0% 2.4% 3.2% 2.3% 4.9% 5.9% 3.9% 2.9% 3.7% 2.6% 2.0% 1.0% 0.0% Housing Loan LAP Overall Mar'18 Dec'17 Mar'17 14
Diversified borrowing profile Source (Rs mn) Cost* Mar'17 Mar'18 % change National Housing Bank 7.6% 11,701 9,423-19% Repco Bank 8.2% 4,981 6,227 25% Commercial Banks 8.3% 47,572 44,350-7% NCDs 8.5% 7,850 13,370 70% CPs 7.9% 3,500 8,000 129% Total 8.18% 75,604 81,370 8% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 5% 10% 10% 16% 63% 55% 7% 8% 15% 12% Mar'17 Mar'18 National Housing Bank Repco Bank Commercial Banks NCDs CPs *Weighted average cost as on the Balance Sheet date 15
Geographic Presence
Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Footprint Presence in 11 states and 1 Union Territory with 131 branches and 29 satellite centers. Presence beyond South: branches in West Bengal, Orissa, Maharashtra, Gujarat, Madhya Pradesh and Jharkhand. Network Expansion 150 142 150 156 160 Strong presence Significant presence Recent expansion Not present yet 130 110 90 70 50 30 54 72 88 92 122 17
Region-wise loan book Others, 2.7% Tamil Nadu, 59.8% Andhra Pradesh, 6.8% Telangana, 4.1% Gujarat, 2.5% Karnataka, 12.7% Kerala, 4.0% Exposure Maharashtra, 7.5% Annualized States Mar'18 Dec'17 Mar'17 YoY growth QoQ growth Andhra Pradesh 6.8% 6.8% 7.0% 7% 14% Telangana 4.1% 4.0% 3.7% 24% 28% Gujarat 2.5% 2.4% 2.1% 30% 37% Karnataka 12.7% 12.2% 12.2% 14% 29% Kerala 4.0% 3.9% 3.8% 15% 17% Maharashtra 7.5% 7.2% 6.4% 29% 28% Tamil Nadu 59.8% 60.7% 62.2% 6% 9% Others 2.7% 2.6% 2.6% 13% 25% Total 100% 100% 100% 10% 15% 18
Annexure
Shareholding pattern Bodies Corporates, 1.9% Outstanding shares 62.56 mn Mutual Funds, 24.2% Resident Individuals, 10.0% Foreign Portfolio Investors, 23.1% % Major non-promoter shareholders shareholdin g Aditya Birla Sun Life Mutual Fund 7.2% Franklin Templeton Mutual Fund 7.2% DSP Blackrock Mutual Fund 6.2% India Capital Fund Limited 3.4% Parvest Equity India 1.2% HSBC Global Investment Funds - Asia Ex Japan 2.1% Alliance Bernstein India Growth (Mauritius) Limited 1.8% Apax Global Alpha Fund 2.1% Sundaram Mutual Fund 1.4% DSP Blackrock Core Fund 1.1% Promoters, 37.1% Others, 2.1% NRIs, 1.6% 20
Profit and loss statement (Rs. million) Q4 Q4 YoY (%) Income: Q3 QOQ (%) YoY (%) Revenue from operations 2,832 2,735 4% 2,775 2% 11,054 10,442 6% Other income 1 1-41% 1-35% 23 17 35% Expenses: Total Income 2,833 2,737 4% 2,776 2% 11,077 10,459 6% Interest and other financial charges 1,610 1,635-2% 1,623-1% 6,483 6,463 0% Employee benefit expense 120 129-7% 138-13% 488 431 13% Depreciation and amortization expense 8 11-31% 7 6% 31 36-13% Other expenses 87 60 45% 72 20% 262 209 26% Provision for non-performing assets -28 103-128% 189-115% 471 460 2% Contingency provisions against standard assets 21 13 55% 3 671% 42 53-22% Bad-debts written off 151 0 100% 2 158 5 Total Expenses 1,967 1,951 1% 2,035-3% 7,934 7,657 4% Profit before tax 866 786 10% 741 17% 3,143 2,802 12% Tax expense: Current tax 249 235 6% 260-4% 1,024 940 9% Deferred Tax 51 45 12% -3 58 39 48% Net Profit/(Loss) 566 506 12% 485 17% 2,061 1,823 13% Note Amount written-off in Q4 includes technically written-off accounts amounting to Rs. 148 mn (100% provided for) 21
Balance sheet (Rs. million) As on Mar 31, 2018 As on Mar 31, 2017 EQUITY AND LIABILITIES: Shareholder's Funds 13,283 11,372 Share Capital 626 626 Reserves and Surplus 12,657 10,747 Non-Current Liabilities 53,514 57,612 Long-term borrowings 50,901 55,316 Deferred Tax Liabilities (Net) 497 439 Other long term liablities 89 345 Long term provisions 2,027 1,511 Current Liabilities 32,950 21,445 Short-term borrowings 15,263 9,217 Other current liabilities 17,591 12,092 Short-term provisions 96 136 Total 99,747 90,429 ASSETS: Non-current assets 92,592 84,063 Fixed assets Tangible assets 123 71 Intangible assets 12 20 Non-current investments 156 156 Long term loans and advances 92,281 83,816 Other non current assets 21 0 Current assets 7,154 6,366 Cash and Bank Balances 259 225 Short-term loans and advances 6,378 5,724 Other current assets 517 417 Total 99,747 90,429 22
Key metrics and relative performance Particulars Units Outstanding Loan Book Rs. Mn 89,399 98,568 Sanctions Rs. Mn 28,758 30,793 Disbursements Rs. Mn 26,424 28,065 Net Interest Income Rs. Mn 3,678 4,286 PAT Rs. Mn 1,823 2,061 Yield on assets % 12.2 11.6 Cost of funds % 9.1 8.4 Spread % 3.1 3.2 Net interest margin % 4.4 4.6 Cost to income ratio % 16.9 17.0 Return on assets % 2.2 2.2 Return on equity % 18.2 17.6 23
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. 24