Earnings Presentation www.repcohome.com
Agenda Performance Business summary.. Financial performance for Borrowing profile.... Geographic Presence Footprint... Region-wise loan book.. Annexure
Performance
Business Summary Loans outstanding (June 30, 2018) Rs. 1,00,745 mn Net worth (June 30, 2018) Rs. 13,184 mn Tier 1 capital adequacy ratio 23.24% (Provisional) Average loan per unit Rs. 1.4 mn Number of live accounts 84,741 Current Employee Strength 843 Gross NPA (%) (June 30, 2018) 3.96% Net NPA (%) (June 30, 2018) 2.39% Expected credit loss (%) (June 30, 2018) 0.66% 4
performance Figures in Rs million Income from operations Net Interest Income Profit after Tax 2,869 1,143 609 5% 8% 9% 2,739 1,056 560 Sanctions Disbursements Home loan book 7,580 7,039 82,362 22% 28% 14% 6,198 5,484 72,427 5
Asset book Figures in Rs million Sanctions and disbursements Loan Book 8,000 7,000 6,000 5,000 6,198 5,484 7,580 7,039 1,00,000 90,000 80,000 70,000 60,000 50,000 90,093 1,00,745 4,000 3,000 40,000 30,000 20,000 June'17 June'18 Sanctions Disbursements Loan book composition Mix of loan portfolio 100% 80% 60% 60.0% 57.3% 100% 80% 60% 19.6% 18.2% 40% 40% 80.4% 81.8% 20% 40.0% 42.7% 20% 0% June'17 June'18 0% June'17 June'18 Salaried Non Salaried Home loans Loans against property 6
Income and earnings growth Figures in Rs million Total income Net interest income 3,500 3,000 2,500 2,000 1,500 2,741 2,872 1,200 1,100 1,000 900 800 1,056 1,143 1,000 700 500 600-500 Net profit Net worth 620 600 580 560 540 560 609 14,000 13,000 12,000 11,000 10,000 9,000 8,000 11,373 13,184 520 7,000 500 6,000 5,000 June'17 June'18 7
Operating cost Figures in Rs million Employee cost Other opex 140 120 100 80 109 130 100 80 60 59 89 60 40 20 40 20 0 0 Cost to income ratio 20.0% 15.0% 15.1% 18.4% 10.0% 5.0% 0.0% 8
Profitability ratios Net interest margin Spread 4.8% 4.6% 4.4% 4.2% 4.0% 3.8% 3.6% 3.4% 3.2% 3.0% 4.7% 4.6% 3.4% 3.2% 3.0% 2.8% 2.6% 2.4% 2.2% 2.0% 3.3% 3.2% 25.0% 20.0% 15.0% Return on equity 17.4% 19.8% 3.0% 2.5% 2.0% 1.5% Return on assets 2.5% 2.5% 10.0% 1.0% 5.0% 0.5% 0.0% 0.0% 9
Asset quality & provisioning Figures in Rs million Gross NPA Net NPA 5,000 4,000 3,000 2,000 1,000-3.97% 3.96% 3,571 3,987 June'17 June'18 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 3,000 2,500 2,000 1,500 1,000 500-2.69% 2,396 June'17 2,371 2.39% June'18 2.90% 2.40% 1.90% 1.40% 0.90% 0.40% Gross NPA Gross NPA % Net NPA Net NPA % Provision coverage ratio 45.0% 40.0% 40.5% 35.0% 32.9% 30.0% 25.0% 20.0% June'17 June'18 10
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% 4.0% 3.7% 3.4% 2.9% 2.6% 2.4% 3.1% 2.2% 2.6% 1.9% 2.1% 2.4% 1.2% 1.3% 1.4% 1.3% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep'17 Dec'17 Mar'18 June'18 Gross NPA Net NPA 11
Mix/Product-wise GNPA (%) 6.0% 5.6% 5.4% 5.0% 4.0% 3.0% 4.1% 4.0% 2.9% 4.0% 2.0% 1.0% 0.0% 1.8% 1.5% 1.2% Salaried Non-Salaried Overall June'18 Mar'18 June'17 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 3.0% 2.4% 3.4% 6.8% 4.9% 6.4% 4.0% 2.9% Housing Loan LAP Overall June'18 Mar'18 June'17 4.0% 12
Diversified borrowing profile Source (Rs mn) National Housing Bank Average cost Jun'17 Jun'18 % change 7.6% 10,536 7,292-31% Repco Bank 8.1% 4,946 6,253 26% Commercial Banks 8.2% 45,089 53,321 18% NCDs 8.5% 11,570 12,370 7% 100% 80% 60% 40% 20% 0% 5% 5% 15% 15% 60% 64% 7% 8% 14% 9% Jun'17 Jun'18 CPs 7.9% 3,500 4,000 14% Total 8.2% 75,641 83,236 10% National Housing Bank Commercial Banks CPs Repco Bank NCDs *Weighted average cost 13
Geographic Presence
Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Jun'18 Footprint Presence in 11 states and 1 Union Territory with 140 branches and 23 satellite centers. Presence beyond South: branches in West Bengal, Orissa, Maharashtra, Gujarat, Network Expansion 170 Strong presence Significant presence 150 130 110 Recent expansion 90 Not present yet 70 54 50 30 72 88 92 122 142 150 156 160 163 15
Region-wise loan book Others, 2.8% Andhra Pradesh, 6.8% Telangana, 4.3% Tamil Nadu, 58.9% Exposure Gujarat, 2.6% Karnataka, 13.1% Kerala, 3.9% Maharashtra, 7.6% Annualized States June'18 Mar'18 June'17 YoY growth QoQ growth Andhra Pradesh 6.8% 6.8% 6.9% 10% 9% Telangana 4.3% 4.1% 3.8% 26% 27% Gujarat 2.6% 2.5% 2.2% 37% 37% Karnataka 13.1% 12.7% 12.2% 20% 23% Kerala 3.9% 4.0% 3.9% 13% 7% Maharashtra 7.6% 7.5% 6.7% 28% 20% Tamil Nadu 58.9% 59.8% 61.8% 7% 4% Others 2.8% 2.7% 2.5% 23% 20% Total 100% 100% 100% 12% 10% 16
Annexure
Shareholding pattern Outstanding shares 62.56 mn Bodies Corporat es, 1.5% Mutual Funds, 20.1% Resident Individua ls, 9.8% Foreign Portfolio Investors, 27.5% Major non-promoter shareholders % shareholding Aditya Birla Sun Life Mutual Fund 7.0% Franklin Templeton Mutual Fund 6.4% DSP Blackrock Small Cap Fund 6.2% Pabrai Investment Funds 5.9% India Capital Fund Limited 3.4% Apax Global Alpha Limited 2.1% HSBC Global Investment Funds 2.1% Alliance Bernstein India Growth (Mauritius) Limited 1.8% DSP Blackrock Core Fund 1.1% Promoter s, 37.1% NRIs, 1.2% Others, 2.8% 18
Profit and loss statement (Rs. million) IND AS Q1 FY19 IND AS Q1 FY18 YoY (%) IGAAP -Q4 FY18 IGAAP - FY18 Income: Revenue from operations 2,869 2,739 5% 2,832 11,054 Other income 3 2 24% 1 23 Total Income 2,872 2,741 5% 2,833 11,077 Expenses: Interest and other financial charges 1,684 1,630 3% 1,610 6,483 Employee benefit expense 130 109 19% 120 488 Depreciation and amortization expense 10 8 35% 8 31 Other expenses 79 52 53% 87 262 Provisions & write offs 47 88-47% 143 670 Total Expenses 1,949 1,885 3% 1,967 7,934 Profit before tax 923 855 8% 866 3,143 Tax expense: Current tax 274 240 14% 249 1,024 Deferred Tax 39 55-29% 51 58 Net profit/(loss) 609 560 9% 566 2,061 Other comprehensive income 0-4 -92% - - Total comprehensive income 609 556 9% 566 2,061 19
Relative performance Particulars Units Sanctions Rs. Mn 6,198 7,580 Disbursements Rs. Mn 5,484 7,039 Net interest income Rs. Mn 1056 1,143 PAT Rs. Mn 560 609 NIM % 4.7 4.6 Yield on assets % 12.0 11.4 Cost of funds % 8.7 8.2 Spread % 3.3 3.2 Return on assets % 2.5 2.5 Return on equity % 17.4 19.8 20
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. 21