Earnings Presentation February 2016 - Repco Home Q3FY16 Earning… · Repco Bank Ltd Non Covertible Debuntures Commercial Papers . ... Earnings Presentation February 2016 For any

Repco Home Finance Limited

Earnings Presentation February 2016

www.repcohome.com

Earnings Presentation

February 2016



Agenda

Q3FY16 Performance

► Business summary…………………………………………….……..04

► Financial performance ………………………… …………….05-11

► Diversified source of funding…………..……………………..…..12

Geographic Presence

► Expanding footprint.………………………………………………..14

► Region-wise loan book.………………………………………….…15

Annexure

2



Q3FY16 & 9MFY16 Performance



• Loans outstanding (Dec 31, 2015) Rs. 71,544 mn

• Net worth (Dec 31, 2015) Rs. 9,245 mn

• Average loan per unit Rs. 1.3 mn

• Number of live accounts 64,303

• Current Employee Strength 606

• Capital Adequacy Ratio 24.0% (Provisional)

• Gross NPA (%) (Dec 31, 2015) 2.29%

• Net NPA (%) (Dec 31, 2015) 1.36%

Business Summary

4



Strong growth continues in 9MFY16

28%

5,015

6,420

28%

1,711

2,183

22%

883

1,079

30%

55,006

71,544

37%

15,643

21,486

37%

14,308

19,537

Total Income Net Interest Income Profit after Tax

Loan Book Sanctions Disbursements

Figures in Rs Million

9MFY15

9MFY16

9MFY15

9MFY16

5



On the back of robust Q3FY16

28%

1,757

2,225

33%

588

780

26%

307

386

30%

55,006

71,544

20%

5,243

6,290

26%

4,750

5,974

Total Income Net Interest Income Profit after Tax

Loan Book Sanctions Disbursements


Q3FY15

Q3FY16

Q3FY15

Q3FY16

6



Steady growth in loan book with healthy customer mix

Loan Book Sanctions and disbursements

Mix of loan portfolio Loan book composition

Figures in Rs million

7

15,643

21,486

14,308

19,537

3,000

8,000

13,000

18,000

9MFY15 9MFY16

Sanctions Disbursements

55,006

71,544

20,000

30,000

40,000

50,000

60,000

70,000

9MFY15 9MFY16

44.1% 42.2%

55.9% 57.8%

0%

20%

40%

60%

80%

100%

9MFY15 9MFY16

Salaried Non Salaried

80.7% 81.0%

19.3% 19.0%

0%

20%

40%

60%

80%

100%

9MFY15 9MFY16

Individual home loans Loans against property



Net interest income Income from operations

Cost to income ratio Net profit


Driving robust income and earnings growth

8

5,009

6,410

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

9MFY15 9MFY16

1,711

2,183

-

500

1,000

1,500

2,000

2,500

9MFY15 9MFY16

883

1,079

-

200

400

600

800

1,000

1,200

9MFY15 9MFY16

20.5% 20.5%

0.0%

5.0%

10.0%

15.0%

20.0%

9MFY15 9MFY16



Net interest margin

Return on average net worth (TTM) Return on assets (TTM)

And steady profitability ratios

9

Spread

4.5% 4.4%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

9MFY15 9MFY16

2.9% 3.0%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

9MFY15 9MFY16

16.2% 16.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

9MFY15 9MFY16

2.4% 2.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

9MFY15 9MFY16



Gross NPA Net NPA

Asset quality & provisioning

10

Provision coverage ratio


1,094

1,639

1.99% 2.29%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

-

500

1,000

1,500

Dec'14 Dec'15

Gross NPA Gross NPA %

634

962

1.16%

1.36%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

-

200

400

600

800

1,000

Dec'14 Dec'15

Net NPA Net NPA %

42.1% 41.3%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Dec'14 Dec'15



Sustainable improvement in asset quality

Movement in NPAs

• Owing to seasonality, Q1 & Q3 GNPAs are generally higher than Q2 & Q4 GNPAs.

11

2.9%

1.5%

2.2%

1.7%

2.0%

1.5%

2.5%

1.7%

2.0%

1.3%

2.2%

1.8%

2.3%

2.3%

1.0%

1.5%

0.9%

1.3%

0.7%

1.6%

0.8% 1.2%

0.5%

1.3%

0.9%

1.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Gross NPA Net NPA



Diversified source of funding

Sources of borrowing Sources (as on Dec 31, 2015) Amount

National housing Bank 9,693

Repco Bank 4,979

Commercial Banks 38,318

NCDs 4,000

CPs 4,000

Total 60,991


12

1. Commercial papers will offset Repco Bank borrowings to some extent 2. In a falling interest rate scenario, NCDs will dominate incremental borrowings

(constrained by approved NCD borrowing limits)

20% 16%

72% 63%

9%

8% 7% 7%

0%

20%

40%

60%

80%

100%

Dec'14 Dec'15

National Housing Bank Banks

Repco Bank Ltd Non Covertible Debuntures

Commercial Papers



Geographic Presence



Expanding footprint

14

Significant presence

Strong presence

Recent expansion

FY15 expansion

Presence in 11 states and 1 Union Territory

with 113 branches and 38 satellite

centres

Ventured into Jharkhand in FY15

Presence beyond South: branches in West

Bengal, Orissa, Maharashtra, Gujarat,

Madhya Pradesh and Jharkhand

Network Expansion

45 54

72

88 92

122

142 151

30

50

70

90

110

130

150



Region-wise loan book

15

Key States Dec’14 Dec’15

Andhra Pradesh 8.7% 8.0%

Telangana 3.5% 3.4%

Gujarat 1.2% 2.0%

Karnataka 12.0% 12.5%

Kerala 3.7% 3.7%

Maharastra 5.2% 5.6%

Tamil Nadu 63.5% 62.5%

Others 2.1% 2.2%

Andhra

Pradesh,

8.0%

Telangana,

3.4%

Gujarat,

2.0%

Karnataka,

12.5%

Kerala, 3.7%

Maharastra,

5.6%

Tamil Nadu,

62.5%

Others, 2.2%


Earnings Presentation February 2016 16

Annexure



Shareholding pattern

Outstanding shares – 62.36 mn Major Non-Promoter Shareholders %

shareholding

Franklin Templeton Indiaprima Fund 4.23%

Parvest Equity India 3.80%

Birla Sun Life 95 Fund 3.67%

SBI Magnum Multiplier Fund 3.63%

India Capital Fund Limited 2.89%

Goldman Sachs India Fund Limited 2.56%

Nomura India Mother Fund 2.18%

Smallcap World Fund, Inc 1.87%

TVF Fund Ltd 1.76%

DSP Blackrock Micro Cap Fund 1.53%

Wasatch Emerging Markets Small Cap Fund 1.33%

GMO Emerging Domestic Opportunities Fund 1.20%

ICICI Prudential Banking And Financial Services Fund 1.07%

California Public Employees Retirement System, Sel 1.03%

Alliance Bernstein India Growth (Mauritius) Limited 1.00%

17

Promoters,

37.15%

Mutual

Funds,

17.06%

Bodies

Corporate

s, 2.82%

Individuals

, 10.92%

Foreign

Portfolio

Investors,

30.16%

NRIs,

1.28%

Others,

0.61%



Profit and loss statement

(Rs. million) Q3 FY16 Q3 FY15 YoY

(%)

Q2

FY16

QOQ

(%)

9M

FY16 9M FY15

YoY

(%)

Income:

Revenue from operations 2,254 1,756 28% 2,156 5% 6410 5009 28%

Other Income 1 1 0 7 -88% 9 7 32%

Total Income 2,255 1,757 28% 2,164 4% 6,420 5,015 28%

Expenses:

Interest and other Financial Charges 1,411 1,120 26% 1,344 5% 4027 3150 28%

Employee benefit expense 96 88 9% 114 -12% 315 238 32%

Depreciation and amortization

expense 9 7 23% 10 -8% 29 20 47%

Other expenses 56 46 22% 51 0% 146 124 17%

Provision for Non-Performing Assets 65 17 292% 16 296% 184 107 72%

Contingency Provisions against

Standard Assets 27 10 181% 30 -11% 68 34 100%

Provision for diminution in value of

Investments 0 0 0% 0 0% 0 0 0%

Bad-Debts Written Off 0 0 0% 1 -100% 1 0 100%

Total Expenses 1,664 1,288 29% 1,567 6% 4,769 3,674 30%

Profit before tax 591 469 26% 597 -1% 1651 1342 23%

Tax expense:

Current tax 198 128 55% 188 6% 555 403 38%

Deferred Tax 7 34 -82% 19 -67% 17 56 -69%

Net Profit/(Loss) 386 307 26% 390 -1% 1079 883 22%



Key metrics

19

Particulars (YTD) Units Dec'15 Dec'14 Mar'15

Outstanding Loan Book Rs. Mn 71,544 55,006 60,129

Networth Rs. Mn 9,245 7,860 8,057

Borrowings Rs. Mn 60,991 46,237 51,044

Gearing x 6.6 5.9 6.3

Earnings per share Rs. 17.3 14.1 19.8

Book value per share Rs. 147.8 126.1 129.2

Yield on assets % 12.58% 12.76% 12.54%

Cost of funds % 9.58% 9.85% 9.59%

Spread % 2.99% 2.90% 2.95%

Gross NPA % 2.29% 1.99% 1.32%

Net NPA % 1.36% 1.16% 0.50%

Loan Book Composition:

Salaried % 42.2% 44.1% 43.2%

Non-Salaried % 57.8% 55.9% 56.8%

Home Loans % 81.0% 80.7% 80.8%

Loans against property % 19.0% 19.2% 19.2%



For any Investor Relations queries, please contact:

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.

Safe Harbor:

V. Raghu, Executive Director/

Bala , Investor Relations Repco Home Finance Limited Phone: +91 44 42106650 Email: [email protected] [email protected]

20

mailto:[email protected]

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Documents

Earnings Presentation February 2016 - Repco Home Q3FY16 Earning… · Repco Bank Ltd Non Covertible Debuntures Commercial Papers . ... Earnings Presentation February 2016 For any