RHFL Q1FY17 Earnings Presentation - Repco Home Q1FY17 Earning… · Repco Home Finance Limited Repco Home Finance Limited Earnings Presentation August 2016 Earnings Presentation Q1FY17

Repco Home Finance Limited

Repco Home Finance

Limited

Earnings Presentation August 2016

www.repcohome.com

Limited

Earnings Presentation

Q1FY17


Agenda

� Q1FY17 Performance

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

► Financial performance for Q1FY17…… ………………

► Asset quality……………………………………………………….

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


� Geographic Presence

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

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

� Annexure

2


Q1FY17 Performance



• Loans outstanding (June 30, 2016) Rs. 79,593 mn

• Net worth (June 30, 2016) Rs. 9,513 mn

• Average loan per unit Rs. 1.3 mn

• Number of live accounts 69,012

Business Summary


• Current Employee Strength 625

• Capital Adequacy Ratio 20.05% (Provisional)

• Gross NPA (%) (June 30, 2016) 2.2%

• Net NPA (%) (June 30, 2016) 1.2%

4


Growth story continues in Q1FY17

23%

2,468

27%

840

31%

395

Income from Operations Net Interest Income Net Profit

Figures in Rs million

Q1FY17


2,000 664 302

25%

63,442

79,593

3%

6,617

6,783

3%

5,801

5,997

Loan Book Sanctions Disbursements

Q1FY16

Q1FY16

Q1FY17


Steady growth in loan book with healthy customer mix

Loan BookLoan BookSanctions and disbursementsSanctions and disbursements


63,442

79,593

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

6,6176,783

5,8015,997

5,000

5,500

6,000

6,500

7,000


Mix of loan portfolioMix of loan portfolioLoan book compositionLoan book composition

6

-

Q1FY16 Q1FY17

5,000

Q1FY16 Q1FY17

Sanctions Disbursements

42.9% 40.9%

57.1% 59.1%

0%

20%

40%

60%

80%

100%

Q1FY16 Q1FY17

Salaried Non Salaried

81.0% 79.9%

19.0% 20.1%

0%

20%

40%

60%

80%

100%

Q1FY16 Q1FY17

Individual home loans Loans against property


Net interest incomeNet interest incomeTotal IncomeTotal Income


Income and earnings growth

2,001

2,469

500

1,000

1,500

2,000

2,500

3,000

664

840

100

200

300

400

500

600

700

800

900


Cost to income ratioCost to income ratioNet profitNet profit

7

-

Q1FY16 Q1FY17

-

100

Q1FY16 Q1FY17

302

395

-

50

100

150

200

250

300

350

400

450

Q1FY16 Q1FY17

21.1%

16.2%

0.0%

5.0%

10.0%

15.0%

20.0%

Q1FY16 Q1FY17


Net interest marginNet interest margin

And steady profitability ratios

SpreadSpread

4.3% 4.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2.9% 2.9%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%


Return on average net worth

(TTM)

Return on average net worth

(TTM)

Return on average assets

(TTM)

Return on average assets

(TTM)

8

0.0%

Q1FY16 Q1FY17

0.0%

Q1FY16 Q1FY17

16.4%18.1%

0.0%

5.0%

10.0%

15.0%

20.0%

Q1FY16 Q1FY17

2.3% 2.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Q1FY16 Q1FY17


Gross NPAGross NPA Net NPANet NPA

Asset quality & provisioning

Figures in Rs Million

1,406 1,770

2.22%2.22%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

-

500

1,000

1,500

2,000

810

959

1.29%1.22%

0.00%

0.50%

1.00%

1.50%

2.00%

-

200

400

600

800

1,000


Provision coverage ratioProvision coverage ratio

0.00%-

Q1FY16 Q1FY17

Gross NPA Gross NPA %

0.00%-

Q1FY16 Q1FY17

Net NPA Net NPA %

42.4%

45.8%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Q1FY16 Q1FY17


Stable asset quality

Movement in NPAsMovement in NPAs

2.2%

1.6%

2.0%

1.5%

2.5%

1.6%

2.0%

1.3%

2.2%

1.8%

2.3%

1.3%

2.2%

1.5%1.3%

1.6%

1.2%1.3% 1.4% 1.2%1.0%

1.5%

2.0%

2.5%

3.0%

3.5%


• Stable asset quality despite material changes in loan book composition and mix over the last 3 years.

10

0.9%0.7% 0.8%

1.2%

0.5%

0.9%

0.5%0.0%

0.5%

Gross NPA Net NPA


Mix/Product-wise asset quality

2.0%

3.3%

1.4%

2.9%

2.2%

1.2%

2.0%1.8%

1.3%

1.9%

3.7%

1.2%

2.9%

2.2%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%


1.4%1.2%

0.7%

1.3%1.2%

0.0%

0.5%

1.0%

1.5%

Ho

me

Lo

an

Ho

me

Eq

uity

Sa

larie

d

No

n-S

ala

rie

d

Ove

rall

June-15 March-16 June-16


Diversified borrowing profile

Source (Rs mn) Q1FY16 Q1FY17 Change

National housing Bank 10,320 13,540 31%

Repco Bank 4,885 4,844 -1%

Commercial Banks 36,834 42,812 16%

NCDs 1,000 4,000 300%

68% 63%

9%7%

2% 6%

2% 4%

20%

30%

40%

50%

60%

70%

80%

90%

100%


.

12

NCDs 1,000 4,000 300%

CPs 1,000 2,500 150%

Total 54,038 67,696 25%

19% 20%

0%

10%

20%

Q1FY16 Q1FY17

National Housing Bank Banks

Repco Bank Ltd NCDs

CPs


Geographic Presence



Expanding footprint

� Presence in 11 states and 1 Union Territory

with 120 branches and 31 satellite centres

� Presence beyond South: branches in West

Bengal, Orissa, Maharashtra, Gujarat,

Madhya Pradesh and Jharkhand

� Focus in FY17 will be to increase penetration

in existing regions.


Significant presence

Strong presence

Recent expansion

Network ExpansionNetwork Expansion

45 54

72

88 92

122

142 150 151

30

50

70

90

110

130

150


Region-wise loan book

Andhra

Pradesh,

7.5%

Telangana,

3.4%

Gujarat,

2.1%

Karnataka,

Others, 2.3%Exposure

Key States Q1FY16 Q1FY17

Andhra Pradesh &

Telangana 12.0% 11.0%

Gujarat 1.8% 2.1%

Karnataka 12.4% 12.4%

Earnings Presentation August 2016 15

Karnataka,

12.4%

Kerala, 3.8%

Maharastra,

5.8%

Tamil Nadu,

62.6%

Karnataka 12.4% 12.4%

Kerala 3.7% 3.8%

Maharashtra 5.4% 5.8%

Tamil Nadu 62.5% 62.6%

Others 2.2% 2.3%

Total 100.0% 100.0%


Annexure



Shareholding pattern

Outstanding shares – 62.54 mn

Mutual

Funds,

22.1%

Bodies

Corporates

, 2.6%Individuals,

9.8%NRIs, 1.1%

Foreign

Portfolio

Investors,

26.5%

Major Non-Promoter Shareholders % shareholding

Franklin Templeton Mutual - Indiaprima Fund 4.8%

Birla Sun Life Balanced 95 Fund 4.6%

SBI Magnum Multiplier Fund 4.5%

Parvest Equity India 3.8%

DSP Blackrock Micro Cap Fund 3.2%

Goldman Sachs India Fund Limited 2.6%

India Capital Fund Limited 2.5%

Nomura India Investment Fund Mother Fund 2.2%

TVF Fund Ltd 2.1%

Motilal Oswal Most Focused Midcap 30 Fund 1.5%


Promoters,

37.1%

22.1%26.5%

Others,

0.6%

Motilal Oswal Most Focused Midcap 30 Fund 1.5%

Alliance Bernstein India Growth (Mauritius) Limited 1.5%

Wasatch Emerging Markets Small Cap Fund 1.2%

BNP Paribas Equity Fund 1.1%

California Public Employees Retirement System, Sel 1.0%


Profit and loss statement

(Rs. million) Q1 FY17 Q1 FY16YoY (%) Q4 FY16 QOQ (%) FY16 FY15 YoY (%)

Income:

Revenue from operations 2,468 2,000 23% 2,400 3% 8807 6922 27%

Other Income 1 1 44% 3 -64% 12 8 41%

Total Income 2,469 2,001 23% 2,403 3% 8,818 6,930 27%

Expenses:

Interest and other Financial Charges 1,549 1,271 22% 1,456 6% 5483 4318 27%

Employee benefit expense 98 103 -5% 88 11% 409 335 22%

Depreciation and amortization expense 8 10 -22% 12 -34% 41 29 43%

Earnings Presentation August 2016 18

Depreciation and amortization expense 8 10 -22% 12 -34% 41 29 43%

Other expenses 43 40 5% 53 -19% 192 183 5%

Provision for Non-Performing Assets 170 102 66% 109 57% 293 140 108%

Contingency Provisions against Standard

Assets 8 11 -23% 28 -71% 95 62 55%

Bad-Debts Written Off 1 0 100% 3 -56% 3 1 157%

Provision for diminution in value of

Investments 0 0 0% 1 100% 1 0 100%

Total Expenses 1,878 1,538 22% 1,749 7% 6,518 5,068 29%

Profit before tax 592 463 28% 650 -9% 2301 1862 24%

Tax expense:

Current tax 225 169 33% 187 20% 742 559 33%

Deferred Tax -28 -8 260% 40 -170% 58 72 -19%

Net Profit 395 302 31% 422 -6% 1501 1231 22%


Key metrics

Particulars Units Q1FY16 Q4FY16 Q1FY17

Outstanding Loan Book Rs. Mn 63,442 76,912 79,593

Sanctions Rs. Mn 6,617 9,342 6,783

Disbursements Rs. Mn 5,801 8,975 5,997

Income from Operations Rs. Mn 2,000 2,400 2,468

Net Interest Income Rs. Mn 664 856 840

PAT Rs. Mn 302 422 395

Networth Rs. Mn 8,125 9,162 9,513

Yield on assets % 12.5% 12.2% 12.2%


Cost of funds % 9.7% 9.2% 9.3%

Spread % 2.9% 3.0% 2.9%

Gross NPA % 2.2% 1.3% 2.2%

Net NPA % 1.3% 0.5% 1.2%

Loan Book Composition:

Salaried % 42.9% 41.2% 40.9%

Non-Salaried % 57.1% 58.8% 59.1%

Home Loans % 81.0% 80.2% 79.9%

Loans against property % 19.0% 19.8% 20.1%


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

Safe Harbor:

V. Raghu, Executive Director/

Bala , Investor Relations


Phone: +91 44 42106650

Email: [email protected]

[email protected]


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

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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

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recipient’s organisation.

20

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RHFL Q1FY17 Earnings Presentation - Repco Home Q1FY17 Earning… · Repco Home Finance Limited Repco Home Finance Limited Earnings Presentation August 2016 Earnings Presentation Q1FY17