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Repco Home Finance Limited Earnings Presentation February 2019 www.repcohome.com Earnings Presentation Q3FY19

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Page 1: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

www.repcohome.com

Earnings Presentation

Q3FY19

Page 2: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Agenda

Q3FY19 Performance

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

► Financial performance for Q3FY19 ……………………………

► Borrowing profile………………..……………….………………….

Geographic Presence

► Footprint.………………………………………………..

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

Annexure

Page 3: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Q3FY19 Performance

Page 4: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

• Loans outstanding (Dec 31, 2019) Rs. 1,06,668 mn

• Net worth (Dec 31, 2019) Rs. 14,687 mn

• Tier 1 capital adequacy ratio 24.2% (Provisional)

• Average loan per unit Rs. 1.4 mn

• Number of live accounts 89,212

• Current Employee Strength 925

• Gross NPA (%) (Dec 31, 2019) 3.9%

• Expected credit loss (%) (Dec 31, 2019) 0.8%

Business Summary

4

Page 5: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Q3FY19 performance

4%

7,725

8,052

12%

6,571

7,332

31%

424

556

6% 23%

35,11358,715

12%

94,904

1,06,668

Sanctions Disbursements Profit after tax

TN & Pondicherry book Rest of India book Overall loan book

Figures in Rs million

Q3FY18

Q3FY19

Q3FY18

Q3FY19 43,02362,508

5

Page 6: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

9MFY19 performance

6%

8,324

8,815

4%

3,285

3,410

9%

1,684

1,831

11% 13%

19,57921,567

12%

94,904

1,06,668

Operating Income Net Interest Income Profit after Tax

Sanctions Disbursements Loan book

Figures in Rs million

9MFY18

9MFY19

9MFY18

9MFY19 22,13723,972

6

Page 7: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Trends in sanctions and disbursements

Figures in Rs million

7

4,403

5,243

6,290

4,537

7,7258,052

4,427 4,750

5,974

5,018

6,571

7,332

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Q3FY14 Q3FY15 Q3FY16 Q3FY17 Q3FY18 Q3FY19

Sanctions Disbursements

Business performance strong even amid sticky State specific factors and pervasive liquidity

crisis.

Page 8: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Asset book

Loan BookSanctions and disbursements

Mix of loan portfolioLoan book composition

Figures in Rs million

8

21,56723,972

19,57922,137

3,000

8,000

13,000

18,000

23,000

28,000

9MFY18 9MFY19

Sanctions Disbursements

94,904

1,06,668

20,000

40,000

60,000

80,000

1,00,000

Dec'17 Dec'18

40.8% 44.9%

59.2% 55.1%

0%

20%

40%

60%

80%

100%

Dec'17 Dec'18

Salaried Non Salaried

81.1% 81.6%

18.9% 18.4%

0%

20%

40%

60%

80%

100%

Dec'17 Dec'18

Home loans Loans against property

Page 9: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Net interest incomeTotal income

Net worthNet profit

Figures in Rs million

Income and earnings growth

9

8,351 8,871

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

9MFY18 9MFY19

3,285 3,410

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

9MFY18 9MFY19

1,684

1,831

500

700

900

1,100

1,300

1,500

1,700

1,900

9MFY18 9MFY19

11,448

14,687

5,000

7,000

9,000

11,000

13,000

15,000

17,000

Dec'17 Dec'18

Net worth

amount is per

IND AS and

provisional in

nature

Page 10: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Other opexEmployee cost

Cost to income ratio

Figures in Rs million

Operating cost

10

373

415

0

50

100

150

200

250

300

350

400

450

9MFY18 9MFY19

200

293

0

50

100

150

200

250

300

350

9MFY18 9MFY19

16.5%

19.7%

0.0%

5.0%

10.0%

15.0%

20.0%

9MFY18 9MFY19

Page 11: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Net interest margin

Return on equity Return on assets

Profitability ratios

11

Spread

4.7%

4.4%

3.0%

3.2%

3.4%

3.6%

3.8%

4.0%

4.2%

4.4%

4.6%

4.8%

9MFY18 9MFY19

3.3%

3.0%

2.0%

2.2%

2.4%

2.6%

2.8%

3.0%

3.2%

3.4%

9MFY18 9MFY19

2.4% 2.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

9MFY18 9MFY19

18.7% 18.7%

0.0%

5.0%

10.0%

15.0%

20.0%

9MFY18 9MFY19

Page 12: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Asset quality

90+ dpd(%)

12

4.2%

2.6%

4.0%

3.4%

3.7%

2.9%

4.0%

3.6%

3.9%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Dec-16 Mar-17 Jun-17 Sep'17 Dec'17 Mar'18 June'18 Sep'18 Dec'18

Gross NPA

Page 13: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Mix/Product-wise GNPA (%)

13

1.5%

5.8%

3.9%

1.4%

5.3%

3.6%

1.7%

5.1%

3.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Salaried Non-Salaried Overall

Dec'18 Sep'18 Dec'17

3.2%

6.8%

3.9%

2.9%

6.2%

3.6%3.2%

5.9%

3.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Housing Loan LAP Overall

Dec'18 Sep'18 Dec'17

Page 14: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Diversified borrowing profile

Source (Rs mn)Average

cost*Dec'17 Dec'18

%

change

National Housing Bank 7.5% 9,979 6,471 -35%

Repco Bank 8.2% 6,199 7,015 13%

Commercial Banks 8.6% 42,903 66,906 56%

NCDs 8.3% 14,370 8,870 -38%

CPs N.A 5,500 0 -100%

Total 8.5% 78,952 89,261 13%

Note –

1.The company has executed necessary documents with NHB earlier this month pertaining to the refinance line of Rs. 5,000 mnsanctioned by the latter during Q2FY19 and should be in a position to make a drawdown on the aforementioned line in Q4FY19.

2. *Weighted average cost as at the BS date.

14

13% 7%

8%8%

54%75%

18%

10%7%

0%

20%

40%

60%

80%

100%

Dec'17 Dec'18

National Housing Bank Repco Bank

Commercial Banks NCDs

CPs

Page 15: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Geographic Presence

Page 16: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Footprint

16

Significant presence

Strong presence

Recent expansion

Presence in 11 states and 1 Union Territory

with 143 branches and 24 satellite centers.

Presence beyond South: branches in West

Bengal, Orissa, Maharashtra, Gujarat and

Madhya Pradesh.

Network Expansion

Strong Presence

Significant Presence

Recent Expansion

Not present yet

Page 17: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Region-wise loan book

Annualized

Andhra Pradesh, 6.6%Telangana, 4.5%

Gujarat, 3.0%

Karnataka,

13.5%

Kerala, 3.8%

Maharashtra, 8.1%

Tamil Nadu,

57.6%

Others,

2.9%

7

Exposure

States Dec'18 Sep'18 Dec'17YoY growth

QoQgrowth

Andhra Pradesh 6.6% 6.7% 6.8% 9% 4%

Telangana 4.5% 4.4% 4.0% 27% 22%

Gujarat 3.0% 2.8% 2.4% 45% 42%

Karnataka 13.5% 13.3% 12.2% 24% 17%

Kerala 3.8% 3.8% 3.9% 7% 3%

Maharashtra 8.1% 7.8% 7.2% 25% 23%

Tamil Nadu 57.6% 58.4% 60.7% 6% 5%

Others 2.9% 2.6% 2.6% 24% 58%

Total 100% 100% 100% 12% 11%

Page 18: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Annexure

Page 19: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Shareholding pattern

Outstanding shares – 62.56 mn

19

Major non-promoter shareholders %

shareholding

Aditya Birla Mutual Fund 7.1%

Franklin Templeton Mutual Fund 6.8%

India Capital Fund Limited 5.5%

DSP Mutual Fund 5.0%

HDFC Mutual Fund 4.2%

Apax Global Fund 2.1%

Alliance Bernstein Holding 3.1%

DSP Core Fund 1.1%

Promoters,

37.1%

Mutual

Funds,

24.9%

Bodies

Corporate

s, 1.7%

Resident

Individuals,

10.4%

Foreign

Portfolio

Investors,

21.4%

NRIs, 1.6%

Others,

2.9%

Page 20: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Profit and loss statement

20

Particulars Q3FY19 Q3FY18YoY (%) Q2FY19 QOQ (%) 9MFY19 9MFY18 YoY (%)

Income:

Revenue from operations 3,037 2,743 11% 2,909 4% 8,815 8,324 6%

Other income 2 3 -39% 51 -97% 56 26 111%

Total Income 3,039 2,746 11% 2,960 3% 8,871 8,351 6%

Expenses:

Interest and other financial charges 1,848 1,621 14% 1,755 5% 5,286 4,877 8%

Employee benefit expense 147 138 7% 138 7% 415 373 11%

Depreciation and amortization expense 12 7 63% 15 -17% 37 23 61%

Other expenses 94 72 29% 83 12% 256 177 44%

Provisions & write-offs 182 265 -31% -35 -627% 194 345 -44%

Total Expenses 2,282 2,103 9% 1,956 17% 6,187 5,795 7%

Profit before tax 757 642 18% 1,004 -25% 2,684 2,556 5%

Tax expense:

Current tax 247 261 -5% 268 -8% 789 774 2%

Deferred Tax -46 -43 9% 70 -166% 63 98 -35%

Net Profit/(Loss) 556 424 31% 666 -16% 1,831 1,684 9%

Other Comprehensive Income 2 -1 -381% 4 -52% 5 2 206%

Total Comprehensive Income 558 423 32% 670 -17% 1,836 1,686 9%

Figures in Rs million

Page 21: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Relative performance – Q3FY19

21

Particulars Units Q3FY18 Q3FY19

Sanctions Rs. Mn 7,725 8,052

Disbursements Rs. Mn 6,571 7,332

Net interest income Rs. Mn 1,115 1,065

PAT Rs. Mn 424 556

NIM % 4.5 4.4

Yield on assets % 11.4 11.4

Cost of funds % 8.3 8.4

Spread % 3.2 3.0

Return on assets % 1.8 2.1

Return on equity % 13.9 15.4

Page 22: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

Relative performance – 9MFY19

22

Particulars Units 9MFY18 9MFY19

Sanctions Rs. Mn 21,567 23,972

Disbursements Rs. Mn 19,579 22,137

Net interest income Rs. Mn 3,285 3,410

PAT Rs. Mn 1,684 1,831

NIM % 4.7 4.4

Yield on assets % 11.8 11.3

Cost of funds % 8.5 8.3

Spread % 3.3 3.0

Return on assets % 2.4 2.4

Return on equity % 18.7 18.7

Page 23: Earnings Presentation Q3FY19 - Repco Home Earnings...Earnings Presentation February 2019 For any Investor Relations queries, please contact: This presentation may have certain statements

Repco Home Finance Limited

Earnings Presentation February 2019

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:

Bala S , Investor RelationsRepco Home Finance LimitedPhone: +91 44 42106650 Email: [email protected]

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