Q1 FY19 Investor Update

1989

1994

2002

2004

2009

2011

2012

2013

Incorporated

IPO

AAA Rating

GDR Issue

Crossed Rs. 500 crs profit

Crossed Rs. 50,000 Cr loan portfolio

• Best HFC by CNBC TV 18

• Construction Industry Award

•Crossed Rs. 1000 cr profit &

Rs 75,000 Cr assets

20152014

• Best HFC by

ABP News

•Crosses Rs 1

lakh cr in portfolio

•Best Housing

Finance Co. by

BFSI Awards

• Best data quality

in HFC

by CIBIL

LICHFL: A Journey of 29 Years…

•Business Today-

Best CEO Award

• Business World -

Most Respected Co

Award

•Outlook Money-Best

HFC

•Best HFC by ABP

News

•Best Data Quality by

CIBIL

•Asia Pacific

Entrepreneurship

Award

•Power Brands

Awards by Franchise

India

2016

2017

•Crosses 150,000 cr in assets

•Outlook Money-Best HFC

•Business Today BFSI Best

CEO

•NSE for highest Debt

Issuance

2

3

Q1 FY19 PAT at Rs 567.94 cr as against Rs 479.65 cr up 18 %

Q1 FY19 Revenue from operations up by 11% to Rs 4019 cr

Outstanding Loan portfolio up by 15% to Rs. 168652cr

Individual Loan Portfolio up by 13% to Rs.160266 cr

Q1FY19 Disbursements Rs. 9594 cr against Rs. 8699cr a growth of 10%

Individual Loan Disbursements Rs.8704 cr against Rs.8286 cr

Net Interest Income Rs . 980.03 cr up by 6.60%

Net Interest Margins 2.34 % for Q1 FY19 as against 2.52 % for Q1FY18

Gross NPAs at 1.21% as against 0.72% as on 30.6.2017

Individual Loans Gross NPAs at 0.81%

Executive Summary – Q1/FY19

4

Disbursement (Rs. Cr) CAGR 18%

Profit After Tax (Rs. cr) CAGR 11%Income (Rs. cr) CAGR 13%

Loan Portfolio (Rs.cr) CAGR 16%

Update – last 5 years

2527130327

3615141541

49378

0

10000

20000

30000

40000

50000

2014 2015 2016 2017 2018

91341108361

125173144534

0

25000

50000

75000

100000

125000

150000

2014 2015 2016 2017 2018

933510799

12485 14080

0

5000

10000

15000

2014 2015 2016 2017 2018

1317 13861661 1931 1990

0

500

1000

1500

2000

2500

2014 2015 2015 2017 2018

166363

15073

5

Gross & Net NPAs

Operating Expense to Total Income

Total Provisions* (Rs cr)

Profit per employee (Rs. lacs)

* Provisions Including Provisions on Std. Assets

Update – last 5 years

0.67%

0.46% 0.45%0.43%

0.78%

0.39%

0.22% 0.22%0.14%

0.43%

0%

1%

2014 2015 2016 2017 2018

Gross

Net 707 704820

10381249

0

250

500

750

1000

1250

1500

2014 2014 2016 2017 2018

87.00 87.2996.23 105.34 94.62

0.00

50.00

100.00

2014 2015 2016 2017 2018

3.35% 3.46% 3.75%4.34% 4.30%

0%

5%

2014 2015 2016 2017 2018

6

EPS (Rs) (Rs 2/- pd up)

Return on Avg Equity

Book Value (Rs)(Rs 2/- pd up)

Return on Avg Loan Assets

Update – last 5 years

26.10 27.47 32.9138.26 39.42

0

10

20

30

40

50

2014 2015 2016 2017 2018

149.00 154.94 181.25219.49

251.49

0

100

200

300

2014 2015 2016 2017 2018

1.56% 1.39% 1.44% 1.43%1.30%

0%

1%

2%

2014 2015 2016 2017 2018

19.00% 18.00%20.00% 19.00%

17.00%

0%

10%

20%

2014 2015 2016 2017 2018

24 New Marketing Offices opened in FY 2019

• 9 Regional Offices

• 23 Back Offices

• 273 Marketing Offices

• Rep offices in Dubai & Kuwait

• Coverage of more than 450 centres

• 2068 Employees

Back offices

Operating offices

Regional offices

Corporate office

Nagercoil

ThiruvananthapuramKottayam

Ernakulam

Kozhikode

Thrissur

Tirumangalam

Madurai

Thanjavur

Pondicherry

Tiruchirapalli

Coimbatore

Salem

Vellore

ChennaiHosurMysore

Mangalore

Bengaluru

Panjim

Vashi

Mumbai

NelloreHubliTirupati

Bellary

Anantapur

Kurnool

Guntur

Kakinada

Vijayawada

Hyderabad Rajahmundry

Visakapatnam

Warangal

Bhubaneshwar

Kolkata

Silchar

Guwahati

Siliguri

Gangtok

Patna

ShimlaJalandharAmritsar

LudhianaChandigarh

Dehradun

HaldwaniKarnal

Bareilly

Ghaziabad

New Delhi

AgraLucknow

Kanpur

JaipurAjmer

Gwalior

Bikaner

Jodhpur

Rajkot

Udaipur

Ahmedabad

Vadodara Indore

Bhopal

Allahabad

Jabalpur

Varanasi

Ranchi

Jamshedpur

RourkelaBilaspur

RaipurNagpurJalgaonSurat

Vapi

AurangabadNasik

Kalyan

ThaneJogeshwari

Pune

Kolhapur

Belgaum

Gulburga

Nallasopara

Kota

Hassan

Erode

Kannur

Kollam

Palghat

Gandhidham

Satara

Durg-Bhilai

Gorakhpur

Meerut

Behrampur

Cuttack

Dhanbad

Durgapur

Jorhat

Malda

GurgaonFaridabad

Noida

AmbalaBhatinda

HisarPatiala

Large geographic presence

Year No of

Marketing

Offices

No of Back

offices

No of

Regional

Offices

No of

Employees

Lon

Portfolio

Rs cr

2003 105 - 6 870 7772

2008 125 14 6 985 21936

2013 194 16 7 1446 77812

2018 249 23 9 2103 166363

Widening footprint…improved efficiencies

7

HOME LOAN AGENTS (HLAs)

(Agents of LIC)

DIRECT SALES AGENTS (DSAs)

(Small Firms/Companies etc)

CUSTOMER RELATIONS

ASSOCIATES (CRAs)

(Individual Agents of the Company)

273Marketing Offices

49 branches of

LICHFL Financial Services(100% subsidiary of LICHFL)

Distribution Network

Total No of Agents > :

growth of 12% y-o-y

8

87%

13%

Customer Type

Salaried Self Employed

65%

17%

7%5%

6%

Originations by source

HLA DSA CRA DIRECT LICHFLFSL

46%85

Offices

54%188

Offices

Top 7 cities & Others

Top 7 cities Others

9

Origination Pattern &

Average Ticket Size

₹ 18.0

₹ 19.0

₹ 20.0

₹ 21.0

₹ 22.0

₹ 23.0

₹ 24.0

Q1 FY18 Q1 FY19

Incremental Ticket Size(Rs. lacs)

10

Loan Book Composition

30.6.201730.06.2018

Retail Home Loans

79%

Retail LAP/ LRD/etc

16%

Developer Loans

5%

O/s Portfolio Rs.168652 cr O/s Portfolio Rs. 147051 cr

11

Installment to Net Income RatioOn Incremental Sanctions

For FY 16 33.25%

For FY17 32.12%

For FY18 31.00%

For Q1FY19 31.71%

Loan To Value RatioOn Incremental Sanctions

For FY 16 47%

For FY17 45%

For FY18 44%

For Q1FY19 46%

Pure Floating Rate LoansTo Outstanding Portfolio

As of FY 16 47%

As of FY17 70%

As of FY18 74%

As of Q1FY19 83%

PrepaymentLump Sum/ opening book

For FY 16 11.9%

For FY17 10.9%

For FY18 11.0%

For Q1FY19 10.7%

Individual Loans – Portfolio Stats

12

Housing Finance regulator National Housing Bank has directed HFC’s to

comply with provisions of IND AS as notified by the Ministry of Corporate

Affairs(MCA) with effect from April 1, 2018.

In line with the above directions, results of Q1 FY 18-19 of LICHFL are

prepared and published complying with IND AS provisions. Additionally

figures of Q1 FY 17-18 have been restated as per IND AS.

IND AS Transition

13

Key Impacts due to IND AS

Existing Indian GAAP IND AS

Effective Interest rate Loan Processing fees are

recognized upfront in P&L

and Cost related to Loans

are debited in P&L .

Under IND AS these fees

will be amortized over the

life of the loan using

Effective Interest Rate

method.

Asset Classification &

Provisioning

Rule-based, incurred loss

model

Expected Credit Loss

(ECL) model based on

expected future credit

losses

Interest Income on NPA The RBI guidelines require

interest income on NPA to

be recognized on

realization basis.

Under IND AS 109,

interest income is

generally recognized

depending on the stage in

which the loan is.

Investment in Mutual

Fund, G-Secs. & Debt

Securities

Accounted at cost and

provision for diminution

charged to P&L

Accounted at fair value

through P&L

14

Executive Summary-Q1/FY19

Var Q1FY19 Q1FY18

Interest Income on Individual Loans 8.15% 3722.76 3442.24

Interest Income on Project Loans 60.94% 282.20 175.35

Total 10.71% 4004.96 3617.59

Other Income 49.60% 32.00 21.39

Gross Income 11.03% 4050.95 3648.24

Interest Expenses 12.11% 3024.93 2698.22

Net Interest Income 6.60% 980.03 919.37

Salary & Other Establishment Exp. (16.59%) 74.24 89.01

Provisions for Expected Credit Loss (21.18%) 160.75 203.97

Profit before Tax 20.44% 788.40 654.59

Income Tax Provision including Deferred Tax 26.02% 220.46 174.94

Net Profit 18.41% 567.94 479.65

Executive Summary-Q1/FY19

Var Q1FY19 Q1FY18

Disbursements 10% 9594 8699

Outstanding Portfolio

Individual 13% 160265 141440

Project 49% 8387 5611

Total 15% 168652 147051

Net Interest Margins(%) 2.34% 2.52%

Borrowings during the Qtr. (Rs. Cr.) 47% 20011 13620

Weighted average cost of funds 8.29% 8.50%

Yield on advances annualised 10.19% 10.58%

Spreads 1.90% 2.08%

16

PAT Reconciliation

Particulars Q1 FY18

(INR Crore)

Net Profit as per IGAAP 470.06

Add / (Less) : Adjustments as per IND AS on account of:

Adjustment on account of Effective Interest Rate (EIR) on financial assets and

liabilities recognized at amortized cost /net interest on credit impaired loans

23.14

Adjustment on account of Expected Credit Loss(ECL) (65.07)

Reversal of Deferred Tax liability (DTL) on 36(1)(viii) for the quarter 51.37

Other Adjustments 0.15

Net Profit after Tax as per IND As 479.65

Other Comprehensive Income (Net of Tax) (0.47)

Total Comprehensive Income (Net of Tax as per Ind AS) 479.18

17

Q1 FY2019 Q1FY 2018

Return on Average Equity (%) 18% 17%

Return on Average Assets (%) 1.4% 1.3%

Earnings per share (on Rs 2 pd up) 11.25 9.50

Capital Adequacy Ratio

Tier I

Tier II

Total

March 2018

13.06

2.43

15.49

March 2017

13.35

2.29

15.64

Financial Highlights

18

Outstanding Borrowings – Rs.147735 cr

Source Wtd

Avg

Cost

(%)

Banks 8.25%

Non Convertible Debenture 8.37%

National Housing Bank 8.13%

Sub. Bonds & Upper Tier II 9.18%

Commercial Paper 7.53%

Deposits 7.90%

Total 8.29%

as on 30.6.2018

Liability Profile

During Q1FY19, Borrowings were Rs. 20011 cr @ 7.89%

Bank & Others11.5%

NCD74.25%

SUB DEBT & UPPER TIER II

1.70%

Deposits4.70%

NHB1.25% CP

6.60%

19

Change in Liability Mix- last 5 yrs

Wtd. Avg. cost

of Funds

Bank funding has

reduced from

32% in FY12 to

25% in FY14.

Retail Deposits

increased to 2.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 FY19 FY18 FY17 FY16 FY15

Others

Deposit

NHB

Bank

NCD

8.29% 8.31% 8.59% 9.14% 9.48%

20

Yield & Cost of Funds on portfolio

Q1 FY18 Q1 FY19

Yield on Advances onPortfolio

10.58% 10.19%

Wtd Avg cost of funds onTotal Borrowed Funds

8.50% 8.29%

NIMs 2.52% 2.34%

10.58%10.19%

8.50% 8.29%

2.52%

2.34%

2.00%

2.10%

2.20%

2.30%

2.40%

2.50%

2.60%

2.70%

2.80%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

21

NIMs

2.19%

2.41%

2.61%

2.52%

2.34%

2.00%

2.50%

3.00%

Q1

FY

15

Q1

FY

16

Q1

FY

17

Q1

FY

18

Q1

FY

19

22

Classification of Assets

Exposure At Default % June-18 June-17Stage 1 94.96% 95.69%Stage 2 3.83% 3.59%Stage 3 1.21% 0.72%

Total 100% 100%

ECL Provision June-18 June-17Stage 1 Rs. 189.92 cr Rs. 142.67 crStage 2 Rs. 73.99 cr Rs. 78.15 crStage 3 Rs. 652.43 cr Rs. 493.69 cr

23

DISCLAIMER

This presentation is made purely for information. We have attempted to provide relevantinformation which we believe will help in knowing the Company. The users may use their ownjudgment and are advised to make their own calculations before deciding on any matter basedon the information given herein.

While every care is taken to verify the accuracy of the information given in this presentation,neither the Company nor its officials would in any way be liable for any action taken or nottaken by the viewers or the users of this presentation or for any claims, losses etc.

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