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Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May...

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Repco Home Finance Limited Earnings Presentation May 2016 www.repcohome.com Earnings Presentation Q4 & FY16
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Page 1: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

www.repcohome.com

Earnings Presentation

Q4 & FY16

Page 2: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Agenda

Q4 & FY16 Performance

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

► Financial performance for Q4 and FY16…… ………………

► Asset quality……………………………………………………….

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

Geographic Presence

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

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

Annexure

2

Page 3: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Q4FY16 and FY16 Performance

Page 4: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

• Loans outstanding (Mar 31, 2016) Rs. 76,912 mn

• Net worth (Mar 31, 2016) Rs. 9,512 mn*

• Average loan per unit Rs. 1.3 mn

• Number of live accounts 67,242

• Current Employee Strength 619

• Capital Adequacy Ratio 20.74% (Provisional)

• Gross NPA (%) (Mar 31, 2016) 1.3%

• Net NPA (%) (Mar 31, 2016) 0.5%

Business Summary

4

Net worth = Paid up capital + Reserves – Intangible assets. However, NHB has started advising HFCs

to exclude Deferred Tax Assets from the calculation, in which case the Net Worth will be Rs. 9,162

mn (FY15 – Rs. 7,838 mn). This is used for all ratios involving net worth, - including CAR.

Page 5: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Growth story continued in FY16

27%

6,922

8,801

28%

2,373

3,039

22%

1,231

1,501

28%

60,129

76,912

29%

23,989

30,828

31%

21,812

28,512

Income from Operations Net Interest Income Profit after Tax

Loan Book Sanctions Disbursements

Figures in Rs Million

FY15

FY16

FY15

FY16

5

Page 6: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Driven by strong Q4 FY16

25%

1,913

2,400

29%

662

856

21%

348

422

25%

1,915

2,403

12%

8,346

9,342

20%

7,505

8,975

Income from Operations Net Interest Income Profit after Tax

Total Income Sanctions Disbursements

Figures in Rs Million

Q4 FY15

Q4 FY16

Q4 FY15

Q4 FY16

6

Page 7: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

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

18,225

23,989

30,828

17,153

21,812

28,512

5,000

10,000

15,000

20,000

25,000

30,000

FY14 FY15 FY16

Sanctions Disbursements

46,619

60,129

76,912

20,000

30,000

40,000

50,000

60,000

70,000

FY14 FY15 FY16

45.0% 43.2% 41.2%

55.0% 56.8% 58.8%

0%

20%

40%

60%

80%

100%

FY14 FY15 FY16

Salaried Non Salaried

81.3% 80.8% 80.2%

18.7% 19.2% 19.8%

0%

20%

40%

60%

80%

100%

FY14 FY15 FY16

Individual home loans Loans against property

Page 8: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Net interest income Income from operations

Cost to income ratio Net profit

Figures in Rs million

Driving robust income and earnings growth

8

5,342

6,922

8,801

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

FY14 FY15 FY16

1,908

2,373

3,039

-

500

1,000

1,500

2,000

2,500

3,000

3,500

FY14 FY15 FY16

1,101 1,231

1,501

-

200

400

600

800

1,000

1,200

1,400

1,600

FY14 FY15 FY16

18.4%

21.0% 19.3%

0.0%

5.0%

10.0%

15.0%

20.0%

FY14 FY15 FY16

Page 9: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Net interest margin

Return on average net worth Return on assets

And steady profitability ratios

9

Spread

4.7% 4.5% 4.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

FY14 FY15 FY16

16.4% 16.1% 17.7%

0.0%

5.0%

10.0%

15.0%

20.0%

FY14 FY15 FY16

2.7%

2.3% 2.2%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

FY14 FY15 FY16

3.2%

2.9% 3.0%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

FY14 FY15 FY16

Page 10: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Gross NPA Net NPA

Asset quality & provisioning

10

Provision coverage ratio

Figures in Rs Million

686 791

1,009

1.47% 1.32% 1.31%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

-

200

400

600

800

1,000

1,200

FY14 FY15 FY16

Gross NPA Gross NPA %

332

298

368 0.72%

0.50%

0.48%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

-

100

200

300

400

500

FY14 FY15 FY16

Net NPA Net NPA %

51.5%

62.4% 63.5%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

FY14 FY15 FY16

Page 11: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Stable asset quality

Movement in NPAs

• Stable asset quality despite material changes in loan book composition over the last 3 years; increased

exposure to LAP and non-salaried segment in pursuit of better margins, resulting in technical spikes in asset

quality

11

1.5%

2.2%

1.6%

2.0%

1.5%

2.2%

1.6%

2.0%

1.3%

2.2%

1.8%

2.3%

1.3%

1.0%

1.5%

0.9%

1.3%

0.7%

1.5%

0.8%

1.2%

0.5%

1.3%

0.9%

1.4%

0.5% 0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Gross NPA Net NPA

Page 12: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Mix/Product-wise asset quality

12

1.2% 1.1%

2.0%

0.8% 0.7%

1.7%

1.8%

1.5% 1.3%

2.3%

1.3%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Mar-14 Mar-15 Dec'15 Mar'16

Housing Loan Home Equity Salaried Non-Salaried Overall

Page 13: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Diversified borrowing profile

.

Source (Rs mn) Mar'15 Mar'16

National housing Bank 10,948 9,109

Repco Bank 4,014 4,963

Commercial Banks 34,482 47,307

NCDs 1,000 4,000

CPs 600 0

Total 51,044 65,379

13

CPs were used to manage intra-quarter liquidity requirements in Q4FY16.

21% 14%

68%

72%

8% 8%

2% 6% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mar'15 Mar'16

National Housing Bank Banks Repco Bank Ltd NCDs CPs

Page 14: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Geographic Presence

Page 15: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Expanding footprint

15

Significant presence

Strong presence

Recent expansion

Presence in 11 states and 1 Union Territory

with 115 branches and 35 satellite centres

Presence beyond South: branches in West

Bengal, Orissa, Maharashtra, Gujarat,

Madhya Pradesh and Jharkhand

Focus in FY16 was to increase penetration in

existing regions, which the company was

able to achieve

Network Expansion

36 45

54

72

88 92

122

142 150

30

50

70

90

110

130

150

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Page 16: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Region-wise loan book

16

Exposure

Key States FY15 FY16 Andhra Pradesh & Telangana 12.2% 11.2%

Gujarat 1.5% 2.0%

Karnataka 12.2% 12.3%

Kerala 3.7% 3.8%

Maharastra 5.3% 5.7%

Tamil Nadu 62.9% 62.7%

Andhra

Pradesh,

7.7% Telangana,

3.4%

Gujarat,

2.0%

Karnataka,

12.3%

Kerala,

3.8%

Maharastra

, 5.7%

Tamil

Nadu,

62.7%

Others,

2.3%

Page 17: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Annexure

Page 18: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Shareholding pattern

Outstanding shares – 62.54 mn

18

Promoters,

37.14%

Mutual

Funds,

18.80%

Bodies

Corporates

, 2.80% Individuals,

10.85%

Foreign

Portfolio

Investors,

28.42%

NRIs, 1.25%

Others,

0.74%

Major Non-Promoter Shareholders %

shareholding

Franklin Templeton Indiaprima Fund 4.3%

Birla Sun Life Balanced 95 Fund 4.0%

SBI Magnum Multiplier Fund 3.9%

Parvest Equity India 3.8%

India Capital Fund Limited 2.7%

Goldman Sachs India Fund Limited 2.6%

DSP Blackrock Micro Cap Fund 2.5%

Nomura India Investment Mother Fund 2.2%

TVF Fund Ltd 2.1%

GMO Emerging Domestic Opportunities Fund 1.2%

Wasatch Emerging Markets Small Cap Fund 1.2%

California Public Employees Retirement System 1.0%

Page 19: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Profit and loss statement

19

(Rs. million) Q4 FY16 Q4 FY15 YoY (%) Q3 FY16 QOQ

(%) FY16 FY15 YoY (%)

Income:

Revenue from operations 2,400 1,913 25% 2,253 6% 8807 6922 27%

Other Income 3 1 85% 1 198% 12 8 41%

Total Income 2,403 1,915 25% 2,255 6% 8,818 6,930 27%

Expenses:

Interest and other Financial Charges 1,456 1,168 25% 1,410 3% 5483 4318 27%

Employee benefit expense 88 105 -16% 102 -14% 409 335 22%

Depreciation and amortization expense 12 10 27% 9 37% 41 29 43%

Other expenses 53 50 6% 50 6% 192 183 5%

Provision for Non-Performing Assets 109 33 227% 65 66% 293 140 108% Contingency Provisions against Standard Assets 28 28 0% 27 4% 95 62 55%

Bad-Debts Written Off 3 1 159% 0 100% 3 1 157% Provision for diminution in value of

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

Total Expenses 1,749 1,395 25% 1,663 5% 6,518 5,068 29%

Profit before tax 650 520 25% 591 10% 2301 1862 24%

Tax expense:

Current tax 187 156 20% 198 -6% 742 559 33%

Deferred Tax 40 16 150% 7 520% 58 72 -19%

Net Profit 422 348 21% 386 9% 1501 1231 22%

Page 20: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Balance sheet

20

(Rs. million) As on Mar 31, 2016 As on Mar 31, 2015 EQUITY AND LIABILITIES: Shareholder's Funds 9,548 8,121 Share Capital 625 624 Reserves and Surplus 8,923 7,497

Non-Current Liabilities 51,676 39,902 Long-term borrowings 50,252 38,797 Deferred Tax Liability 400 342 Long term provisions 1,024 762 Current Liabilities 16,408 12,734 Short-term borrowings 4,970 4,848 Other current liabilities 11,244 7,750

Short-term provisions 194 136

Total 77,632 60,757 ASSETS: Non-current assets 72,247 56,488 Fixed assets

Tangible assets 72 70 Intangible assets 21 19 Non-current investments 124 124 Long term loans and advances 72,030 56,275 Current assets 5,385 4,269 Cash and Bank Balances 200 175

Short-term loans and advances 5,019 3,954 Other current assets 166 139

Total 77,632 60,757

Page 21: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Key metrics

Key Ratios March'14

March‘15

March‘16

Yield 12.6% 12.5% 12.4%

Cost of Debt 9.3% 9.6% 9.4%

Spread 3.2% 2.9% 3.0%

NIM 4.7% 4.5% 4.4%

Cost to Income 18.4% 21.0% 19.3%

Return on Assets 2.7% 2.3% 2.2%

Return on Equity 16.4% 16.1% 17.7%

Gross NPA 1.5% 1.3% 1.3%

Net NPA 0.7% 0.5% 0.5%

Provision Coverage 51.5% 62.4% 63.5%

CAR 24.5% 20.3% 20.7%

Outstanding loan book (% break up)

- Non Salaried 55.0% 56.8% 58.8%

- Salaried 45.0% 43.2% 41.2%

- Individual Home Loans 81.3% 80.8% 80.2%

- Loans against Property 18.7% 19.2% 19.8%

21

Page 22: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Key metrics

Key metrics (Annualized ) Q4FY15

Q3FY16 Q4FY16

Yield 12.7% 12.5% 12.2%

Cost of Debt 9.6% 9.4% 9.2%

Spread 3.1% 3.1% 3.0%

NIM 4.6% 4.5% 4.6%

ROAA 2.4% 2.2% 2.3%

ROANW 17.4% 17.1% 18.7%

22

Page 23: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

Historical performance at a glance

23

Particulars Units FY12 FY13 FY14 FY15 FY16 CAGR

Outstanding Loan Book Rs mn 28,041 35,448 46,619 60,129 76,912 29%

Sanctions Rs mn 11,116 12,848 18,225 23,989 30,828 29%

Disbursements Rs mn 10,423 11,674 17,153 21,812 28,512 29%

Income from Operations Rs mn 3,188 4,057 5,342 6,922 8,801 29%

Net Interest Income Rs mn 1,032 1,256 1,908 2,373 3,039 31%

PAT Rs mn 615 800 1,101 1,231 1,501 25%

Networth Rs mn 2,953 6,233 7,193 8,102 9,512 34%

Debt Rs mn 24,860 30,647 39,020 51,044 65,379 27%

Ratios

NIM % 4.2 4.0 4.7 4.5 4.4

Gross NPA % 1.4 1.5 1.5 1.3 1.3

Net NPA % 1.0 1.0 0.7 0.5 0.5

ROAA % 2.5 2.5 2.7 2.3 2.2

ROANW % 22.8 17.4 16.4 16.1 17.7

CRAR % 16.5 25.5 24.5 20.3 20.7

Page 24: Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May 2016 Diversified borrowing profile . Source (Rs mn) Mar'15 Mar'16 National housing

Repco Home Finance Limited

Earnings Presentation May 2016

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]

24


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