Repco Home Finance Limited
Earnings Presentation August 2015
www.repcohome.com
Earnings Presentation
Q1FY16
Repco Home Finance Limited
Earnings Presentation August 2015
Agenda
Q1FY16 Performance
► Business summary…………………………………………….……..04
► Financial performance ………………………… …………….05-10
► Diversified source of funding…………..……………………..…..11
Geographic Presence
► Expanding footprint.………………………………………………..13
► Region-wise loan book.………………………………………….…14
Annexure
2
Repco Home Finance Limited
Earnings Presentation August 2015
Q1FY16 Performance
Repco Home Finance Limited
Earnings Presentation August 2015
• Loans outstanding (June 30, 2015) Rs. 63,442 mn
• Net worth (June 30, 2015) Rs. 8,428 mn
• Average loan per unit Rs. 1.2 mn
• Number of live accounts 59,428
• Current Employee Strength 571
• Cost to Income ratio 21.1%
• Capital Adequacy Ratio 20.0% (Provisional)
• Gross NPA (%) (June 30, 2015) 2.22%
• Net NPA (%) (June 30, 2015) 1.29%
Business Summary
4
Repco Home Finance Limited
Earnings Presentation August 2015
Robust growth continues in Q1FY16
28%
1,561
2,001
25%
530
664
22%
248
302
30%
48,923
63,442
38%
4,811
6,617
40%
4,146
5,801
Total Income Net Interest Income Profit after Tax
Loan Book Sanctions Disbursements
Figures in Rs Million
Q1FY15
Q1FY16
Q1FY15
Q1FY16
5
Repco Home Finance Limited
Earnings Presentation August 2015
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
6
4,811
6,617
4,146
5,801
3,000
4,000
5,000
6,000
7,000
Q1FY15 Q1FY16
Sanctions Disbursements
48,923
63,442
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
Q1FY15 Q1FY16
44.7% 42.9%
55.3% 57.1%
0%
20%
40%
60%
80%
100%
Q1FY15 Q1FY16
Salaried Non Salaried
80.8% 81.0%
19.2% 19.0%
0%
20%
40%
60%
80%
100%
Q1FY15 Q1FY16
Individual home loans Loans against property
Repco Home Finance Limited
Earnings Presentation August 2015
Net interest income Income from operations
Cost to income ratio Net profit
Figures in Rs million
Driving robust income and earnings growth
7
Excluding
ESOP charge,
the cost to
income ratio
will be
Q1FY15–
17.0%
Q1FY16-
18.1%
1,560
2,000
-
500
1,000
1,500
2,000
Q1FY15 Q1FY16
530
664
-
100
200
300
400
500
600
700
Q1FY15 Q1FY16
248
302
-
50
100
150
200
250
300
350
Q1FY15 Q1FY16
19.2% 21.1%
0.0%
5.0%
10.0%
15.0%
20.0%
Q1FY15 Q1FY16
Repco Home Finance Limited
Earnings Presentation August 2015
Net interest margin
Return on average net worth (TTM) Return on assets (TTM)
And steady profitability ratios
8
Spread
Note – Post
DTL profits
considered
for return
ratios
4.4% 4.3%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
Q1FY15 Q1FY16
2.8% 2.9%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Q1FY15 Q1FY16
16.5% 16.4%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
Q1FY15 Q1FY16
2.6%
2.3%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Q1FY15 Q1FY16
Repco Home Finance Limited
Earnings Presentation August 2015
Gross NPA Net NPA
Increased focus on asset quality & provisioning
9
Provision coverage ratio
Figures in Rs Million
1,218 1,406
2.49%
2.22%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
-
500
1,000
1,500
Q1FY15 Q1FY16
Gross NPA Gross NPA %
774 810
1.60% 1.29%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
-
200
400
600
800
1,000
1,200
Q1FY15 Q1FY16
Net NPA Net NPA %
36.4%
42.4%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
Q1FY15 Q1FY16
Repco Home Finance Limited
Earnings Presentation August 2015
Sustainable improvement in asset quality
Movement in NPAs
• Owing to seasonality, Q1 & Q3 GNPAs are generally higher than Q2 & Q4 GNPAs
• Improvement in asset quality despite material changes in loan book composition over the last 2 years.
10
2.6%
2.1%
2.9%
1.5%
2.2%
1.6%
2.0%
1.5%
2.5%
1.6%
2.0%
1.3%
2.2%
2.0% 1.6%
2.3%
1.0%
1.5%
0.9%
1.3%
0.7%
1.6%
0.8%
1.2%
0.5%
1.3%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
Gross NPA Net NPA
Repco Home Finance Limited
Earnings Presentation August 2015
Diversified source of funding
Sources of borrowing Sources (as on June 30, 2015) Amount
Banks 36,834
National Housing Bank 10,320
Repco Bank Ltd 4,885
Non Convertible Debentures (NCDs) 1,000
Commercial Papers (CPS) 1,000
Total 54,038
Figures in Rs million
11
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)
26% 19%
64% 68%
10% 9% 2% (NCDs)
2% (CPs)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
June'14 June'15
National Housing Bank Banks
Repco Bank Ltd Non Covertible Debuntures
Commercial Papers
Repco Home Finance Limited
Earnings Presentation August 2015
Geographic Presence
Repco Home Finance Limited
Earnings Presentation August 2015
Expanding footprint
13
Significant presence
Strong presence
Recent expansion
FY15 expansion
Presence in 11 states (including
Telangana) and 1 Union Territory with 108
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
142 146
30
50
70
90
110
130
150
Repco Home Finance Limited
Earnings Presentation August 2015
Region-wise loan
14
Andhra
Pradesh, 8.6% Telangana,
3.4%
Gujarat, 1.8%
Karnataka,
12.4%
Kerala, 3.7%
Maharastra,
5.4%
Tamil Nadu,
62.5%
Others, 2.2%
Repco Home Finance Limited
Earnings Presentation August 2015 15
Annexure
Repco Home Finance Limited
Earnings Presentation August 2015
Shareholding pattern
Outstanding shares – 62.36 mn Major Non-Promoter Shareholders %
shareholding
Smallcap World Fund, Inc 4.07%
Parvest Equity India 3.46%
India Capital Fund Limited 3.09%
Goldman Sachs India Fund Limited 2.53%
Nomura India Investment Fund Mother Fund 1.99%
Franklin Templeton Mutual Fund - Indiaprima 1.93%
TVF Fund Ltd 1.75%
National Westminster Bank Plc - Jupiter India 1.44%
DSP Blackrock Micro Cap Fund 1.39%
GMO Emerging Domestic Opportunities Fund 1.18%
Franklin India Smaller Companies Fund 1.18%
SBI Magnum Global Fund 1.12%
16
Promoters,
37.25%
Mutual
Funds,
15.53%
Bodies
Corporates,
3.50%
Individuals,
12.52%
FIIs, 28.71%
NRIs, 1.50%
Others,
0.99%
Repco Home Finance Limited
Earnings Presentation August 2015
Profit and loss statement
(Rs. million) Q1 FY16 Q1 FY15 YoY (%) Q4 FY15 QOQ
(%) FY15 FY14 YoY (%)
Income:
Revenue from operations 2,000 1,560 28% 1,913 5% 6922 5341 30%
Other Income 1 1 0 1 -47% 8 12 -31%
Total Income 2,001 1,561 28% 1,915 5% 6,930 5,353 29%
Expenses:
Interest and other Financial Charges 1,271 976 30% 1,168 9% 4318 3247 33%
Employee benefit expense 101 68 49% 105 -4% 335 211 59%
Depreciation and amortization expense 10 5 92% 10 8% 29 24 22%
Other expenses 43 39 9% 50 -15% 183 153 19%
Provision for Non-Performing Assets 102 91 13% 33 100% 140 176 -20%
Contingency Provisions against Standard Assets 11 7 42% 28 -62% 62 47 31%
Provision for diminution in value of Investments 0 0 0% 0 0% 0 1 -100%
Bad-Debts Written Off 0 0 0% 1 0% 1 3 -54%
Total Expenses 1,538 1,186 30% 1,395 10% 5,068 3,862 31%
Profit before tax 463 375 24% 520 -11% 1862 1491 25%
Tax expense:
Current tax 169 129 31% 156 8% 559 465 20%
Deferred Tax -8 -2 294% 16 -149% 72 -75 -196%
Post DTL Net Profit/(Loss) 302 248 22% 348 -13% 1,231 1,101 12%
17
Repco Home Finance Limited
Earnings Presentation August 2015
Key metrics
18
Particulars Units Q1 FY15 Q1 FY16
Outstanding Loan Book Rs. Mn 48,923 63,442
Sanctions Rs. Mn 4,811 6,617
Disbursements Rs. Mn 4,146 5,801
Income from Operations Rs. Mn 1,560 2,000
Net Interest Income Rs. Mn 530 664
PAT Rs. Mn 248 302
Networth Rs. Mn 7,189 8,428
Yield on assets % 12.61% 12.53%
Cost of funds % 9.78% 9.68%
Spread % 2.83% 2.85%
Gross NPA % 2.49% 2.22%
Net NPA % 1.60% 1.29%
Loan Book Composition:
Salaried % 44.7% 42.9%
Non-Salaried % 55.3% 57.1%
Home Loans % 80.8% 81.0%
Loans against property % 19.2% 19.0%
Repco Home Finance Limited
Earnings Presentation August 2015
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
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construed as a forecast implying any indicative assurance or guarantee of future performance, nor that the assumptions on which such future
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Safe Harbor:
V. Raghu, Executive Director/ Bala , Investor Relations Repco Home Finance Limited Phone: +91 44 42106650 Email: [email protected]
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