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Repco Home Finance Limited
Earnings Presentation November 2015
www.repcohome.com
Earnings Presentation
Q2FY16
Repco Home Finance Limited
Earnings Presentation November 2015
Agenda
Q2FY16 Performance
► Business summary…………………………………………….……..04
► Financial performance ………………………… …………….05-11
► Diversified source of funding…………..……………………..…..12
Geographic Presence
► Expanding footprint.………………………………………………..14
► Region-wise loan book.………………………………………….…15
Annexure
2
Repco Home Finance Limited
Earnings Presentation November 2015
Q2FY16 & H1FY16 Performance
Repco Home Finance Limited
Earnings Presentation November 2015
• Loans outstanding (Sep 30, 2015) Rs. 68,488 mn
• Net worth (Sep 30, 2015) Rs. 8,840 mn
• Average loan per unit Rs. 1.3 mn
• Number of live accounts 62,468
• Current Employee Strength 584
• Cost to Income ratio 21.3%
• Gross NPA (%) (Sep 30, 2015) 1.80%
• Net NPA (%) (Sep 30, 2015) 0.92%
Business Summary
4
Repco Home Finance Limited
Earnings Presentation November 2015
Strong growth continues in H1FY16
28%
3,258
4,165
25%
1,123
1,403
20%
575
693
31%
52,380
68,488
46%
10,400
15,196
42%
9,558
13,564
Total Income Net Interest Income Profit after Tax
Loan Book Sanctions Disbursements
Figures in Rs Million
H1FY15
H1FY16
H1FY15
H1FY16
5
Repco Home Finance Limited
Earnings Presentation November 2015
On the back of robust Q2FY16
27%
1,697
2,164
25%
593
739
19%
327
390
31%
52,380
68,488
53%
5,589
8,579
43%
5,412
7,763
Total Income Net Interest Income Profit after Tax
Loan Book Sanctions Disbursements
Figures in Rs Million
Q2FY15
Q2FY16
Q2FY15
Q2FY16
6
Repco Home Finance Limited
Earnings Presentation November 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
7
10,400
15,196
9,558
13,564
3,000
5,000
7,000
9,000
11,000
13,000
15,000
H1FY15 H1FY16
Sanctions Disbursements
52,380
68,488
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Sep'14 Sep'15
44.3% 42.5%
55.7% 57.5%
0%
20%
40%
60%
80%
100%
Sep'14 Sep'15
Salaried Non Salaried
80.5% 80.8%
19.5% 19.2%
0%
20%
40%
60%
80%
100%
Sep'14 Sep'15
Individual home loans Loans against property
Repco Home Finance Limited
Earnings Presentation November 2015
Net interest income Income from operations
Cost to income ratio Net profit
Figures in Rs million
Driving robust income and earnings growth
8
3,253
4,157
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
H1FY15 H1FY16
1,123
1,403
-
200
400
600
800
1,000
1,200
1,400
1,600
H1FY15 H1FY16
575
693
-
100
200
300
400
500
600
700
800
H1FY15 H1FY16
19.6% 21.3%
0.0%
5.0%
10.0%
15.0%
20.0%
H1FY15 H1FY16
Repco Home Finance Limited
Earnings Presentation November 2015
Net interest margin
Return on average net worth (TTM) Return on assets (TTM)
And steady profitability ratios
9
Spread
4.5% 4.4%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
H1FY15 H1FY16
3.0% 3.0%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
H1FY15 H1FY16
16.3% 16.1%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
H1FY15 H1FY16
2.5%
2.2%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
H1FY15 H1FY16
Repco Home Finance Limited
Earnings Presentation November 2015
Gross NPA Net NPA
Increased focus on asset quality & provisioning
10
Provision coverage ratio
Figures in Rs Million
862 1,236
1.65% 1.80%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
-
500
1,000
1,500
H1FY15 H1FY16
Gross NPA Gross NPA %
418
624
0.81% 0.92%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
-
100
200
300
400
500
600
700
800
H1FY15 H1FY16
Net NPA Net NPA %
51.5% 49.5%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
H1FY15 H1FY16
Repco Home Finance Limited
Earnings Presentation November 2015
Sustainable improvement in asset quality
Movement in NPAs
• Owing to seasonality, Q1 & Q3 GNPAs are generally higher than Q2 & Q4 GNPAs.
11
2.1%
2.9%
1.5%
2.2%
1.7%
2.0%
1.5%
2.5%
1.7%
2.0%
1.3%
2.2%
1.8%
1.6%
2.3%
1.0%
1.5%
0.9%
1.3%
0.7%
1.6%
0.8%
1.2%
0.5%
1.3%
0.9%
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 November 2015
Diversified source of funding
Sources of borrowing Sources (as on Sep 30, 2015) Amount
National housing Bank 9,693
Repco Bank 4,973
Commercial Banks 39,874
NCDs 4,000
CPs 0
Total 58,540
Figures in Rs million
12
1. Commercial papers will offset Repco Bank borrowings to some extent 2. Company has made good use of intra-quarter commercial paper borrowings at sub-
8% discount rates 3. In a falling interest rate scenario, NCDs will dominate incremental borrowings
(constrained by approved NCD borrowing limits)
22% 17%
69% 68%
9% 8% 7%
0%
20%
40%
60%
80%
100%
Sep'14 Sep'15
National Housing Bank Banks
Repco Bank Ltd Non Covertible Debuntures
Repco Home Finance Limited
Earnings Presentation November 2015
Geographic Presence
Repco Home Finance Limited
Earnings Presentation November 2015
Expanding footprint
14
Significant presence
Strong presence
Recent expansion
FY15 expansion
Presence in 11 states 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
FY09 FY10 FY11 FY12 FY13 FY14 FY15 H1
FY16
Repco Home Finance Limited
Earnings Presentation November 2015
Region-wise loan book
15
Andhra
Pradesh,
8.3% Telangana,
3.4%
Gujarat, 1.9%
Karnataka,
12.5%
Kerala, 3.8%
Maharastra,
5.4%
Tamil Nadu,
62.5%
Others, 2.3%
Key States Sep’14 Sep’15
Andhra Pradesh &
Telangana 12.3% 11.7%
Gujarat 1.0% 1.9%
Karnataka 11.9% 12.5%
Kerala 3.7% 3.8%
Maharastra 5.1% 5.4%
Tamil Nadu 64.0% 62.5%
Repco Home Finance Limited
Earnings Presentation November 2015 16
Annexure
Repco Home Finance Limited
Earnings Presentation November 2015
Shareholding pattern
Outstanding shares – 62.37 mn Major Non-Promoter Shareholders %
shareholding
Parvest Equity India 3.81%
India Capital Fund Limited 3.09%
Goldman Sachs India Fund Limited 2.57%
Franklin Templeton Indiaprima Fund 2.09%
Nomura India Investment Fund Mother Fund 1.99%
Smallcap World Fund, Inc 1.88%
TVF Fund Ltd 1.75%
Wasatch Emerging Markets Small Cap Fund 1.47%
DSP Blackrock Micro Cap Fund 1.39%
GMO Emerging Domestic Opportunities Fund 1.35%
Franklin India Smaller Companies Fund 1.34%
SBI Magnum Global Fund 1.12%
Alliance Bernstein India Growth Fund 1.01%
17
Promoters,
37.25%
Mutual
Funds,
16.24%
Bodies
Corporates
, 2.92%
Individuals,
11.26%
FIIs, 30.20%
NRIs, 1.30%
Others,
0.83%
Repco Home Finance Limited
Earnings Presentation November 2015
Profit and loss statement
(Rs. million) Q2 FY16 Q2 FY15 YoY (%) Q1 FY16 QOQ (%) H1 FY16 H1 FY15 YoY (%)
Income:
Revenue from operations 2,156 1,692 27% 2,000 8% 4157 3253 28%
Other Income 7 5 0 1 877% 8 6 42%
Total Income 2,164 1,697 27% 2,001 8% 4,165 3,258 28%
Expenses:
Interest and other Financial Charges 1,344 1,054 28% 1,271 6% 2615 2030 29%
Employee benefit expense 114 77 49% 101 13% 215 145 49%
Depreciation and amortization expense 10 7 38% 10 -7% 20 12 62%
Other expenses 51 44 16% 43 21% 94 83 13%
Provision for Non-Performing Assets 16 0 100% 102 -84% 119 91 31% Contingency Provisions against Standard Assets 30 17 80% 11 187% 41 24 68% Provision for diminution in value of Investments 0 0 0% 0 0% 0 0 0%
Bad-Debts Written Off 1 0 235% 0 0% 1 0 235%
Total Expenses 1,567 1,199 31% 1,538 2% 3,105 2,385 30%
Profit before tax 597 498 20% 463 29% 1060 873 21%
Tax expense:
Current tax 188 141 33% 169 12% 356 269 32%
Deferred Tax 19 30 -37% -8 -341% 11 28 -61%
Net Profit 390 327 19% 302 29% 693 575 20%
Repco Home Finance Limited
Earnings Presentation November 2015
Balance sheet
(Rs. million) As on Sep 30, 2015 As on Sepr 30, 2014 EQUITY AND LIABILITIES: Shareholder's Funds 8,857 7,531
Share Capital 624 622 Reserves and Surplus 8,233 6,910 Non-Current Liabilities 46,520 32,702 Long-term borrowings 45,242 31,738 Deferred Tax Liabilities (Net) 354 291 Long term provisions 924 673
Current Liabilities 13,806 12,751 Short-term borrowings 5,623 5,948 Other current liabilities 8,150 6,761 Short-term provisions 32 42
Total 69,182 52,984
ASSETS: Non-current assets 64,316 49,202 Fixed assets Tangible assets 74 58 Intangible assets 17 3 Non-current investments 124 124 Deferred tax assets (net) 0 0 Long term loans and advances 64,102 49,018
Current assets 4,866 3,782 Cash and Bank Balances 190 220 Short-term loans and advances 4,512 3,436 Other current assets 163 126
Total 69,182 52,984
Repco Home Finance Limited
Earnings Presentation November 2015
Key metrics
20
Particulars Units Sep'15 Sep'14 Mar'15
Outstanding Loan Book Rs. Mn 68,488 52,380 60,129
Networth Rs. Mn 8,840 7,529 8,057
Borrowings Rs. Mn 58,540 43,872 51,044
Gearing x 6.6 5.8 6.3
Earning per share Rs. 22.2 18.5 19.8
Book value per share Rs. 141.7 121.1 129.2
Yield on assets % 12.50% 12.74% 12.54%
Cost of funds % 9.55% 9.79% 9.59%
Spread % 2.95% 2.95% 2.95%
Gross NPA % 1.80% 1.65% 1.32%
Net NPA % 0.92% 0.81% 0.50%
Credit Cost % 0.50% 0.46% 0.38%
Loan Book Composition:
Salaried % 42.5% 44.3% 43.2%
Non-Salaried % 57.5% 55.7% 56.8%
Home Loans % 80.8% 80.5% 80.8%
Loans against property % 19.2% 19.5% 19.2%
Repco Home Finance Limited
Earnings Presentation November 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
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 .
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recipient’s organisation.
Safe Harbor:
V. Raghu, Executive Director/ Bala , Investor Relations Repco Home Finance Limited Phone: +91 44 42106650 Email: [email protected]
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