Q2 FY22 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 32 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

•Voted as the ‘Brand of the

Decade 2019’ by BARC Asia

•Crossed 2,00,000 Cr in

Assets

•NSE for Best Issuer on EBP

20192020

2012: New Logo introduced

3

Q2 FY22 PAT at Rs 247.86 cr as against Rs. 790.90 cr

Q2 FY22 Total Revenue from operations Rs. 4708 cr as against Rs. 4969 cr

Outstanding Loan portfolio up by 11 % to Rs. 237660 cr

Individual Home Loan Portfolio up by 15 % to Rs. 188348 Cr

Q2 FY22 Disbursements Rs.16110 cr against Rs. 12443 cr , growth of 29 %.

Individual Home Loan Disbursements Rs.14330 cr against Rs. 10373 cr, growth of 38 %

Net Interest Income Rs.1173 cr as against Rs.1238 cr as on 30.09.2021

Net Interest Margins 2.00 % for Q2 FY22 as against 2.34 % for Q2 FY21

Stage 3 EAD at 5.14 % as against 5.93 % as on 30.06.2021

During the quarter, the Company raised Preferential Capital from promoter LIC of India to

the tune of Rs. 2335 cr

Executive Summary – Q2/FY22

4

• The quarter witnessed gradual relaxation of restrictions on various activities in the

economy.

• Collection efficiency for September 2021 stood at 99%.

Total ECL provision stood at Rs. 5354.90 Cr as on 30.09.2021.

Covid-19 related provision stood at Rs 314.44 Cr as on 30.09.2021.

Disbursement of Q2 FY22 is 132% of pre-covid level of Q2 FY20.

Impact of Covid 19

5

Disbursement (Rs. Cr) CAGR 7%

Profit After Tax (Rs. cr) CAGR 9%Income (Rs. cr) CAGR 9%

Loan Portfolio (Rs.cr) CAGR 14%

Update – last 5 years

145568167467

194646 210578 232003

0

50000

100000

150000

200000

250000

2017 2018 2019 2020 2021

14080 1484117365

19670 19848

0

10000

20000

2017 2018 2019 2020 2021

1931 20032431

24012734

0500

10001500200025003000

2017 2018 2019 2020 2021

4154149378

53908

4693655223

0

10000

20000

30000

40000

50000

60000

2017 2018 2019 2020 2021

6

Gross & Net NPAs #

Operating Expense to Total Income

Total Provisions* (Rs cr)

Profit per employee (Rs. lacs)

# As per IGAAP

* For 2019, 2020 & 2021 ECL Provisions of Stage 1,2 and 3

Update – last 5 years

0.43%0.78%

1.54%

2.86%

4.01%

0.14%0.43%1.08%

1.99%2.70%

0%

1%

2%

3%

4%

5%

2017 2018 2019 2020 2021

Gross

Net

1038 12491659

2612

3971

0500

10001500200025003000350040004500

2017 2018 2019 2020 2021

105.3495.22

105.28100.41

112.66

0

50

100

2017 2018 2019 2020 2021

4.34%

2.98% 2.74% 3.14% 3.53%

0%

5%

2017 2018 2019 2020 2021

7

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

38.26 39.6848.16 47.59

54.18

0102030405060

2017 2018 2019 2020 2021

219.49 251.49322.19 360.47 402.35

0

200

400

2017 2018 2019 2020 2021

1.43% 1.28% 1.34% 1.18% 1.24%

0%

1%

2%

2017 2018 2019 2020 2021

19.00% 17.00%16.00%

14.00% 14.00%

0%

10%

20%

2017 2018 2019 2020 2021

• 9 Regional Offices

• 24 Back Offices

• 282 Marketing Offices

• Rep offices in Dubai & Kuwait

• Coverage of more than 450 centers

• 2471 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

2008 125 14 6 985 21936

2013 194 16 7 1446 77812

2020 282 24 9 2392 210578

2021 282 24 9 2427 232003

Widening footprint…improved efficiencies

8

HOME LOAN AGENTS (HLAs)

(Agents of LIC)

DIRECT SALES AGENTS (DSAs)

(Small Firms/Companies etc)

CUSTOMER RELATIONS

ASSOCIATES (CRAs)

(Individual Agents of the Company)

282Marketing Offices

47 branches of

LICHFL Financial Services(100% subsidiary of LICHFL)

Distribution Network

9

DIRECT MARKETING EXECUTIVES

(DME)(Captive Marketing Channel)

New Marketing Channel

*Online Loan approvals during Q2 FY22 were Rs.5872 Cr

89%

11%

Customer Type (No.)

Salaried Self Employed

56%

17%

4%2%

9%

12%

Originations by source

HLA DSA CRA DME DIRECT LICHFLFSL

₹ 20.0

₹ 21.0

₹ 22.0

₹ 23.0

₹ 24.0

₹ 25.0

H1FY21 H1FY22

Incremental Ticket Size(Rs lacs)

42%85

Offices58%197

Offices

Top 7 cities & Others

Top 7 cities Others10

Origination Pattern & Average Ticket Size

11

Loan Book Composition

30.09.202030.09.2021

Retail Home Loans

79.25%

Retail LAP/ other

14.30%

Developer Loans6.45%

O/s Portfolio Rs. 237660 cr O/s Portfolio Rs. 213349 cr

Retail Home Loans

76.50%

Retail LAP/ other

16.30%

Developer Loans7.20%

12

Installment to Net Income RatioOn Incremental Sanctions

As of FY 20 31.00%

As of FY 21 29.00%

For H1FY22 30.00%

Loan To Value RatioOn Incremental Sanctions

As of FY 20 49%

As of FY 21 48%

For H1FY22 50%

Pure Floating Rate LoansTo Outstanding Portfolio

As of FY 20 92%

As of FY 21 97%

As of H1FY22 98%

PrepaymentLump Sum/ opening book

As of FY 20 10.1%

As of FY 21 10.8%

For H1FY22 9.9%

Individual Loans – Portfolio Stats

13

Q2 FY 2022 Q2 FY 2021

Return on Average Equity (%) 4.60% 16.3%

Return on Average Assets (%) 0.42% 1.5%

Earnings per share (on Rs 2 pd up) 4.51 15.67

Capital Adequacy Ratio

Tier I

Tier II

Total

March 2021

13.87

1.40

15.28

Sept 2020

13.07

1.43

14.49

Financial Highlights- Q2

14

Executive Summary-Q2/FY22

Var Q2

FY22

(Rs. Cr)

Q2

FY21

(Rs. Cr)

Var H1

FY22

(Rs.

Cr)

H1 FY21

(Rs. Cr)

Revenue from Operations(5.25%) 4708.01 4969.03 (4.09%) 9565.12 9972.74

Finance cost (5.29%)3504.29 3700.19 (5.53%) 7051.79 7464.66

Net Interest Income (5.25%)1172.94 1237.97 (0.12%) 2455.68 2458.58

Impairment on Financial Instruments and

Net Loss on De-recognition of Financial

Instruments639.15 110.90 1473.79 169.55

Profit before Tax(69.39%) 308.95 1009.26 (75.24%) 501.88 2026.93

Tax Expense(72.02%) 61.09 218.36 (75.97%) 100.58 418.55

Net Profit(68.66%) 247.86 790.90 (75.05%) 401.30 1608.38

Executive Summary-Q2/FY22

Var Q2

FY22

(Rs. Cr)

Q2

FY21

(Rs. Cr)

Var H1 FY22

(Rs. Cr)

H1 FY21

(Rs. Cr)

Disbursements

Individual 35% 15757 11640 61% 24172 15042

Project (56%) 353 803 (38%) 590 962

Total 29% 16110 12443 55% 24762 16004

Outstanding Portfolio

Individual 12% 222365 197986

Project (0.45%) 15295 15363

Total 11% 237660 213349

Net Interest Margins(%) 2.00% 2.34% 2.09% 2.32%

Outstanding Liabilities 10% 209090 190279

Weighted average cost of funds 6.76% 7.61%

Yield on advances annualised 8.72% 9.82%

Spreads 1.96% 2.21%

Outstanding Borrowings – Rs. 209090 crSource Wtd

Avg

Cost

(%)

Banks & Institutions 5.80%

National Housing Bank 5.69%

Non Convertible Debenture 7.69%

Tier II Bond 7.30%

Commercial Paper 4.10%

Deposits 6.21%

Total 6.76%

as on 30.09.2021

Liability Profile

During Q2 FY22, Incremental Cost of funds was 4.90%

Bank27%

NCD54%

NHB5%

Tier II bond1%

CP5%

Deposits8%

16

17

Change in Liability Mix- last 4 yrs

Wtd. Avg. cost

of Funds

6.76% 6.88% 6.93% 8.08% 8.49%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q2FY22 Q1FY22 FY21 FY20 FY19

Others

Deposit

NHB

Bank

NCD

18

Yield & Cost of Funds on portfolio

H1 FY21 H1 FY22

Yield on Advances onPortfolio

9.82% 8.72%

Wtd Avg cost of funds onTotal Borrowed Funds

7.61% 6.76%

9.82%

8.72%

7.61%

6.76%

0.01

0.012

0.014

0.016

0.018

0.02

0.022

0.024

0.026

0.028

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

19

NIMs

2.34%

2.00%

1.00%

1.50%

2.00%

2.50%

3.00%Q

2 F

Y2

1

Q2

FY

22

2.32%

2.09%

1.00%

1.50%

2.00%

2.50%

3.00%

H1

FY

21

H1

FY

22

20

Classification of Assets

Exposure At Default % September-21 September-20

Stage 1 90.44% 95.89%

Stage 2 4.42% 1.32%

Stage 3 5.14% 2.79%

Total 100% 100%

ECL Provision September-21 September-20

Stage 1 Rs. 40.83 cr Rs. 0.13 cr

Stage 2 Rs. 19.55 cr Rs. 0.05 cr

Stage 3 Rs. 5294.52 cr Rs. 2771.74 cr

21

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.

Thank you