Earnings Presentation Q2FY16 - Repco Home Q2FY16 Earning… · Earnings Presentation Q2FY16 . Repco Home Finance Limited ... Repco Bank Ltd Non Covertible Debuntures . Repco Home

Repco Home Finance Limited

Earnings Presentation November 2015

www.repcohome.com

Earnings Presentation

Q2FY16



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



Q2FY16 & H1FY16 Performance



• 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



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



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


Q2FY15

Q2FY16

Q2FY15

Q2FY16

6



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



Net interest income Income from operations

Cost to income ratio Net profit


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



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



Gross NPA Net NPA

Increased focus on asset quality & provisioning

10

Provision coverage ratio


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



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



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


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



Geographic Presence



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



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%


Earnings Presentation November 2015 16

Annexure



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%



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%



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



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%



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]

21

mailto:[email protected]

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Documents

Earnings Presentation Q2FY16 - Repco Home Q2FY16 Earning… · Earnings Presentation Q2FY16 . Repco Home Finance Limited ... Repco Bank Ltd Non Covertible Debuntures . Repco Home