Earnings Presentation Q4FY18 - Repco Home Finance€¦ · Repco Home Finance Limited Earnings Presentation May 2018 Gross NPA Net NPA Asset quality & provisioning 12 Provision coverage

Repco Home Finance Limited

Earnings Presentation May 2018

www.repcohome.com

Earnings Presentation

Q4FY18



Agenda

Q4FY18 Performance

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

► Financial performance for Q4FY18 ……… ……………………

► Borrowing profile………………..……………….………………….

Geographic Presence

► Footprint.………………………………………………..

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

Annexure



Q4FY18 & FY18 Performance



• Loans outstanding (Mar 31, 2018) Rs. 98,568 mn

• Net worth (Mar 31, 2018) Rs. 12,535 mn

• Tier 1 capital adequacy ratio 23.04%

• Average loan per unit Rs. 1.4 mn

• Number of live accounts 82,948

• Current Employee Strength 785

• Gross NPA (%) (Mar 31, 2018) 2.87%

• Net NPA (%) (Mar 31, 2018) 1.29%

Business Summary

4



Q4FY18 Performance

4%

2,735

2,832

13%

1,029

1,164

12%

506

566

13%

71,340

80,264

32%

6,976

9,225

28%

6,645

8,487

Income from operations Net Interest Income Profit after Tax

Home Loans Sanctions Disbursements

Figures in Rs million

Q4FY17

Q4FY18

Q4FY17

Q4FY18

5



FY18 performance

6%

10,442

11,054

17%

3,678

4,286

13%

1,823

2,061

10%

89,399

98,568

7%

28,758

30,793

6%

26,424

28,065

Income from Operations Net Interest Income Net Profit

Loan Book Sanctions Disbursements


FY17

FY18

FY17

FY18

6



Relative performance – Q4FY18

7

Particulars Units Q4FY17 Q3FY18 Q4FY18

Sanctions Rs. Mn 6,976 7,725 9,225

Disbursements Rs. Mn 6,645 6,571 8,487

Net interest income Rs. Mn 1,029 1,071 1,164

PAT Rs. Mn 506 485 566

NIM % 4.7 4.6 4.8

Yield on assets % 12.1 11.5 11.5

Cost of funds % 8.7 8.3 8.0

Spread % 3.4 3.2 3.4

Cost to income ratio % 18.2 18.9 17.5

Return on assets % 2.3 2.1 2.3

Return on equity % 19.1 16.5 18.5



Asset book

Loan BookSanctions and disbursements

Mix of loan portfolioLoan book composition


8

28,75830,793

26,424 28,065

3,000

8,000

13,000

18,000

23,000

28,000

33,000

FY17 FY18Sanctions Disbursements

89,399

98,568

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

1,00,000

Mar'17 Mar'18

39.8% 42.9%

60.2% 57.1%

0%

20%

40%

60%

80%

100%

Mar'17 Mar'18

Salaried Non Salaried

79.8% 81.4%

20.2% 18.6%

0%

20%

40%

60%

80%

100%

Mar'17 Mar'18

Home loans Loans against property



Net interest incomeTotal income

Net worthNet profit


Income and earnings growth

9

10,459 11,077

-

2,000

4,000

6,000

8,000

10,000

12,000

FY17 FY18

3,678

4,286

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

FY17 FY18

1,823

2,061

500

700

900

1,100

1,300

1,500

1,700

1,900

2,100

2,300

FY17 FY18

10,833

12,535

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

Mar'17 Mar'18



Other opexEmployee cost

Cost to income ratio


Operating cost

10

431

488

0

100

200

300

400

500

600

FY17 FY18

245

293

0

50

100

150

200

250

300

350

FY17 FY18

16.9% 17.0%

0.0%

5.0%

10.0%

15.0%

20.0%

FY17 FY18



Net interest margin

Return on equity Return on assets

Profitability ratios

11

Spread

4.4%

4.6%

3.0%

3.2%

3.4%

3.6%

3.8%

4.0%

4.2%

4.4%

4.6%

4.8%

FY17 FY18

3.1%

3.2%

2.0%

2.2%

2.4%

2.6%

2.8%

3.0%

3.2%

3.4%

FY17 FY18

2.2% 2.2%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

FY17 FY18

18.2% 17.6%

0.0%

5.0%

10.0%

15.0%

20.0%

FY17 FY18



Gross NPA Net NPA

Asset quality & provisioning

12

Provision coverage ratio


2,328 2,827

2.60% 2.87%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

-

500

1,000

1,500

2,000

2,500

3,000

Mar'17 Mar'18

Gross NPA Gross NPA %

1,227 1,255

1.39%

1.29%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

-

200

400

600

800

1,000

1,200

1,400

Mar'17 Mar'18

Net NPA Net NPA %

47.3%

55.6%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

Mar'17 Mar'18

Note – Rs. 340 Mn of loans outstanding backed by repossessed

collateral assets is included in the aforementioned Mar’18

GNPA amount. Details of the pool –

Average ticket size – Rs. 2.2 mn

LTV – 56%

Provision carried in BS – 100%

The aforementioned amount EXCLUDES loans outstanding

backed by repossessed collateral assets but part of the pool

technically written off during Q4FY18.



Asset quality

90+ dpd(%)

13

1.3%

2.2%2.4%

4.2%

2.6%

4.0%

3.4%3.7%

2.9%

0.5%

1.2% 1.3%

3.1%

1.4%

2.6%

1.9%2.1%

1.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep'17 Dec'17 Mar'18

Gross NPA Net NPA



Mix/Product-wise GNPA (%)

14

1.2%

4.1%

2.9%

1.7%

5.1%

3.7%

1.3%

3.4%

2.6%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Salaried Non-Salaried Overall

Mar'18 Dec'17 Mar'17

2.4%

4.9%

2.9%3.2%

5.9%

3.7%

2.3%

3.9%

2.6%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Housing Loan LAP Overall

Mar'18 Dec'17 Mar'17



Diversified borrowing profile

15

Source (Rs mn) Cost* Mar'17 Mar'18 % change

National Housing Bank 7.6% 11,701 9,423 -19%

Repco Bank 8.2% 4,981 6,227 25%

Commercial Banks 8.3% 47,572 44,350 -7%

NCDs 8.5% 7,850 13,370 70%

CPs 7.9% 3,500 8,000 129%

Total 8.18% 75,604 81,370 8%

*Weighted average cost as on the Balance Sheet date

15% 12%

7% 8%

63%55%

10%16%

5% 10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mar'17 Mar'18

National Housing Bank Repco Bank

Commercial Banks NCDs

CPs



Geographic Presence



Footprint

17

Significant presence

Strong presence

Recent expansion

Presence in 11 states and 1 Union Territory

with 131 branches and 29 satellite centers.

Presence beyond South: branches in West

Bengal, Orissa, Maharashtra, Gujarat,

Madhya Pradesh and Jharkhand.

Network Expansion

Strong Presence

Significant Presence

Recent Expansion

Not present yet

54

72

88 92

122

142150 156 160

30

50

70

90

110

130

150

Ma

r'10

Ma

r'11

Ma

r'12

Ma

r'13

Ma

r'14

Ma

r'15

Ma

r'16

Ma

r'17

Ma

r'1

8



Region-wise loan book

18

Annualized

Exposure

States Mar'18 Dec'17 Mar'17YoY

growth

QoQ

growth

Andhra Pradesh 6.8% 6.8% 7.0% 7% 14%

Telangana 4.1% 4.0% 3.7% 24% 28%

Gujarat 2.5% 2.4% 2.1% 30% 37%

Karnataka 12.7% 12.2% 12.2% 14% 29%

Kerala 4.0% 3.9% 3.8% 15% 17%

Maharashtra 7.5% 7.2% 6.4% 29% 28%

Tamil Nadu 59.8% 60.7% 62.2% 6% 9%

Others 2.7% 2.6% 2.6% 13% 25%

Total 100% 100% 100% 10% 15%

Andhra

Pradesh, 6.8% Telangana,

4.1%

Gujarat, 2.5%

Karnataka,

12.7%

Kerala, 4.0%

Maharashtra,

7.5%

Tamil Nadu,

59.8%

Others, 2.7%



Annexure



Shareholding pattern

Outstanding shares – 62.56 mn

20

Major non-promoter shareholders

%

shareholdin

g

Aditya Birla Sun Life Mutual Fund 7.2%

Franklin Templeton Mutual Fund 7.2%

DSP Blackrock Mutual Fund 6.2%

India Capital Fund Limited 3.4%

Parvest Equity India 1.2%

HSBC Global Investment Funds - Asia Ex Japan 2.1%

Alliance Bernstein India Growth (Mauritius) Limited 1.8%

Apax Global Alpha Fund 2.1%

Sundaram Mutual Fund 1.4%

DSP Blackrock Core Fund 1.1%

Promoters,

37.1%

Mutual

Funds,

24.2%

Bodies

Corporates,

1.9%

Resident

Individuals,

10.0%

Foreign

Portfolio

Investors,

23.1%

NRIs, 1.6%

Others,

2.1%



Profit and loss statement

(Rs. million) Q4 FY18 Q4 FY17 YoY (%) Q3

FY18QOQ (%) FY18 FY17 YoY (%)

Income:

Revenue from operations 2,832 2,735 4% 2,775 2% 11,054 10,442 6%

Other income 1 1 -41% 1 -35% 23 17 35%

Total Income 2,833 2,737 4% 2,776 2% 11,077 10,459 6%

Expenses:

Interest and other financial charges 1,610 1,635 -2% 1,623 -1% 6,483 6,463 0%

Employee benefit expense 120 129 -7% 138 -13% 488 431 13%

Depreciation and amortization expense 8 11 -31% 7 6% 31 36 -13%

Other expenses 87 60 45% 72 20% 262 209 26%

Provision for non-performing assets -28 103 -128% 189 -115% 471 460 2%

Contingency provisions against standard assets

21 13 55% 3 671% 42 53 -22%

Bad-debts written off 151 0 100% 2 158 5

Total Expenses 1,967 1,951 1% 2,035 -3% 7,934 7,657 4%

Profit before tax 866 786 10% 741 17% 3,143 2,802 12%

Tax expense:

Current tax 249 235 6% 260 -4% 1,024 940 9%

Deferred Tax 51 45 12% -3 58 39 48%

Net Profit/(Loss) 566 506 12% 485 17% 2,061 1,823 13%

Note – Amount written-off in Q4FY18 includes technically written-off accounts amounting to Rs. 148 mn (100% provided for)

21



Balance sheet

(Rs. million) As on Mar 31, 2018 As on Mar 31, 2017

EQUITY AND LIABILITIES:

Shareholder's Funds 13,283 11,372

Share Capital 626 626

Reserves and Surplus 12,657 10,747

Non-Current Liabilities 53,514 57,612

Long-term borrowings 50,901 55,316

Deferred Tax Liabilities (Net) 497 439

Other long term liablities 89 345

Long term provisions 2,027 1,511

Current Liabilities 32,950 21,445

Short-term borrowings 15,263 9,217

Other current liabilities 17,591 12,092

Short-term provisions 96 136

Total 99,747 90,429

ASSETS:

Non-current assets 92,592 84,063

Fixed assets

Tangible assets 123 71

Intangible assets 12 20

Non-current investments 156 156

Long term loans and advances 92,281 83,816

Other non current assets 21 0

Current assets 7,154 6,366

Cash and Bank Balances 259 225

Short-term loans and advances 6,378 5,724

Other current assets 517 417

Total 99,747 90,429

22



Particulars Units FY17 FY18

Outstanding Loan Book Rs. Mn 89,399 98,568

Sanctions Rs. Mn 28,758 30,793

Disbursements Rs. Mn 26,424 28,065

Net Interest Income Rs. Mn 3,678 4,286

PAT Rs. Mn 1,823 2,061

Yield on assets % 12.2 11.6

Cost of funds % 9.1 8.4

Spread % 3.1 3.2

Net interest margin % 4.4 4.6

Cost to income ratio % 16.9 17.0

Return on assets % 2.2 2.2

Return on equity % 18.2 17.6

Key metrics and relative performance – FY18



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:

Bala S , Investor RelationsRepco Home Finance LimitedPhone: +91 44 42106650 Email: [email protected]

24

mailto:[email protected]

Documents

Earnings Presentation Q4FY18 - Repco Home Finance€¦ · Repco Home Finance Limited Earnings Presentation May 2018 Gross NPA Net NPA Asset quality & provisioning 12 Provision coverage