Repco Investor... · 2020-03-03 · Kind Attn: Listing Department Dear Sir, Sub: Investor Presentation on financial results, for1 the Quarter /Nine months period ended 31 December

Repco Home Finance

REPCO HOME FINANCE LIMITED. (Promoted by Repco Bank-Govt. of India Enterprise)

CIN : 165922TN2000P1C0441655

Thanking You,

Yours Faithfully,

RHFUSE/17/2019-20

The BSE Ltd, Phiroze Jeejeebhoy Towers, 26th Floor, Dalal Street, Mumbai-400001 BSE Security Code: 535322

February 07,2020

The National Stock Exchange of India Ltd, Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai- 400051 NSE Symbol: REPCOHOME

Kind Attn: Listing Department

Dear Sir,

Sub: Investor Presentation on financial results, for1 the Quarter /Nine months period ended 31 December 2019

, • •• .=,. •, We submit herewith a copy of the presentation on the fina_ncIgl performance of the Company

for the quarter/Nine months period ended 31 December 2019.

This is submitted for your information and records.

Company Secretary

• AI "L' •,:..

Corporate Office : 3rd Floor, Alexander Square, New No: 2 (Old No. 34 & 35) Sardar Patel Road, Guindy, Chennai - 600 032. Phone : 044 - 42106650 Fax : 044 -42106651 E-mail : [email protected], www.repcohome.com

Registered Office :'REPCO TOWER', No: 33, North Usman Road, T.Nagar, Chennai - 600017. Phone : 044-28340715 / 4037 / 2845

Repco Home Finance Limited

Earnings Presentation February 2020

www.repcohome.com

Earnings Presentation Q3FY20



Agenda

Q3FY20 Performance

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

► Financial performance……………………………

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

Geographic Presence

► Footprint.………………………………………………..

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

Annexure



Q3FY20 Performance



• Loans outstanding (Dec 31, 2019) Rs. 1,16,249 mn

• Net worth (Dec 31, 2019) Rs. 16,376 mn

• Tier 1 capital adequacy ratio 25.4% (Provisional)

• Average loan per unit Rs. 1.45 mn

• Number of live accounts 98,723

• Current employee Strength 961

• Gross NPA (%) (Dec 31, 2019) 4.2%

• ECL provision(%) (Dec 31, 2019) 1.5%

Business Summary

4



Q3FY20 performance

12%

3,039

3,410

11%

1,190

1,318

25%

556

697

6% 15%

43,94162,307

9%

1,06,248

1,16,249

Total income Net interest income Profit after tax

TN & Pondicherry book Rest of India book Overall loan book

Figures in Rs million

Q3FY19

Q3FY20

Q3FY19

Q3FY20 50,32865,919

5



Asset book

Loan BookLoan BookSanctions and disbursementsSanctions and disbursements

Mix of loan portfolioMix of loan portfolioLoan book compositionLoan book composition


6

23,97221,25722,137

20,249

3,000

8,000

13,000

18,000

23,000

28,000

9MFY19 9MFY20

Sanctions Disbursements

1,06,248 1,16,249

20,000

40,000

60,000

80,000

1,00,000

1,20,000

1,40,000

Dec'18 Dec'19

81.6% 81.4%

18.4% 18.6%

0%

20%

40%

60%

80%

100%

Dec'18 Dec'19

Home loans Loans against property

44.9% 47.2%

55.1% 52.8%

0%

20%

40%

60%

80%

100%

Dec'18 Dec'19

Salaried Non Salaried



Net interest incomeNet interest incomeTotal incomeTotal income

Net worthNet worthNet profitNet profit


Income and earnings growth

7

8,815 9,999

-

2,000

4,000

6,000

8,000

10,000

12,000

9MFY19 9MFY20

3,529 3,826

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

9MFY19 9MFY20

1,831

2,326

500

1,000

1,500

2,000

2,500

9MFY19 9MFY20

14,687

16,376

5,000

7,000

9,000

11,000

13,000

15,000

17,000

Dec'18 Dec'19



Other opexOther opexEmployee costEmployee cost

Cost to income ratioCost to income ratio


Operating cost

8

415

469

050

100150200250300350400450500

9MFY19 9MFY20

293 290

0

50

100

150

200

250

300

350

9MFY19 9MFY20

19.7% 19.6%

0.0%

5.0%

10.0%

15.0%

20.0%

9MFY19 9MFY20



Net interest marginNet interest margin

Return on equityReturn on equity Return on assetsReturn on assets

Profitability ratios

9

SpreadSpread

4.6%4.5%

3.0%

3.2%

3.4%

3.6%

3.8%

4.0%

4.2%

4.4%

4.6%

4.8%

9MFY19 9MFY20

3.2%3.1%

2.0%

2.2%

2.4%

2.6%

2.8%

3.0%

3.2%

3.4%

9MFY19 9MFY20

18.2%20.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

9MFY19 9MFY20

2.4%2.7%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

9MFY19 9MFY20



Asset quality

90+ dpd(%)90+ dpd(%)

10

3.7%

2.9%

4.0%

3.6%3.9%

3.0%

4.2% 4.2% 4.2%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Dec'17 Mar'18 June'18 Sep'18 Dec'18 Mar'19 June'19 Sep'19 Dec'19

Gross NPA



ECL Provisioning

11


Dec'18 Sep'19 Dec'19

Gross Stage 3 4,187 4,850 4,896

% portfolio in Stage 3 3.9% 4.2% 4.2%

ECL provision - Stage 3 489 1,369 1,399

Net - Stage 3 3,698 3,481 3,497

Coverage ratio - Stage 3 12% 28% 29%

Gross Stage 1 & 2 1,02,061 1,10,110 1,11,353

% portfolio in Stage 1 & 2 96.1% 95.8% 95.8%

ECL provision - Overall 0.8% 1.4% 1.5%



Mix/Product-wise GNPA (%)

12

1.5%

6.5%

4.2%

1.5%

6.5%

4.2%

1.5%

5.8%

3.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Salaried Non-Salaried Overall


3.6%

6.7%

4.2%3.6%

6.8%

4.2%

3.2%

6.8%

3.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Housing Loan LAP Overall




Diversified borrowing profile

Source (Rs mn)Average

cost Dec'18 Dec'19 % change

National Housing Bank 7.4% 6,471 9,248 43%

Repco Bank 8.3% 7,015 7,814 11%

Commercial Banks 8.7% 66,905 74,297 11%

NCDs 8.1% 8,870 6,520 -26%

Commercial Papers 6.9% 0 0 0%

Total 8.5% 89,261 97,878 10%

13

7% 9%8% 8%

75% 76%

10% 7%

0%

20%

40%

60%

80%

100%

Dec'18 Dec'19

National Housing Bank Repco Bank

Commercial Banks NCDs

CPs



Geographic Presence



Footprint

15

Present in 12 states and 1 Union Territorywith 149 branches and 27 satellite centers.

Plus 2 asset recovery branches.

Entered the State of Rajasthan in FY20.

Presence beyond South: branches in WestBengal, Orissa, Maharashtra, Gujarat,Madhya Pradesh & Rajasthan.

Network ExpansionNetwork Expansion

88 92

122

142150 156 160

170 175 177

30

50

70

90

110

130

150

170

Ma

r'12

Ma

r'13

Ma

r'14

Ma

r'15

Ma

r'16

Ma

r'17

Ma

r'18

Ma

r'19

Sep

'19

De

c'1

9



Region-wise loan book

Annualized

5

Exposure

States Dec'18 Sep'19 Dec'19 YoY growth

QoQ growth

Andhra Pradesh 6.6% 6.4% 6.4% 5% 1%Telangana 4.5% 4.6% 4.6% 11% 7%Gujarat 3.1% 3.4% 3.6% 29% 24%Karnataka 13.6% 14.0% 14.2% 14% 10%Kerala 3.8% 3.5% 3.4% 0% -2%Maharashtra 8.0% 8.7% 9.0% 23% 21%Tamil Nadu 57.6% 56.2% 55.8% 6% 2%Others 2.8% 3.2% 3.0% 16% -25%Total 100% 100% 100% 9% 4%

Andhra Pradesh, 6.4%

Telangana, 4.6%

Gujarat, 3.6%

Karnataka, 14.2%

Kerala, 3.4%

Maharashtra, 9.0%

Tamil Nadu, 55.8%

Others, 3.0%



Annexure



Shareholding pattern

Outstanding shares – 62.6 mn

18

Major non-promoter shareholders % shareholding

India Capital Fund Limited 7.4%Franklin Templeton Mutual Fund 6.2%HDFC Mutual Fund 5.8%Aditya Birla Sun Life Mutual Fund 5.7%DSP Mutual Fund 4.4%Somerset Emerging Markets Fund 3.3%Apax Fund 2.1%SG Jokaland Holdings 1.8%AllianceBernstein Fund 1.8%ICICI Mutual Fund 1.7%Parvest Equity India 1.0%

Promoters, 37.1%

Mutual Funds, 24.7%

Bodies Corporate

s, 0.7%

Resident Individuals

, 6.2%

Foreign Portfolio Investors,

28.8%

NRIs, 0.4%

Others, 2.2%



Profit and loss statement (Standalone)

19


(Rs. million) Q3FY20 Q3FY19YoY (%) Q2FY20

QOQ (%) 9MFY209MFY19 YoY (%)

Income: Revenue from operations 3,400 3,037 12% 3,317 3% 9,999 8,815 13%Other income 10 2 499% 38 -74% 51 56 -8%

Total Income 3,410 3,039 12% 3,355 2% 10,050 8,871 13%Expenses: Interest and other financial charges 2,088 1,847 13% 2,085 0% 6,188 5,286 17%Employee benefit expense 167 147 13% 156 7% 469 415 13%Depreciation and amortization expense 35 12 190% 32 10% 97 37 161%Other expenses 73 94 -22% 62 18% 193 255 -25%Provisions & write-offs 115 182 -37% 1 8278% 191 194 -1%

Total Expenses 2,477 2,282 9% 2,336 6% 7,138 6,187 15%Profit before tax 933 757 23% 1,020 -9% 2,912 2,684 9%Tax expense:Current tax 221 247 -11% 150 48% 638 789 -19%Deferred Tax 15 -46 -132% -136 -111% -52 63 -182%Net Profit/(Loss) 697 556 25% 1,006 -31% 2,326 1,831 27%Other Comprehensive Income -1 2 -147% -2 -58% -1 5 -116%Total Comprehensive Income 696 558 25% 1,004 -31% 2,326 1,836 27%



Relative performance – Q3FY20

20

Particulars Units Q3FY19 Q3FY20

Sanctions Rs. mn 8,052 7,331

Disbursements Rs. mn 7,332 6,557

Net interest income Rs. mn 1,190 1,318

PAT Rs. mn 556 697

NIM % 4.5 4.6

Yield on assets % 11.5 11.8

Cost of funds % 8.4 8.4

Spread % 3.1 3.3

Return on assets % 2.1 2.4

Return on equity % 15.4 17.3



Relative performance – 9MFY20

21

Particulars Units 9MFY19 9MFY20

Sanctions Rs. mn 23,972 21,257

Disbursements Rs. mn 22,137 20,249

Net interest income Rs. mn 3,529 3,826

PAT Rs. mn 1,831 2,326

NIM % 4.6 4.5

Yield on assets % 11.5 11.8

Cost of funds % 8.3 8.6

Spread % 3.2 3.1

Return on assets % 2.4 2.7

Return on equity % 18.2 20.2



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 RepcoHome Finance Ltd., (RHFL), its future outlook and growth prospects. The actual results may differ materially from these forward looking statements dueto a number of risks and uncertainties which could include future changes or developments in RHFL, the competitive environment, the company’sability to implement its strategies and initiatives, respond to technological changes as well as sociopolitical, economic and regulatory conditions inIndia.

All financial data in this presentation is obtained from the audited financial statements and the various ratios are calculated based on these data. Thispresentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation or a solicitation of any offer, topurchase or sell, any shares of RHFL and should not be considered or construed in any manner whatsoever as a recommendation that any personshould subscribe for or purchase any of RHFL’s shares. None of the projection, expectations, estimates or prospects in this presentation should beconstrued as a forecast implying any indicative assurance or guarantee of future performance, nor that the assumptions on which such futureprojects, 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 toany person other than its intended recipients, and should not be reproduced in any manner whatsoever. The recipients further represents andwarrants 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 applicablelaws, (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 ofrecipient’s organisation.

Safe Harbor:

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

22

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Repco Investor... · 2020-03-03 · Kind Attn: Listing Department Dear Sir, Sub: Investor Presentation on financial results, for1 the Quarter /Nine months period ended 31 December