Earnings Presentation Q2FY19 - Repco Home Finance...Repco Home Finance Limited Earnings Presentation November 2018 Total income Net interest income Net profit Net worth Figures in

Repco Home Finance Limited

Earnings Presentation November 2018

www.repcohome.com

Earnings Presentation

Q2FY19



Agenda

Q2FY19 Performance

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

► Financial performance for Q2FY19 ……… ……………………

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

Geographic Presence

► Footprint.………………………………………………..

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

Annexure



Q2FY19 Performance



• Loans outstanding (Sep 30, 2018) Rs. 1,03,820 mn

• Net worth (Sep 30, 2018) Rs. 14,310 mn

• Tier 1 capital adequacy ratio 23.70% (IGAAP, Provisional)

• Average loan per unit Rs. 1.4 mn

• Number of live accounts 87,110

• Current Employee Strength 880

• Gross NPA (%) (Sep 30, 2018) 3.6%

• Expected credit loss (%) (Sep 30, 2018) 0.69% (Sep’17 – 0.70%)

Business Summary

4



Q2FY19 performance

9%

7,645

8,340

3%

7,525

7,766

13%

75,129

84,829

5% 21%

34,80758,404

11%

93,212

1,03,820

Sanctions Disbursements Home loan book

TN & Pondicherry book Rest of India book Overall loan book

Figures in Rs million

Q2FY18

Q2FY19

Q2FY18

Q2FY19 42,21361,607

5



H1FY19 performance

4%

5,581

5,778

2%

2,220

2,258

1%

1,260

1,275

15% 14%

13,00713,842

11%

93,212

1,03,820

Operating income Net Interest Income Profit after Tax

Sanctions Disbursements Loan book


H1FY18

H1FY19

H1FY18

H1FY19 14,80515,920



Asset book

Loan BookSanctions and disbursements

Mix of loan portfolioLoan book composition


7

13,842

15,920

13,00714,805

3,000

5,000

7,000

9,000

11,000

13,000

15,000

17,000

H1FY18 H1FY19

Sanctions Disbursements

93,212 1,03,820

20,000

40,000

60,000

80,000

1,00,000

Sep'17 Sep'18

40.0% 44.0%

60.0% 56.0%

0%

20%

40%

60%

80%

100%

Sep'17 Sep'18

Salaried Non Salaried

80.6% 81.7%

19.4% 18.3%

0%

20%

40%

60%

80%

100%

Sep'17 Sep'18

Home loans Loans against property



Net interest incomeTotal income

Net worthNet profit


Income and earnings growth

8

5,605 5,832

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

H1FY18 H1FY19

2,220 2,258

500

1,000

1,500

2,000

2,500

H1FY18 H1FY19

1,260 1,275

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

H1FY18 H1FY19

12,131

14,310

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

15,000

Sep'17 Sep'18



Other opexEmployee cost

Cost to income ratio


Operating cost

9

235

267

0

50

100

150

200

250

300

H1FY18 H1FY19

120

187

0

20

40

60

80

100

120

140

160

180

200

H1FY18 H1FY19

15.1%

19.0%

0.0%

5.0%

10.0%

15.0%

20.0%

H1FY18 H1FY19



Net interest margin

Return on equity Return on assets

Profitability ratios

10

Spread

4.9%

4.5%

3.0%

3.5%

4.0%

4.5%

5.0%

H1FY18 H1FY19

3.4%

3.1%

2.0%

2.2%

2.4%

2.6%

2.8%

3.0%

3.2%

3.4%

3.6%

3.8%

H1FY18 H1FY19

2.8%

2.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

H1FY18 H1FY19

21.0%19.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

H1FY18 H1FY19



Asset quality

90+ dpd(%)

11

2.4%

4.2%

2.6%

4.0%

3.4%

3.7%

2.9%

4.0%

3.6%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

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

Gross NPA



Mix/Product-wise GNPA (%)

12

1.4%

5.3%

3.6%

1.5%

5.6%

4.0%

1.7%

4.6%

3.4%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Salaried Non-Salaried Overall

Sep'18 June'18 Sep'17

2.9%

6.2%

3.6%3.0%

6.8%

4.0%

3.0%

5.2%

3.4%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Housing Loan LAP Overall

Sep'18 June'18 Sep'17



Diversified borrowing profile

Source (Rs mn)Average

costSep'17 Sep'18

% change

National Housing Bank

7.6% 10,536 6,858 -35%

Repco Bank 8.2% 4,982 6,537 31%

Commercial Banks 8.4% 43,243 60,407 40%

NCDs 8.3% 14,370 8,853 -38%

CPs 7.9% 5,000 4,500 -10%

Total 8.3% 78,125 87,154 12%

*Weighted average cost

13

13% 8%

6%8%

55% 69%

18%10%

6% 5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sep'17 Sep'18

National Housing Bank Repco Bank

Commercial Banks NCDs

CPs



Geographic Presence



Footprint

15

Significant presence

Strong presence

Recent expansion

Presence in 11 states and 1 Union Territory

with 141 branches and 24 satellite centers.

Presence beyond South: branches in West

Bengal, Orissa, Maharashtra, Gujarat,

Jharkhand and Madhya Pradesh.

Network Expansion

Strong Presence

Significant Presence

Recent Expansion

Not present yet 54

72

88 92

122

142150

156 160 165

30

50

70

90

110

130

150

170

Ma

r'10

Ma

r'11

Ma

r'12

Ma

r'1

3

Ma

r'14

Ma

r'15

Ma

r'16

Ma

r'17

Ma

r'18

Se

p'1

8



Region-wise loan book

16

Annualized

Exposure

States Sep'18 June'18 Sep'17YoY growth

QoQ growth

Andhra Pradesh 6.7% 6.8% 6.9% 9% 8%

Telangana 4.4% 4.3% 3.9% 26% 21%

Gujarat 2.8% 2.6% 2.2% 40% 41%

Karnataka 13.3% 13.1% 12.0% 24% 20%

Kerala 3.8% 3.9% 3.9% 9% 2%

Maharashtra 7.8% 7.6% 7.0% 25% 22%

Tamil Nadu (ex. Pondicherry) 58.4% 58.9% 61.5% 6% 8%

Total 100% 100% 100% 11% 11%

Andhra Pradesh,

6.7%Telangana, 4.4%

Gujarat, 2.8%

Karnataka, 13.3%

Kerala, 3.8%

Maharashtra, 7.8%

Tamil Nadu,

58.4%

Others, 2.6%



Annexure



Shareholding pattern

Outstanding shares – 62.56 mn

18

Major non-promoter shareholders %

shareholding

The Pabrai Funds 6.2%

DSP Blackrock Mutual Fund 6.0%

Aditya Birla Mutual Fund 6.0%

Franklin Templeton Mutual Fund 5.8%

India Capital Fund Limited 3.9%

Alliance Bernstein Funds 2.9%

Apax Global Fund 2.1%

HSBC Global Investment Funds 1.5%

DSP Core Fund 1.1%

Sanford C. Bernstein Fund, Inc. 1.1%

Promoters,

37.1%

Mutual

Funds,

18.2%

Bodies

Corporate

s, 1.5%

Resident

Individuals

, 9.7%

Foreign

Portfolio

Investors,

29.4%

NRIs, 1.2%

Others,

2.8%



Profit and loss statement

19

(Rs. million) Q2FY19 Q2FY18 YoY (%) Q1FY19 QOQ (%) H1FY19 H1FY18 YoY (%)

Income:

Revenue from operations 2,909 2,843 2% 2,869 1% 5,778 5,581 4%

Other income 51 22 138% 3 1854% 54 24 128%

Total Income 2,960 2,864 3% 2,872 3% 5,832 5,605 4%

Expenses:

Interest and other financial charges 1,755 1,626 8% 1,684 4% 3,438 3,256 6%

Employee benefit expense 138 126 9% 130 6% 267 235 14%

Depreciation and amortization expense 15 8 83% 10 40% 25 16 60%

Other expenses 83 53 56% 79 6% 162 105 55%

Provisions & write-offs -35 -8 340% 47 -174% 12 80 -85%

Total Expenses 1,956 1,806 8% 1,949 0% 3,905 3,691 6%

Profit before tax 1,004 1,059 -5% 923 9% 1,927 1,914 1%

Tax expense:

Current tax 268 273 -2% 274 -2% 542 514 6%

Deferred Tax 70 85 -17% 39 78% 110 140 -22%

Net Profit/(Loss) 666 701 -5% 609 9% 1,275 1,260 1%

Other Comprehensive Income 4 6 -38% 0 3 2 48%

Total Comprehensive Income 670 707 -5% 609 10% 1,278 1,262 1%

Note –Other expenses pertaining to H1FY19 include,

(a) Rs. 27.5 mn of fee paid to DSAs & KYC consultants. The same has been charged to P&L upfront ; not amortized. (H1FY18– nil)

(b) Rs. 11 mn of Sarfaesi charges. The same will be recovered from borrowers in the course of time. (H1FY18 –negligible)



Balance Sheet

20

(Rs. million) As on Sep 30, 2018 As on Sep 30, 2017

EQUITY AND LIABILITIES:

Shareholder's Funds 14,987 12,747

Share Capital 626 626

Reserves and Surplus 14,362 12,122

Non-Current Liabilities 63,275 55,124

Long-term borrowings 61,570 53,523

Deferred Tax Liabilities (Net) 885 794

Other long term liablities 103 83

Long term provisions 716 724

Current Liabilities 26,913 26,221

Short-term borrowings 12,597 11,490

Other current liabilities 14,178 14,570

Short-term provisions 138 162

Total 1,05,175 94,092

ASSETS:

Non-current assets 96,798 86,311

Fixed assets

Tangible assets 130 72

Intangible assets 19 16

Non-current investments 220 156

Long term loans and advances 96,408 86,044

Other non current assets 21 23

Current assets 8,378 7,781

Cash and Bank Balances 771 316

Short-term loans and advances 6,468 6,483

Other current assets 1,139 982

Total 1,05,175 94,092



Relative performance – Q2FY19

21

Particulars Units Q2FY18 Q2FY19

Sanctions Rs. Mn 7,645 8,340

Disbursements Rs. Mn 7,525 7,766

Net interest income Rs. Mn 1,164 1,115

PAT Rs. Mn 701 666

NIM % 4.6 4.4

Yield on assets % 11.7 11.2

Cost of funds % 8.5 8.2

Spread % 3.2 3.0

Return on assets % 3.0 2.6

Return on equity % 23.5 19.4



Relative performance – H1FY19

22

Particulars Units H1FY18 H1FY19

Sanctions Rs. Mn 13,842 15,920

Disbursements Rs. Mn 13,007 14,805

Net interest income Rs. Mn 2,220 2,258

PAT Rs. Mn 1,260 1,275

NIM % 4.9 4.5

Yield on assets % 12.0 11.3

Cost of funds % 8.6 8.2

Spread % 3.4 3.1

Return on assets % 2.8 2.5

Return on equity % 21.0 19.0



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]

23

mailto:[email protected]

Documents

Earnings Presentation Q2FY19 - Repco Home Finance...Repco Home Finance Limited Earnings Presentation November 2018 Total income Net interest income Net profit Net worth Figures in