Earnings Presentation Q4 & FY15 - Repco Home FY15 Earnings... · Earnings Presentation Q4 & FY15 ....

Repco Home Finance Limited

Earnings Presentation May 2015

www.repcohome.com

Earnings Presentation

Q4 & FY15



Agenda

Q4 & FY15 Performance

► Business summary…………………………………………….……..04

► Financial performance for Q4 and FY15…… ………………5-11

► Diversified source of funding…………..……………………..…..12

Geographic Presence

► Expanding footprint.………………………………………………..14

► Region-wise loan book.………………………………………….…15

Annexure

2



Q4FY15 and FY15 Performance



• Loans outstanding (Mar 31, 2015) Rs. 60,129 mn

• Net worth (Mar 31, 2015) Rs. 8,057 mn

• Average loan per unit Rs. 1.2 mn

• Number of live accounts 57,415

• Current Employee Strength 545

• Cost to Income ratio 21.0%

• Capital Adequacy Ratio 20.3% (Provisional)

• Gross NPA (%) (Mar 31, 2015) 1.3%

• Net NPA (%) (Mar 31, 2015) 0.5%

Business Summary

4



Robust growth in FY15

30%

5,342

6,922

24%

1,908

2,373

25%

1,101

1,373

29%

46,619

60,129

32%

18,225

23,989

27%

17,153

21,812

Income from Operations Net Interest Income Pre DTL Profit after Tax

Loan Book Sanctions Disbursements

Figures in Rs Million

FY14

FY15

FY14

FY15

Post DTL Net Profit growth of 12% to Rs. 1,231 mn

5



Driven by strong Q4 FY15

28%

1,498

1,913

23%

539

662

24%

315

389

11%

315

348

55%

5,376

8,346

47%

5,120

7,505

Income from Operations Net Interest Income Pre DTL Profit after Tax

Post DTL Profit after Tax Sanctions Disbursements


Q4 FY14

Q4 FY15

Q4 FY14

Q4 FY15

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

12,848

18,225

23,989

11,674

17,153

21,812

5,000

10,000

15,000

20,000

FY13 FY14 FY15

Sanctions Disbursements

35,447

46,619

60,129

20,000

30,000

40,000

50,000

60,000

FY13 FY14 FY15

46.9% 45.0% 43.2%

53.1% 55.0% 56.8%

0%

20%

40%

60%

80%

100%

FY13 FY14 FY15

Salaried Non Salaried

85.1% 81.3% 80.8%

14.9% 18.7% 19.2%

0%

20%

40%

60%

80%

100%

FY13 FY14 FY15

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

4,055

5,342

6,922

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY13 FY14 FY15

1,256

1,908

2,373

-

500

1,000

1,500

2,000

2,500

FY13 FY14 FY15

800

1,101

1,231

-

200

400

600

800

1,000

1,200

1,400

FY13 FY14 FY15

17.4% 18.4%

21.0%

0.0%

5.0%

10.0%

15.0%

20.0%

FY13 FY14 FY15

Excluding

ESOP

charge, the

cost to

income

ratio will be

FY14–17.4%

FY15-18.5%



Net interest margin

Return on average net worth Return on assets

And steady profitability ratios

9

Spread

4.0%

4.7% 4.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

FY13 FY14 FY15

2.8%

3.2% 2.9%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

FY13 FY14 FY15

17.4% 16.4% 16.1%

0.0%

5.0%

10.0%

15.0%

20.0%

FY13 FY14 FY15

2.5% 2.7%

2.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

FY13 FY14 FY15

Using Pre-

DTL profit

figure the

ROA will

be 2.6%

Using

Pre-DTL

profit

figure

the

ROE will

be

~17.8%



Gross NPA Net NPA

Increased focus on asset quality & provisioning

10

Provision coverage ratio

525 686

791

1.48% 1.47%

1.32%

0.30%

0.50%

0.70%

0.90%

1.10%

1.30%

1.50%

-

200

400

600

800

1,000

FY13 FY14 FY15

Gross NPA Gross NPA %

348 332 298

0.99%

0.72%

0.50%

0.40%

0.60%

0.80%

1.00%

1.20%

-

100

200

300

400

500

FY13 FY14 FY15

Net NPA Net NPA %

33.7%

51.5%

62.4%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

FY13 FY14 FY15




Sustainable improvement in asset quality

Movement in NPAs

• Owing to seasonality, Q1 & Q3 GNPAs are generally higher than Q2 & Q4 GNPAs

• With strong focus on recoveries, there has been a steady improvement in asset quality

• Improvement in asset quality despite material changes in loan book composition over the last 2 years;

increased exposure to LAP and non-salaried segment in pursuit of better margins

• On course towards the ultimate target of 0.0% Net NPAs

11

1.4%

2.6%

2.1%

2.9%

1.5%

2.2%

1.6%

2.0%

1.5%

2.2%

1.6%

2.0%

1.3%

1.0%

2.0%

1.6%

2.3%

1.0%

1.5%

0.9%

1.3%

0.7%

1.5%

0.8%

1.2%

0.5% 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 March 31, 2015) Amount

Banks 34,482

National Housing Bank 10,948

Repco Bank Ltd 4,014

Non Convertible Debentures (NCDs) 1,000

Commercial Papers (CPS) 600

Total 51,044


12

25% 21%

65% 68%

10% 8% 2% (NCDs) 1% (CPs)

0%

20%

40%

60%

80%

100%

Mar'14 Mar'15

National Housing Bank Banks

Repco Bank Ltd Non Covertible Debuntures

Commercial Papers

1. Commercial papers will offset Repco Bank borrowings to some extent 2. In a falling interest rate scenario, NCDs to dominate incremental borrowings

(constrained by approved NCD borrowing limits) 3. Company now eligible to borrow through the ECB route



Geographic Presence



Expanding footprint

14

Significant presence

Strong presence

Recent expansion

FY15 expansion

Presence in 11 states (including Telangana) and 1

Union Territory with 106 branches and 36 satellite

centres

Ventured into Jharkhand in FY15

Presence beyond South: branches in West Bengal,

Orissa, Maharashtra, Gujarat, Madhya Pradesh and

Jharkhand

Network Expansion

36 45

54

72

88 92

122

142

30

50

70

90

110

130

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15



Region-wise loan book – not just a south India based company

15

Andhra

Pradesh,

8.7%

Telangana,

3.4%

Gujarat,

1.5%

Karnataka,

12.2%

Kerala, 3.7%

Maharastra,

5.3%

Tamil Nadu,

62.9%

Others, 2.2% Exposure

Key regional presence FY14 FY15

Andhra Pradesh & Telangana 13.9% 12.2%

Gujarat 0.3% 1.5%

Karnataka 12.0% 12.2%

Kerala 3.7% 3.7%

Maharashtra 4.0% 5.3%

Tamil Nadu 63.3% 62.9%

Others 2.8% 2.2%

Total 100.0% 100.0%


Earnings Presentation May 2015 16

Annexure



Shareholding pattern

Outstanding shares – 62.36 mn

Promoters,

37.25%

Mutual

Funds,

15.24%

Bodies

Corporates

, 3.86%

Individuals,

12.00%

FIIs, 29.38%

NRIs, 1.47%

Others,

0.80%

Major Non-Promoter Shareholders %

shareholding

Smallcap World Fund, Inc 6.33%

Parvest Equity India 3.26%

India Capital Fund Limited 3.09%

Goldman Sachs India Fund Limited 2.22%

Nomura India Investment Fund Mother Fund 1.99%

Franklin Templeton Mutual Fund - Indiaprima 1.93%

TVF Fund Ltd 1.59%

Jupiter India Fund 1.44%

DSP Blackrock Micro Cap Fund 1.30%

GMO Emerging Domestic Opportunities Fund 1.28%

Franklin India Smaller Companies Fund 1.18%

SBI Magnum Global Fund 1.12%

17



Profit and loss statement

18

(Rs. million)

Q4

FY15

Q4

FY14 YoY (%)

Q3

FY15

QOQ

(%) FY15 FY14

YoY

(%)

Income:

Revenue from operations 1,913 1,498 28% 1,756 9% 6922 5341 30%

Other Income 1 1 0 1 31% 8 12 -31%

Total Income 1,915 1,499 28% 1,757 9% 6,930 5,353 29%

Expenses:

Interest and other Financial Charges 1,168 909 29% 1,120 4% 4318 3247 33%

Employee benefit expense 105 69 54% 85 24% 335 211 59%

Depreciation and amortization expense 10 7 47% 7 32% 29 24 22%

Other expenses 50 46 9% 50 1% 183 153 19%

Provision for Non-Performing Assets 33 25 31% 17 100% 140 176 -20%

Contingency Provisions against

Standard Assets 28 15 85% 10 191% 62 47 31%

Provision for diminution in value of

Investments 0 1 -100% 0 0% 0 1 -100%

Bad-Debts Written Off 1 0 0% 0 0% 1 3 -54%

Total Expenses 1,395 1,070 30% 1,288 8% 5,068 3,862 31%

Profit before tax 520 429 21% 469 11% 1862 1491 25%

Tax expense:

Current tax 156 128 22% 134 16% 559 465 20%

Deferred Tax -25 -14 77% -6 340% -71 -75

Pre DTL Profit 390 315 24% 340 14% 1373 1101 25%

DTL charged as per NHB directive 41 0 100% 33 26% 142 0 100%

Post DTL Net Profit/(Loss) 348 315 11% 307 13% 1231 1101 12%



Balance sheet

19

(Rs. million) As on Mar 31, 2015 As on Mar 31, 2014 EQUITY AND LIABILITIES: Shareholder's Funds 8,121 7,381

Share Capital 624 622 Reserves and Surplus 7,497 6,760 Non-Current Liabilities 39,560 29,666 Long-term borrowings 38,797 29,108 Long term provisions 762 557 Current Liabilities 12,734 10,314

Short-term borrowings 4,848 3,977 Other current liabilities 7,750 6,232 Short-term provisions 136 105 Deferred Tax Liabilities (Net) 342 0

Total 60,757 47,361

ASSETS: Non-current assets 56,492 43,997 Fixed assets Tangible assets 70 48 Intangible assets 19 2 Non-current investments 124 124 Deferred tax assets (net) 0 187 Long term loans and advances 56,279 43,637

Current assets 4,265 3,364 Cash and Bank Balances 175 219 Short-term loans and advances 3,942 3,044 Other current assets 148 101

Total 60,757 47,361



Key metrics

Key Ratios

March‘15

March'14 March'13

Yield 12.5% 12.6% 12.3%

Cost of Debt 9.6% 9.3% 9.6%

Spread 2.9% 3.2% 2.8%

NIM 4.5% 4.7% 4.0%

Cost to Income 21.0% 18.4% 17.3%

Return on Assets 2.3% 2.7% 2.5%

Return on Equity 16.1% 16.4% 17.4%

Gross NPA 1.3% 1.5% 1.5%

Net NPA 0.5% 0.7% 1.0%

Provision Coverage 62.4% 51.5% 33.7%

CAR 20.3% 24.5% 25.5%

Outstanding loan book (% break up)

- Non Salaried 56.8% 55.0% 53.1%

- Salaried 43.2% 45.0% 46.9%

- Individual Home Loans 80.8% 81.3% 85.1%

- Loans against Property 19.2% 18.7% 14.9%

20



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

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