Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May...
Transcript of Earnings Presentation Q4 & FY16 - Repco Home FY16... · 2017-04-06 · Earnings Presentation May...
Repco Home Finance Limited
Earnings Presentation May 2016
www.repcohome.com
Earnings Presentation
Q4 & FY16
Repco Home Finance Limited
Earnings Presentation May 2016
Agenda
Q4 & FY16 Performance
► Business summary…………………………………………….…….
► Financial performance for Q4 and FY16…… ………………
► Asset quality……………………………………………………….
► Diversified source of funding…………..……………………..…..
Geographic Presence
► Expanding footprint.………………………………………………..
► Region-wise loan book.………………………………………….…
Annexure
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Repco Home Finance Limited
Earnings Presentation May 2016
Q4FY16 and FY16 Performance
Repco Home Finance Limited
Earnings Presentation May 2016
• Loans outstanding (Mar 31, 2016) Rs. 76,912 mn
• Net worth (Mar 31, 2016) Rs. 9,512 mn*
• Average loan per unit Rs. 1.3 mn
• Number of live accounts 67,242
• Current Employee Strength 619
• Capital Adequacy Ratio 20.74% (Provisional)
• Gross NPA (%) (Mar 31, 2016) 1.3%
• Net NPA (%) (Mar 31, 2016) 0.5%
Business Summary
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Net worth = Paid up capital + Reserves – Intangible assets. However, NHB has started advising HFCs
to exclude Deferred Tax Assets from the calculation, in which case the Net Worth will be Rs. 9,162
mn (FY15 – Rs. 7,838 mn). This is used for all ratios involving net worth, - including CAR.
Repco Home Finance Limited
Earnings Presentation May 2016
Growth story continued in FY16
27%
6,922
8,801
28%
2,373
3,039
22%
1,231
1,501
28%
60,129
76,912
29%
23,989
30,828
31%
21,812
28,512
Income from Operations Net Interest Income Profit after Tax
Loan Book Sanctions Disbursements
Figures in Rs Million
FY15
FY16
FY15
FY16
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Repco Home Finance Limited
Earnings Presentation May 2016
Driven by strong Q4 FY16
25%
1,913
2,400
29%
662
856
21%
348
422
25%
1,915
2,403
12%
8,346
9,342
20%
7,505
8,975
Income from Operations Net Interest Income Profit after Tax
Total Income Sanctions Disbursements
Figures in Rs Million
Q4 FY15
Q4 FY16
Q4 FY15
Q4 FY16
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Repco Home Finance Limited
Earnings Presentation May 2016
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
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18,225
23,989
30,828
17,153
21,812
28,512
5,000
10,000
15,000
20,000
25,000
30,000
FY14 FY15 FY16
Sanctions Disbursements
46,619
60,129
76,912
20,000
30,000
40,000
50,000
60,000
70,000
FY14 FY15 FY16
45.0% 43.2% 41.2%
55.0% 56.8% 58.8%
0%
20%
40%
60%
80%
100%
FY14 FY15 FY16
Salaried Non Salaried
81.3% 80.8% 80.2%
18.7% 19.2% 19.8%
0%
20%
40%
60%
80%
100%
FY14 FY15 FY16
Individual home loans Loans against property
Repco Home Finance Limited
Earnings Presentation May 2016
Net interest income Income from operations
Cost to income ratio Net profit
Figures in Rs million
Driving robust income and earnings growth
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5,342
6,922
8,801
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
FY14 FY15 FY16
1,908
2,373
3,039
-
500
1,000
1,500
2,000
2,500
3,000
3,500
FY14 FY15 FY16
1,101 1,231
1,501
-
200
400
600
800
1,000
1,200
1,400
1,600
FY14 FY15 FY16
18.4%
21.0% 19.3%
0.0%
5.0%
10.0%
15.0%
20.0%
FY14 FY15 FY16
Repco Home Finance Limited
Earnings Presentation May 2016
Net interest margin
Return on average net worth Return on assets
And steady profitability ratios
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Spread
4.7% 4.5% 4.4%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
FY14 FY15 FY16
16.4% 16.1% 17.7%
0.0%
5.0%
10.0%
15.0%
20.0%
FY14 FY15 FY16
2.7%
2.3% 2.2%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
FY14 FY15 FY16
3.2%
2.9% 3.0%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
FY14 FY15 FY16
Repco Home Finance Limited
Earnings Presentation May 2016
Gross NPA Net NPA
Asset quality & provisioning
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Provision coverage ratio
Figures in Rs Million
686 791
1,009
1.47% 1.32% 1.31%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
-
200
400
600
800
1,000
1,200
FY14 FY15 FY16
Gross NPA Gross NPA %
332
298
368 0.72%
0.50%
0.48%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
-
100
200
300
400
500
FY14 FY15 FY16
Net NPA Net NPA %
51.5%
62.4% 63.5%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
FY14 FY15 FY16
Repco Home Finance Limited
Earnings Presentation May 2016
Stable asset quality
Movement in NPAs
• Stable asset quality despite material changes in loan book composition over the last 3 years; increased
exposure to LAP and non-salaried segment in pursuit of better margins, resulting in technical spikes in asset
quality
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1.5%
2.2%
1.6%
2.0%
1.5%
2.2%
1.6%
2.0%
1.3%
2.2%
1.8%
2.3%
1.3%
1.0%
1.5%
0.9%
1.3%
0.7%
1.5%
0.8%
1.2%
0.5%
1.3%
0.9%
1.4%
0.5% 0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
Gross NPA Net NPA
Repco Home Finance Limited
Earnings Presentation May 2016
Mix/Product-wise asset quality
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1.2% 1.1%
2.0%
0.8% 0.7%
1.7%
1.8%
1.5% 1.3%
2.3%
1.3%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
Mar-14 Mar-15 Dec'15 Mar'16
Housing Loan Home Equity Salaried Non-Salaried Overall
Repco Home Finance Limited
Earnings Presentation May 2016
Diversified borrowing profile
.
Source (Rs mn) Mar'15 Mar'16
National housing Bank 10,948 9,109
Repco Bank 4,014 4,963
Commercial Banks 34,482 47,307
NCDs 1,000 4,000
CPs 600 0
Total 51,044 65,379
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CPs were used to manage intra-quarter liquidity requirements in Q4FY16.
21% 14%
68%
72%
8% 8%
2% 6% 1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar'15 Mar'16
National Housing Bank Banks Repco Bank Ltd NCDs CPs
Repco Home Finance Limited
Earnings Presentation May 2016
Geographic Presence
Repco Home Finance Limited
Earnings Presentation May 2016
Expanding footprint
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Significant presence
Strong presence
Recent expansion
Presence in 11 states and 1 Union Territory
with 115 branches and 35 satellite centres
Presence beyond South: branches in West
Bengal, Orissa, Maharashtra, Gujarat,
Madhya Pradesh and Jharkhand
Focus in FY16 was to increase penetration in
existing regions, which the company was
able to achieve
Network Expansion
36 45
54
72
88 92
122
142 150
30
50
70
90
110
130
150
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Repco Home Finance Limited
Earnings Presentation May 2016
Region-wise loan book
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Exposure
Key States FY15 FY16 Andhra Pradesh & Telangana 12.2% 11.2%
Gujarat 1.5% 2.0%
Karnataka 12.2% 12.3%
Kerala 3.7% 3.8%
Maharastra 5.3% 5.7%
Tamil Nadu 62.9% 62.7%
Andhra
Pradesh,
7.7% Telangana,
3.4%
Gujarat,
2.0%
Karnataka,
12.3%
Kerala,
3.8%
Maharastra
, 5.7%
Tamil
Nadu,
62.7%
Others,
2.3%
Repco Home Finance Limited
Earnings Presentation May 2016
Annexure
Repco Home Finance Limited
Earnings Presentation May 2016
Shareholding pattern
Outstanding shares – 62.54 mn
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Promoters,
37.14%
Mutual
Funds,
18.80%
Bodies
Corporates
, 2.80% Individuals,
10.85%
Foreign
Portfolio
Investors,
28.42%
NRIs, 1.25%
Others,
0.74%
Major Non-Promoter Shareholders %
shareholding
Franklin Templeton Indiaprima Fund 4.3%
Birla Sun Life Balanced 95 Fund 4.0%
SBI Magnum Multiplier Fund 3.9%
Parvest Equity India 3.8%
India Capital Fund Limited 2.7%
Goldman Sachs India Fund Limited 2.6%
DSP Blackrock Micro Cap Fund 2.5%
Nomura India Investment Mother Fund 2.2%
TVF Fund Ltd 2.1%
GMO Emerging Domestic Opportunities Fund 1.2%
Wasatch Emerging Markets Small Cap Fund 1.2%
California Public Employees Retirement System 1.0%
Repco Home Finance Limited
Earnings Presentation May 2016
Profit and loss statement
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(Rs. million) Q4 FY16 Q4 FY15 YoY (%) Q3 FY16 QOQ
(%) FY16 FY15 YoY (%)
Income:
Revenue from operations 2,400 1,913 25% 2,253 6% 8807 6922 27%
Other Income 3 1 85% 1 198% 12 8 41%
Total Income 2,403 1,915 25% 2,255 6% 8,818 6,930 27%
Expenses:
Interest and other Financial Charges 1,456 1,168 25% 1,410 3% 5483 4318 27%
Employee benefit expense 88 105 -16% 102 -14% 409 335 22%
Depreciation and amortization expense 12 10 27% 9 37% 41 29 43%
Other expenses 53 50 6% 50 6% 192 183 5%
Provision for Non-Performing Assets 109 33 227% 65 66% 293 140 108% Contingency Provisions against Standard Assets 28 28 0% 27 4% 95 62 55%
Bad-Debts Written Off 3 1 159% 0 100% 3 1 157% Provision for diminution in value of
Investments 1 0 100% 0 100% 1 0 100%
Total Expenses 1,749 1,395 25% 1,663 5% 6,518 5,068 29%
Profit before tax 650 520 25% 591 10% 2301 1862 24%
Tax expense:
Current tax 187 156 20% 198 -6% 742 559 33%
Deferred Tax 40 16 150% 7 520% 58 72 -19%
Net Profit 422 348 21% 386 9% 1501 1231 22%
Repco Home Finance Limited
Earnings Presentation May 2016
Balance sheet
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(Rs. million) As on Mar 31, 2016 As on Mar 31, 2015 EQUITY AND LIABILITIES: Shareholder's Funds 9,548 8,121 Share Capital 625 624 Reserves and Surplus 8,923 7,497
Non-Current Liabilities 51,676 39,902 Long-term borrowings 50,252 38,797 Deferred Tax Liability 400 342 Long term provisions 1,024 762 Current Liabilities 16,408 12,734 Short-term borrowings 4,970 4,848 Other current liabilities 11,244 7,750
Short-term provisions 194 136
Total 77,632 60,757 ASSETS: Non-current assets 72,247 56,488 Fixed assets
Tangible assets 72 70 Intangible assets 21 19 Non-current investments 124 124 Long term loans and advances 72,030 56,275 Current assets 5,385 4,269 Cash and Bank Balances 200 175
Short-term loans and advances 5,019 3,954 Other current assets 166 139
Total 77,632 60,757
Repco Home Finance Limited
Earnings Presentation May 2016
Key metrics
Key Ratios March'14
March‘15
March‘16
Yield 12.6% 12.5% 12.4%
Cost of Debt 9.3% 9.6% 9.4%
Spread 3.2% 2.9% 3.0%
NIM 4.7% 4.5% 4.4%
Cost to Income 18.4% 21.0% 19.3%
Return on Assets 2.7% 2.3% 2.2%
Return on Equity 16.4% 16.1% 17.7%
Gross NPA 1.5% 1.3% 1.3%
Net NPA 0.7% 0.5% 0.5%
Provision Coverage 51.5% 62.4% 63.5%
CAR 24.5% 20.3% 20.7%
Outstanding loan book (% break up)
- Non Salaried 55.0% 56.8% 58.8%
- Salaried 45.0% 43.2% 41.2%
- Individual Home Loans 81.3% 80.8% 80.2%
- Loans against Property 18.7% 19.2% 19.8%
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Repco Home Finance Limited
Earnings Presentation May 2016
Key metrics
Key metrics (Annualized ) Q4FY15
Q3FY16 Q4FY16
Yield 12.7% 12.5% 12.2%
Cost of Debt 9.6% 9.4% 9.2%
Spread 3.1% 3.1% 3.0%
NIM 4.6% 4.5% 4.6%
ROAA 2.4% 2.2% 2.3%
ROANW 17.4% 17.1% 18.7%
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Repco Home Finance Limited
Earnings Presentation May 2016
Historical performance at a glance
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Particulars Units FY12 FY13 FY14 FY15 FY16 CAGR
Outstanding Loan Book Rs mn 28,041 35,448 46,619 60,129 76,912 29%
Sanctions Rs mn 11,116 12,848 18,225 23,989 30,828 29%
Disbursements Rs mn 10,423 11,674 17,153 21,812 28,512 29%
Income from Operations Rs mn 3,188 4,057 5,342 6,922 8,801 29%
Net Interest Income Rs mn 1,032 1,256 1,908 2,373 3,039 31%
PAT Rs mn 615 800 1,101 1,231 1,501 25%
Networth Rs mn 2,953 6,233 7,193 8,102 9,512 34%
Debt Rs mn 24,860 30,647 39,020 51,044 65,379 27%
Ratios
NIM % 4.2 4.0 4.7 4.5 4.4
Gross NPA % 1.4 1.5 1.5 1.3 1.3
Net NPA % 1.0 1.0 0.7 0.5 0.5
ROAA % 2.5 2.5 2.7 2.3 2.2
ROANW % 22.8 17.4 16.4 16.1 17.7
CRAR % 16.5 25.5 24.5 20.3 20.7
Repco Home Finance Limited
Earnings Presentation May 2016
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 .
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recipient’s organisation.
Safe Harbor:
V. Raghu, Executive Director/ Bala , Investor Relations Repco Home Finance Limited Phone: +91 44 42106650 Email: [email protected]
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