Repco Home Finance Limited
Earnings Presentation November 2018
www.repcohome.com
Earnings Presentation
Q2FY19
Repco Home Finance Limited
Earnings Presentation November 2018
Agenda
Q2FY19 Performance
► Business summary…………………………………………….…….
► Financial performance for Q2FY19 ……… ……………………
► Borrowing profile………………..……………….………………….
Geographic Presence
► Footprint.………………………………………………..
► Region-wise loan book.………………………………………….…
Annexure
Repco Home Finance Limited
Earnings Presentation November 2018
Q2FY19 Performance
Repco Home Finance Limited
Earnings Presentation November 2018
• 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
Repco Home Finance Limited
Earnings Presentation November 2018
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
Repco Home Finance Limited
Earnings Presentation November 2018
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
Figures in Rs million
H1FY18
H1FY19
H1FY18
H1FY19 14,80515,920
Repco Home Finance Limited
Earnings Presentation November 2018
Asset book
Loan BookSanctions and disbursements
Mix of loan portfolioLoan book composition
Figures in Rs million
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
Repco Home Finance Limited
Earnings Presentation November 2018
Net interest incomeTotal income
Net worthNet profit
Figures in Rs million
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
Repco Home Finance Limited
Earnings Presentation November 2018
Other opexEmployee cost
Cost to income ratio
Figures in Rs million
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
Repco Home Finance Limited
Earnings Presentation November 2018
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
Repco Home Finance Limited
Earnings Presentation November 2018
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
Repco Home Finance Limited
Earnings Presentation November 2018
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
Repco Home Finance Limited
Earnings Presentation November 2018
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
Repco Home Finance Limited
Earnings Presentation November 2018
Geographic Presence
Repco Home Finance Limited
Earnings Presentation November 2018
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
Repco Home Finance Limited
Earnings Presentation November 2018
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%
Repco Home Finance Limited
Earnings Presentation November 2018
Annexure
Repco Home Finance Limited
Earnings Presentation November 2018
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%
Repco Home Finance Limited
Earnings Presentation November 2018
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)
Repco Home Finance Limited
Earnings Presentation November 2018
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
Repco Home Finance Limited
Earnings Presentation November 2018
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
Repco Home Finance Limited
Earnings Presentation November 2018
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
Repco Home Finance Limited
Earnings Presentation November 2018
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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Safe Harbor:
Bala S , Investor RelationsRepco Home Finance LimitedPhone: +91 44 42106650 Email: [email protected]
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