Repco Home Finance Limited Earnings Presentation Q3FY19 www.repcohome.com Earnings Presentation February 2019
Agenda Repco Home Finance Limited Q3FY19 Performance Business summary …………………………………………….……. ► Financial performance for Q3FY19 …………………………… ► Borrowing profile………………..……………….…………………. ► Geographic Presence Footprint.……………………………………………….. ► Region- wise loan book.………………………………………….… ► Annexure Earnings Presentation February 2019
Repco Home Finance Limited Q3FY19 Performance Earnings Presentation February 2019
Business Summary Repco Home Finance Limited Loans outstanding (Dec 31, 2019) Rs. 1,06,668 mn • Net worth (Dec 31, 2019) Rs. 14,687 mn • Tier 1 capital adequacy ratio 24.2% (Provisional) • Average loan per unit Rs. 1.4 mn • Number of live accounts 89,212 • Current Employee Strength 925 • Gross NPA (%) (Dec 31, 2019) 3.9% • Expected credit loss (%) (Dec 31, 2019) 0.8% • 4 Earnings Presentation February 2019
Q3FY19 performance Repco Home Finance Limited Figures in Rs million Sanctions Disbursements Profit after tax Q3FY19 556 8,052 7,332 4% 12% 31% Q3FY18 7,725 6,571 424 TN & Pondicherry book Rest of India book Overall loan book 62,508 43,023 Q3FY19 1,06,668 6% 12% 23% Q3FY18 58,715 35,113 94,904 5 Earnings Presentation February 2019
9MFY19 performance Repco Home Finance Limited Figures in Rs million Operating Income Net Interest Income Profit after Tax 9MFY19 1,831 8,815 3,410 6% 4% 9% 9MFY18 3,285 1,684 8,324 Sanctions Disbursements Loan book 23,972 22,137 9MFY19 1,06,668 12% 13% 11% 9MFY18 94,904 21,567 19,579 6 Earnings Presentation February 2019
Trends in sanctions and disbursements Repco Home Finance Limited Figures in Rs million 9,000 8,052 7,725 8,000 7,332 6,571 7,000 6,290 5,974 6,000 5,243 5,018 4,750 4,537 5,000 4,427 4,403 4,000 3,000 2,000 1,000 - Q3FY14 Q3FY15 Q3FY16 Q3FY17 Q3FY18 Q3FY19 Sanctions Disbursements Business performance strong even amid sticky State specific factors and pervasive liquidity crisis. 7 Earnings Presentation February 2019
Asset book Repco Home Finance Limited Figures in Rs million Sanctions and disbursements Loan Book 28,000 1,06,668 23,972 94,904 21,567 1,00,000 23,000 22,137 19,579 18,000 80,000 13,000 60,000 8,000 40,000 3,000 9MFY18 9MFY19 20,000 Dec'17 Dec'18 Sanctions Disbursements Loan book composition Mix of loan portfolio 100% 100% 18.9% 18.4% 80% 80% 55.1% 59.2% 60% 60% 40% 81.6% 40% 81.1% 44.9% 20% 40.8% 20% 0% 0% Dec'17 Dec'18 Dec'17 Dec'18 Salaried Non Salaried Home loans Loans against property 8 Earnings Presentation February 2019
Income and earnings growth Repco Home Finance Limited Figures in Rs million Total income Net interest income 10,000 4,000 8,871 3,410 8,351 9,000 3,285 3,500 8,000 3,000 7,000 6,000 2,500 5,000 2,000 4,000 1,500 3,000 2,000 1,000 1,000 500 - 9MFY18 9MFY19 9MFY18 9MFY19 Net profit Net worth 1,831 1,900 17,000 1,684 1,700 14,687 15,000 1,500 Net worth 13,000 amount is per 1,300 11,448 IND AS and 11,000 provisional in 1,100 nature 9,000 900 700 7,000 500 5,000 9MFY18 9MFY19 Dec'17 Dec'18 9 Earnings Presentation February 2019
Operating cost Repco Home Finance Limited Figures in Rs million Employee cost Other opex 350 450 415 293 300 373 400 250 350 200 300 200 250 150 200 150 100 100 50 50 0 0 9MFY18 9MFY19 9MFY18 9MFY19 Cost to income ratio 19.7% 20.0% 16.5% 15.0% 10.0% 5.0% 0.0% 9MFY18 9MFY19 10 Earnings Presentation February 2019
Profitability ratios Repco Home Finance Limited Net interest margin Spread 4.7% 3.3% 3.4% 4.8% 4.6% 3.2% 4.4% 3.0% 4.4% 3.0% 4.2% 2.8% 4.0% 3.8% 2.6% 3.6% 2.4% 3.4% 3.2% 2.2% 3.0% 2.0% 9MFY18 9MFY19 9MFY18 9MFY19 Return on equity Return on assets 3.0% 18.7% 18.7% 20.0% 2.4% 2.4% 2.5% 15.0% 2.0% 1.5% 10.0% 1.0% 5.0% 0.5% 0.0% 0.0% 9MFY18 9MFY19 9MFY18 9MFY19 11 Earnings Presentation February 2019
Asset quality Repco Home Finance Limited 90+ dpd(%) 5.0% 4.5% 4.2% 4.0% 4.0% 3.9% 4.0% 3.7% 3.6% 3.4% 3.5% 2.9% 3.0% 2.6% 2.5% 2.0% Dec-16 Mar-17 Jun-17 Sep'17 Dec'17 Mar'18 June'18 Sep'18 Dec'18 Gross NPA 12 Earnings Presentation February 2019
Mix/Product-wise GNPA (%) Repco Home Finance Limited 7.0% 5.8% 6.0% 5.3% 5.1% 5.0% 3.9% 3.7% 3.6% 4.0% 3.0% 1.7% 2.0% 1.5% 1.4% 1.0% 0.0% Salaried Non-Salaried Overall Dec'18 Sep'18 Dec'17 8.0% 6.8% 7.0% 6.2% 5.9% 6.0% 5.0% 3.9% 3.7% 3.6% 4.0% 3.2% 3.2% 2.9% 3.0% 2.0% 1.0% 0.0% Housing Loan LAP Overall Dec'18 Sep'18 Dec'17 13 Earnings Presentation February 2019
Diversified borrowing profile Repco Home Finance Limited Average % 100% Source (Rs mn) Dec'17 Dec'18 7% 10% cost* change 18% 80% National Housing Bank 7.5% 9,979 6,471 -35% 60% 75% 54% Repco Bank 8.2% 6,199 7,015 13% 40% 20% Commercial Banks 8.6% 42,903 66,906 56% 8% 8% 13% 7% 0% NCDs 8.3% 14,370 8,870 -38% Dec'17 Dec'18 National Housing Bank Repco Bank CPs N.A 5,500 0 -100% Commercial Banks NCDs Total 8.5% 78,952 89,261 13% CPs Note – 1.The company has executed necessary documents with NHB earlier this month pertaining to the refinance line of Rs. 5,000 mn sanctioned by the latter during Q2FY19 and should be in a position to make a drawdown on the aforementioned line in Q4FY19. 2. *Weighted average cost as at the BS date. 14 Earnings Presentation February 2019
Repco Home Finance Limited Geographic Presence Earnings Presentation February 2019
Footprint Repco Home Finance Limited Presence in 11 states and 1 Union Territory with 143 branches and 24 satellite centers. Presence beyond South: branches in West Bengal, Orissa, Maharashtra, Gujarat and Madhya Pradesh. Network Expansion Strong presence Significant presence Recent expansion Not present yet 16 Earnings Presentation February 2019
Region-wise loan book Repco Home Finance Limited Others, Andhra Pradesh, 6.6% 2.9% Telangana, 4.5% Gujarat, 3.0% Karnataka, 13.5% Tamil Nadu, Kerala, 3.8% 57.6% Maharashtra, 8.1% Annualized Exposure YoY QoQ States Dec'18 Sep'18 Dec'17 growth growth Andhra Pradesh 6.6% 6.7% 6.8% 9% 4% Telangana 4.5% 4.4% 4.0% 27% 22% Gujarat 3.0% 2.8% 2.4% 45% 42% Karnataka 13.5% 13.3% 12.2% 24% 17% Kerala 3.8% 3.8% 3.9% 7% 3% Maharashtra 8.1% 7.8% 7.2% 25% 23% Tamil Nadu 57.6% 58.4% 60.7% 6% 5% Others 2.9% 2.6% 2.6% 24% 58% Total 100% 100% 100% 12% 11% 7 Earnings Presentation February 2019
Repco Home Finance Limited Annexure Earnings Presentation February 2019
Shareholding pattern Repco Home Finance Limited % Outstanding shares – 62.56 mn Major non-promoter shareholders shareholding Aditya Birla Mutual Fund 7.1% Franklin Templeton Mutual Fund 6.8% Bodies Resident India Capital Fund Limited 5.5% Corporate Individuals, s, 1.7% DSP Mutual Fund 5.0% 10.4% HDFC Mutual Fund 4.2% Mutual Apax Global Fund 2.1% Funds, Alliance Bernstein Holding 3.1% 24.9% DSP Core Fund 1.1% Foreign Portfolio Investors, 21.4% NRIs, 1.6% Promoters, 37.1% Others, 2.9% 19 Earnings Presentation February 2019
Profit and loss statement Repco Home Finance Limited Figures in Rs million Particulars Q3FY19 Q3FY18YoY (%) Q2FY19 QOQ (%) 9MFY19 9MFY18 YoY (%) Income: Revenue from operations 3,037 2,743 11% 2,909 4% 8,815 8,324 6% Other income 2 3 -39% 51 -97% 56 26 111% Total Income 3,039 2,746 11% 2,960 3% 8,871 8,351 6% Expenses: Interest and other financial charges 1,848 1,621 14% 1,755 5% 5,286 4,877 8% Employee benefit expense 147 138 7% 138 7% 415 373 11% Depreciation and amortization expense 12 7 63% 15 -17% 37 23 61% Other expenses 94 72 29% 83 12% 256 177 44% Provisions & write-offs 182 265 -31% -35 -627% 194 345 -44% Total Expenses 2,282 2,103 9% 1,956 17% 6,187 5,795 7% Profit before tax 757 642 18% 1,004 -25% 2,684 2,556 5% Tax expense: Current tax 247 261 -5% 268 -8% 789 774 2% Deferred Tax -46 -43 9% 70 -166% 63 98 -35% Net Profit/(Loss) 556 424 31% 666 -16% 1,831 1,684 9% Other Comprehensive Income 2 -1 -381% 4 -52% 5 2 206% Total Comprehensive Income 558 423 32% 670 -17% 1,836 1,686 9% 20 Earnings Presentation February 2019
Relative performance – Q3FY19 Repco Home Finance Limited Particulars Units Q3FY18 Q3FY19 Sanctions Rs. Mn 7,725 8,052 Disbursements Rs. Mn 6,571 7,332 Net interest income Rs. Mn 1,115 1,065 PAT Rs. Mn 424 556 NIM % 4.5 4.4 Yield on assets % 11.4 11.4 Cost of funds % 8.3 8.4 Spread % 3.2 3.0 Return on assets % 1.8 2.1 Return on equity % 13.9 15.4 21 Earnings Presentation February 2019
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