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Repco Home Finance Limited
Repco Home Finance
Limited
Earnings Presentation August 2016
www.repcohome.com
Limited
Earnings Presentation
Q1FY17
Repco Home Finance Limited
Agenda
� Q1FY17 Performance
► Business summary…………………………………………….…….
► Financial performance for Q1FY17…… ………………
► Asset quality……………………………………………………….
► Diversified source of funding…………..……………………..…..
Earnings Presentation August 2016
� Geographic Presence
► Expanding footprint.………………………………………………..
► Region-wise loan book.………………………………………….…
� Annexure
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Repco Home Finance Limited
Q1FY17 Performance
Earnings Presentation August 2016
Repco Home Finance Limited
• Loans outstanding (June 30, 2016) Rs. 79,593 mn
• Net worth (June 30, 2016) Rs. 9,513 mn
• Average loan per unit Rs. 1.3 mn
• Number of live accounts 69,012
Business Summary
Earnings Presentation August 2016
• Current Employee Strength 625
• Capital Adequacy Ratio 20.05% (Provisional)
• Gross NPA (%) (June 30, 2016) 2.2%
• Net NPA (%) (June 30, 2016) 1.2%
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Repco Home Finance Limited
Growth story continues in Q1FY17
23%
2,468
27%
840
31%
395
Income from Operations Net Interest Income Net Profit
Figures in Rs million
Q1FY17
Earnings Presentation August 2016
2,000 664 302
25%
63,442
79,593
3%
6,617
6,783
3%
5,801
5,997
Loan Book Sanctions Disbursements
Q1FY16
Q1FY16
Q1FY17
Repco Home Finance Limited
Steady growth in loan book with healthy customer mix
Loan BookLoan BookSanctions and disbursementsSanctions and disbursements
Figures in Rs million
63,442
79,593
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
6,6176,783
5,8015,997
5,000
5,500
6,000
6,500
7,000
Earnings Presentation August 2016
Mix of loan portfolioMix of loan portfolioLoan book compositionLoan book composition
6
-
Q1FY16 Q1FY17
5,000
Q1FY16 Q1FY17
Sanctions Disbursements
42.9% 40.9%
57.1% 59.1%
0%
20%
40%
60%
80%
100%
Q1FY16 Q1FY17
Salaried Non Salaried
81.0% 79.9%
19.0% 20.1%
0%
20%
40%
60%
80%
100%
Q1FY16 Q1FY17
Individual home loans Loans against property
Repco Home Finance Limited
Net interest incomeNet interest incomeTotal IncomeTotal Income
Figures in Rs million
Income and earnings growth
2,001
2,469
500
1,000
1,500
2,000
2,500
3,000
664
840
100
200
300
400
500
600
700
800
900
Earnings Presentation August 2016
Cost to income ratioCost to income ratioNet profitNet profit
7
-
Q1FY16 Q1FY17
-
100
Q1FY16 Q1FY17
302
395
-
50
100
150
200
250
300
350
400
450
Q1FY16 Q1FY17
21.1%
16.2%
0.0%
5.0%
10.0%
15.0%
20.0%
Q1FY16 Q1FY17
Repco Home Finance Limited
Net interest marginNet interest margin
And steady profitability ratios
SpreadSpread
4.3% 4.3%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
2.9% 2.9%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
Earnings Presentation August 2016
Return on average net worth
(TTM)
Return on average net worth
(TTM)
Return on average assets
(TTM)
Return on average assets
(TTM)
8
0.0%
Q1FY16 Q1FY17
0.0%
Q1FY16 Q1FY17
16.4%18.1%
0.0%
5.0%
10.0%
15.0%
20.0%
Q1FY16 Q1FY17
2.3% 2.3%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Q1FY16 Q1FY17
Repco Home Finance Limited
Gross NPAGross NPA Net NPANet NPA
Asset quality & provisioning
Figures in Rs Million
1,406 1,770
2.22%2.22%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
-
500
1,000
1,500
2,000
810
959
1.29%1.22%
0.00%
0.50%
1.00%
1.50%
2.00%
-
200
400
600
800
1,000
Earnings Presentation August 20169
Provision coverage ratioProvision coverage ratio
0.00%-
Q1FY16 Q1FY17
Gross NPA Gross NPA %
0.00%-
Q1FY16 Q1FY17
Net NPA Net NPA %
42.4%
45.8%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Q1FY16 Q1FY17
Repco Home Finance Limited
Stable asset quality
Movement in NPAsMovement in NPAs
2.2%
1.6%
2.0%
1.5%
2.5%
1.6%
2.0%
1.3%
2.2%
1.8%
2.3%
1.3%
2.2%
1.5%1.3%
1.6%
1.2%1.3% 1.4% 1.2%1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
Earnings Presentation August 2016
• Stable asset quality despite material changes in loan book composition and mix over the last 3 years.
10
0.9%0.7% 0.8%
1.2%
0.5%
0.9%
0.5%0.0%
0.5%
Gross NPA Net NPA
Repco Home Finance Limited
Mix/Product-wise asset quality
2.0%
3.3%
1.4%
2.9%
2.2%
1.2%
2.0%1.8%
1.3%
1.9%
3.7%
1.2%
2.9%
2.2%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
Earnings Presentation August 201611
1.4%1.2%
0.7%
1.3%1.2%
0.0%
0.5%
1.0%
1.5%
Ho
me
Lo
an
Ho
me
Eq
uity
Sa
larie
d
No
n-S
ala
rie
d
Ove
rall
June-15 March-16 June-16
Repco Home Finance Limited
Diversified borrowing profile
Source (Rs mn) Q1FY16 Q1FY17 Change
National housing Bank 10,320 13,540 31%
Repco Bank 4,885 4,844 -1%
Commercial Banks 36,834 42,812 16%
NCDs 1,000 4,000 300%
68% 63%
9%7%
2% 6%
2% 4%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Earnings Presentation August 2016
.
12
NCDs 1,000 4,000 300%
CPs 1,000 2,500 150%
Total 54,038 67,696 25%
19% 20%
0%
10%
20%
Q1FY16 Q1FY17
National Housing Bank Banks
Repco Bank Ltd NCDs
CPs
Repco Home Finance Limited
Geographic Presence
Earnings Presentation August 2016
Repco Home Finance Limited
Expanding footprint
� Presence in 11 states and 1 Union Territory
with 120 branches and 31 satellite centres
� Presence beyond South: branches in West
Bengal, Orissa, Maharashtra, Gujarat,
Madhya Pradesh and Jharkhand
� Focus in FY17 will be to increase penetration
in existing regions.
Earnings Presentation August 201614
Significant presence
Strong presence
Recent expansion
Network ExpansionNetwork Expansion
45 54
72
88 92
122
142 150 151
30
50
70
90
110
130
150
Repco Home Finance Limited
Region-wise loan book
Andhra
Pradesh,
7.5%
Telangana,
3.4%
Gujarat,
2.1%
Karnataka,
Others, 2.3%Exposure
Key States Q1FY16 Q1FY17
Andhra Pradesh &
Telangana 12.0% 11.0%
Gujarat 1.8% 2.1%
Karnataka 12.4% 12.4%
Earnings Presentation August 2016 15
Karnataka,
12.4%
Kerala, 3.8%
Maharastra,
5.8%
Tamil Nadu,
62.6%
Karnataka 12.4% 12.4%
Kerala 3.7% 3.8%
Maharashtra 5.4% 5.8%
Tamil Nadu 62.5% 62.6%
Others 2.2% 2.3%
Total 100.0% 100.0%
Repco Home Finance Limited
Annexure
Earnings Presentation August 2016
Repco Home Finance Limited
Shareholding pattern
Outstanding shares – 62.54 mn
Mutual
Funds,
22.1%
Bodies
Corporates
, 2.6%Individuals,
9.8%NRIs, 1.1%
Foreign
Portfolio
Investors,
26.5%
Major Non-Promoter Shareholders % shareholding
Franklin Templeton Mutual - Indiaprima Fund 4.8%
Birla Sun Life Balanced 95 Fund 4.6%
SBI Magnum Multiplier Fund 4.5%
Parvest Equity India 3.8%
DSP Blackrock Micro Cap Fund 3.2%
Goldman Sachs India Fund Limited 2.6%
India Capital Fund Limited 2.5%
Nomura India Investment Fund Mother Fund 2.2%
TVF Fund Ltd 2.1%
Motilal Oswal Most Focused Midcap 30 Fund 1.5%
Earnings Presentation August 201617
Promoters,
37.1%
22.1%26.5%
Others,
0.6%
Motilal Oswal Most Focused Midcap 30 Fund 1.5%
Alliance Bernstein India Growth (Mauritius) Limited 1.5%
Wasatch Emerging Markets Small Cap Fund 1.2%
BNP Paribas Equity Fund 1.1%
California Public Employees Retirement System, Sel 1.0%
Repco Home Finance Limited
Profit and loss statement
(Rs. million) Q1 FY17 Q1 FY16YoY (%) Q4 FY16 QOQ (%) FY16 FY15 YoY (%)
Income:
Revenue from operations 2,468 2,000 23% 2,400 3% 8807 6922 27%
Other Income 1 1 44% 3 -64% 12 8 41%
Total Income 2,469 2,001 23% 2,403 3% 8,818 6,930 27%
Expenses:
Interest and other Financial Charges 1,549 1,271 22% 1,456 6% 5483 4318 27%
Employee benefit expense 98 103 -5% 88 11% 409 335 22%
Depreciation and amortization expense 8 10 -22% 12 -34% 41 29 43%
Earnings Presentation August 2016 18
Depreciation and amortization expense 8 10 -22% 12 -34% 41 29 43%
Other expenses 43 40 5% 53 -19% 192 183 5%
Provision for Non-Performing Assets 170 102 66% 109 57% 293 140 108%
Contingency Provisions against Standard
Assets 8 11 -23% 28 -71% 95 62 55%
Bad-Debts Written Off 1 0 100% 3 -56% 3 1 157%
Provision for diminution in value of
Investments 0 0 0% 1 100% 1 0 100%
Total Expenses 1,878 1,538 22% 1,749 7% 6,518 5,068 29%
Profit before tax 592 463 28% 650 -9% 2301 1862 24%
Tax expense:
Current tax 225 169 33% 187 20% 742 559 33%
Deferred Tax -28 -8 260% 40 -170% 58 72 -19%
Net Profit 395 302 31% 422 -6% 1501 1231 22%
Repco Home Finance Limited
Key metrics
Particulars Units Q1FY16 Q4FY16 Q1FY17
Outstanding Loan Book Rs. Mn 63,442 76,912 79,593
Sanctions Rs. Mn 6,617 9,342 6,783
Disbursements Rs. Mn 5,801 8,975 5,997
Income from Operations Rs. Mn 2,000 2,400 2,468
Net Interest Income Rs. Mn 664 856 840
PAT Rs. Mn 302 422 395
Networth Rs. Mn 8,125 9,162 9,513
Yield on assets % 12.5% 12.2% 12.2%
Earnings Presentation August 201619
Cost of funds % 9.7% 9.2% 9.3%
Spread % 2.9% 3.0% 2.9%
Gross NPA % 2.2% 1.3% 2.2%
Net NPA % 1.3% 0.5% 1.2%
Loan Book Composition:
Salaried % 42.9% 41.2% 40.9%
Non-Salaried % 57.1% 58.8% 59.1%
Home Loans % 81.0% 80.2% 79.9%
Loans against property % 19.0% 19.8% 20.1%
Repco Home Finance Limited
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
Safe Harbor:
V. Raghu, Executive Director/
Bala , Investor Relations
Repco Home Finance Limited
Phone: +91 44 42106650
Email: [email protected]
Earnings Presentation August 2016
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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