Repco Home Finance Limited

Repco Home Finance

Limited
Earnings Presentation
Q2FY17

www.repcohome.com

Earnings Presentation November 2016

Agenda
Repco Home Finance Limited

Q2FY17 Performance

Business summary..

Financial performance for Q2FY17

Asset quality.

Diversified source of funding......

Geographic Presence

Expanding footprint...

Region-wise loan book..

Annexure

Earnings Presentation November 2016

Repco Home Finance Limited

Q2FY17 Performance

Earnings Presentation November 2016

Business Summary
Repco Home Finance Limited

Loans outstanding (Sep 30, 2016)

Rs. 84,688 mn

Net worth (Sep 30, 2016)

Rs. 9,927 mn

Average loan per unit

Rs. 1.3 mn

Number of live accounts

72,063

Current Employee Strength

630

Gross NPA (%) (Sep 30, 2016)

2.4%

Net NPA (%) (Sep 30, 2016)

1.3%

Earnings Presentation November 2016

Q2FY17 performance
Repco Home Finance Limited
Figures in Rs million

Income from Operations

Q2FY17

2,596

20%

Q2FY16

2,156
Loan Book

Q2FY17

Q2FY16

Net Interest Income

Net Profit

902

457

22%

17%

742

390

Sanctions

Disbursements

84,688

10,461

24%

22%

1 3%

68,488

8,579

7,763

Earnings Presentation November 2016

8,764

H1FY17 performance
Repco Home Finance Limited
Figures in Rs million

Income from Operations

H1FY17

Net Interest Income

Net Profit

1,742

852

22%

24%

23%

4,157

1,406

693

Sanctions

Disbursements

5,064

H1FY16

Loan Book

H1FY17

H1FY16

84,688

17,425

14,761

24%

13%

9%

68,488

Earnings Presentation November 2016

15,196

13,564

Steady growth in loan book with healthy customer mix

Repco Home Finance Limited
Figures in Rs million

Sanctions and disbursements

20,000
15,000

Loan Book

17,245

15,196

14,761

13,564

10,000
5,000
0
H1FY16
Sanctions

H1FY17

90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
-

Mix of loan portfolio

100%

80%

80%

59.7%

40%
20%

H1FY17

Disbursements

100%
57.5%

68,488

H1FY16

Loan book composition

60%

84,688

40.3%

H1FY16

H1FY17

0%

20.7%

80.8%

79.3%

H1FY16

H1FY17

60%
40%

42.5%

19.2%

20%
0%

Salaried
Earnings Presentation November 2016

Non Salaried

Individual home loans

Loans against property

7

Income and earnings growth

Repco Home Finance Limited
Figures in Rs million

Total Income
6,000
5,000

Net interest income

5,066

4,165

2,000
1,500

4,000
3,000

1,742
1,406

1,000

2,000
500

1,000
H1FY16

H1FY17

H1FY16

Net profit
900
800
700
600
500
400
300
200
100
-

H1FY17

Cost to income ratio

852

693

21.4%
20.0%

16.3%

15.0%
10.0%
5.0%
0.0%
H1FY16

Earnings Presentation November 2016

H1FY17

H1FY16

H1FY17
8

Profitability ratios
Repco Home Finance Limited
Net interest margin
5.0%

4.4%

Spread

4.3%

4.0%

3.5%
3.0%

3.0%

2.9%

H1FY16

H1FY17

2.5%

3.0%

2.0%

2.0%

1.5%
1.0%

1.0%

0.5%

0.0%

0.0%
H1FY16

H1FY17

Return on average net worth

(TTM)
20.0%
16.1%

18.0%

Return on average assets

(TTM)
2.5%

2.2%

2.2%

H1FY16

H1FY17

2.0%

15.0%

1.5%

10.0%

1.0%

5.0%

0.5%

0.0%

0.0%
H1FY16

Earnings Presentation November 2016

H1FY17

Asset quality & provisioning

Repco Home Finance Limited
Figures in Rs Million

Gross NPA
2.37%

2,500
2,000

Net NPA

1.80%

1,500

1,200

2.00%

1,000

1.50%

1,000
500

2.50%

2,011
1,236

H1FY16
Gross NPA

1.00%

800

400
200

0.00%

2.00%
1.50%

624

600

0.50%

H1FY17

1,100

1.31%

1.00%

0.92%
0.50%
0.00%
H1FY16

Gross NPA %

Net NPA

H1FY17
Net NPA %

Provision coverage ratio

55.0%
50.0%

49.5%
45.3%

45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
H1FY16
Earnings Presentation November 2016

H1FY17
10

Asset quality
Repco Home Finance Limited
Movement in NPAs
3.5%
3.0%

2.5%

2.5%

2.0%

2.0%
1.6%

1.3%

1.3%
0.9%

0.8%

0.0%

Gross NPA

Earnings Presentation November 2016

2.4%

1.3%
1.4%

1.3%

1.2%
0.7%

2.2%

1.8%

1.6%
1.6%

1.0%
0.5%

2.0%
1.5%

1.5%

2.3%

2.2%

1.2%

1.3%

0.9%
0.5%

0.5%

Net NPA

11

Mix/Product-wise asset quality

Repco Home Finance Limited

4.0%

3.7%
3.7%

3.5%

3.1%
2.9%

3.0%
2.5%

2.0%

2.0%
1.5%
1.0%

1.9%

2.4%

2.3%

2.4%

2.2%
1.3%
1.2%

1.7%

1.8%

1.1%

0.5%

Earnings Presentation November 2016

Jun-16

Sep-17

Overall

Non-Salaried

Sep-16

Salaried

Home Equity

Home Loan

0.0%

12

Diversified borrowing profile

Repco Home Finance Limited

Source (Rs mn)

H1 FY16 H1 FY17 Change

National housing Bank

Repco Bank
Commercial Banks
NCDs
CPs
Total

9,693

12,983

34%

4,973

4,924

-1%

39,874

44,485

12%

4,000

6,850

71%

2,500

100%

58,540

71,742

23%

100%

3%

7%

90%

10%

8%

7%

80%

70%
60%
50%

68%

62%

17%

18%

H1 FY16

H1 FY17

40%
30%
20%
10%
0%
National Housing Bank

Banks

Repco Bank Ltd

NCDs

CPs

Earnings Presentation November 2016

13

Repco Home Finance Limited

Geographic Presence

Earnings Presentation November 2016

Expanding footprint
Repco Home Finance Limited

Presence in 11 states and 1 Union Territory

with 121 branches and 32 satellite centres
Presence beyond South: branches in West
Bengal,
Orissa,
Maharashtra,
Gujarat,
Madhya Pradesh and Jharkhand
Focus in FY17 is to increase penetration in
existing regions.

Network Expansion
142

150

Significant presence
Recent expansion

110
90
70

153

FY16

H1
FY17

122

130

Strong presence

150

88

92

FY12

FY13

72
54

50
30
FY10

Earnings Presentation November 2016

FY11

FY14

FY15

15

Region-wise loan book

Repco Home Finance Limited

Exposure
Others, 2.3%

Andhra
Pradesh,
7.4%

Telangana,
3.6%

Earnings Presentation November 2016

H1 FY16 H1 FY17

Andhra Pradesh

8.3%

7.4%

Telangana

3.4%

3.6%

Gujarat

1.9%

2.1%

Karnataka

12.5%

12.4%

Kerala

3.8%

3.8%

Kerala, 3.8%

Maharashtra

5.4%

5.9%

Maharastra,
5.9%

Tamil Nadu

62.5%

62.6%

Others

2.2%

2.3%

100%

100%

Gujarat,
2.1%
Karnataka,
12.4%

Tamil Nadu,
62.6%

Key States

16

Repco Home Finance Limited

Annexure

Earnings Presentation November 2016

Shareholding pattern
Repco Home Finance Limited

Outstanding shares 62.55 mn

Bodies
Corporates
, 2.67%
Mutual
Funds,
21.47%

Promoters,
37.14%

Major Non-Promoter Shareholders

Franklin Templeton Mutual Fund
SBI Mutual Fund
Individuals,
Birla Sun Life Mutual Fund
9.41%
Parvest Equity India
DSP Blackrock Mutual Fund
Goldman Sachs India Limited
Nomura India Investment Fund
Foreign
India Capital Fund Limited
Portfolio
Investors,
TVF Fund Ltd
27.25%
Motilal Oswal Mutual Fund
Alliance Bernstein (Mauritius) Limited
BNP Paribas Mutual Fund
Wasatch Funds
NRIs, 0.96%
California Public Employees' Retirement System

%
shareholding
4.8%
4.2%
4.0%
4.0%
3.2%
2.6%
2.4%
2.2%
2.1%
1.5%
1.5%
1.4%
1.2%
1.1%

Others,
1.10%

Earnings Presentation November 2016

18

Profit and loss statement

(Rs. million)
Income:
Revenue from operations
Other Income

Q2 FY17 Q2 FY16

Total Income
Expenses:
Interest and other Financial Charges
Employee benefit expense
Depreciation and amortization expense
Other expenses
Provision for Non-Performing Assets
Contingency Provisions against Standard Assets
Bad-Debts Written Off
Provision for diminution in value of Investments
Total Expenses
Profit before tax
Tax expense:
Current tax
Deferred Tax
Net Profit

Earnings Presentation November 2016

Repco Home Finance Limited

YoY
(%)

Q1
FY17 QOQ (%)

H1
FY17

H1 FY16

YoY
(%)

2,596
1
2,597

2,156
7
2,164

20%
-82%
20%

2,468
1
2,469

5%
18%
5%

5064
2
5,066

4157
8
4,165

22%
-70%
22%

1,597
100
9
55
100
25
2
0
1,887
710

1,344
114
10
51
16
30
0
1
1,567
597

19%
-12%
-15%
8%
523%
-16%
100%
0%
20%
19%

1,549
98
8
43
170
8
1
0
1,878
592

3%
2%
5%
29%
-41%
212%
58%
0%
1%
20%

3146
198
17
98
270
33
3
0
3,765
1302

2615
20%
215
-8%
20
-17%
94
4%
119
127%
41
-19%
0
100%
1 -100%
3,105
21%
1060
23%

244
9
457

188
19
390

30%
-54%
17%

225
-28
395

9%
-131%
16%

469
-19
852

356
32%
11 -277%
693
23%

19

Balance sheet
Repco Home Finance Limited
(Rs. million)
EQUITY AND LIABILITIES:
Shareholder's Funds
Share Capital
Reserves and Surplus

As on Sep 30, 2016

As on Sep 30, 2015

10,401
626
9,776

8,857
624
8,233

Non-Current Liabilities
Long-term borrowings
Deferred Tax Liability
Long term provisions

56,535
54,825
381
1,329

46,520
45,242
354
924

Current Liabilities
Short-term borrowings
Other current liabilities
Short-term provisions

18,575
8,370
10,164
42

13,806
5,623
8,150
32

85,511

69,182

79,390

64,312

65
19
124
79,181

74
17
124
64,098

6,121
242
5,681
199
85,511

4,870
190
4,516
163
69,182

ASSETS:
Non-current assets
Fixed assets
Tangible assets
Intangible assets
Non-current investments
Long term loans and advances
Current assets
Cash and Bank Balances
Short-term loans and advances
Other current assets

Earnings Presentation November 2016

Total

Total

20

Key metrics
Repco Home Finance Limited
Particulars

Units

H1 FY16

FY16

H1 FY17

Outstanding Loan Book

Rs. Mn

68,488

76,912

84,688

Sanctions

Rs. Mn

15,196

30,828

17,245

Disbursements

Rs. Mn

13,564

28,512

14,761

Income from Operations

Rs. Mn

4,157

8,801

5,064

Net Interest Income

Rs. Mn

1,406

3,039

1,742

PAT

Rs. Mn

693

1,501

852

Networth

Rs. Mn

8,520

9,162

9,927

Yield on assets

12.50

12.44

12.10

Cost of funds

9.55

9.44

9.22

Spread

2.95

2.99

2.88

Gross NPA

1.80

1.31

2.37

Net NPA

0.92

0.48

1.31

Non-Salaried

57.5

58.8

59.7

Salaried

42.5

41.2

40.3

Home Loans

80.8

80.2

79.3

Loans against property

19.2

19.8

20.7

Loan Book Composition:

Earnings Presentation November 2016

21

Key metrics
Repco Home Finance Limited
Particulars

Units

Q2FY16

Q1FY17

Q2FY17

Sanctions

Rs. Mn

8.579

6,783

10,461

Disbursements

Rs. Mn

7,763

5,997

8,764

Net Interest Income

Rs. Mn

742

840

902

PAT

Rs. Mn

NIM

390
4.5

395
4.3

457
4.4

Yield on assets

12.6

12.2

12.2

Cost of funds

9.5

9.3

9.2

Spread

3.1

2.9

3.0

Earnings Presentation November 2016

22

For any Investor Relations queries, please contact:

Repco Home Finance Limited

V. Raghu, Executive Director/

Bala , Investor Relations
Repco Home Finance Limited
Phone: +91 44 42106650
Email: ed_vr@repcohome.com
bala@repcohome.com
Safe Harbor:
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 companys
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 RHFLs 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
recipients organisation.
Earnings Presentation November 2016

23