Q4 FY18 Investor Update

LICHFL: A Journey of 29 Years…

• Best HFC by 2016

ABP News
2015 •Business Today-
2014
•Crosses Rs 1 Best CEO Award
lakh cr in portfolio • Business World -
•Best Housing Most Respected Co
Finance Co. by Award
•Crossed Rs. 1000 cr profit & BFSI Awards •Outlook Money-Best
Rs 75,000 Cr assets • Best data quality HFC
in HFC •Best HFC by ABP
2013 by CIBIL News
•Best Data Quality by
2012 • Best HFC by CNBC TV 18 CIBIL
• Construction Industry Award •Asia Pacific
Entrepreneurship
2011 Crossed Rs. 50,000 Cr loan portfolio Award
•Power Brands
2009 Crossed Rs. 500 crs profit Awards by Franchise
India
2004 GDR Issue
2017
2002 AAA Rating
•Crosses 150,000 cr in assets
1994 IPO •Outlook Money-Best HFC
•Business Today BFSI Best
1989 Incorporated CEO
•NSE for highest Debt
Issuance
2
 Executive Summary – Q4 FY18

 Q4 FY18 PAT at Rs 539.33 cr as against Rs 529.19 cr up 2%

 Q4 FY18 Revenue from operations up by 7 % to Rs 3901 cr

 Outstanding Loan portfolio up by 15 % to Rs. 166323 cr

 Individual Loan Portfolio up by 14 % to Rs 158270 cr

 Q4FY18 Loan Disbursements Rs 17402 cr against Rs 15192 cr up by 15%

 Home Loan Disbursements up by 17%

 Net Interest Income Rs 1004 cr against Rs 1040 for Q4FY17

 Net Interest Margins 2.49% for Q4 FY18 as against 2.97% for Q4FY17

 Gross NPAs at 0.78% as against 0.43% as on 31.03.2017

 Net NPAs 0.43% as against 0.14% on corresponding dates

 Individual Loans Gross NPAs 0.42% as on 31.03.2018

 Total Provisions at Rs 1249 cr as against total Gross NPAs of Rs 1304 cr

3
 Update – last 5 years

Disbursement (Rs. Cr) CAGR 18% Loan Portfolio (Rs.cr) CAGR 16%

50000 49378 144534 166363

41541 150000 125173
40000 36151 125000 108361
91341
30327 100000
30000 25271
75000
20000 50000
25000
10000
0
0 2014 2015 2016 2017 2018
2014 2015 2016 2017 2018

Income (Rs. cr) CAGR 13% Profit After Tax (Rs. cr) CAGR 11%

15000 12485 14080 15073 2500

10799 1931 1990
9335 2000 1661
10000 1317 1386
1500
5000 1000
500
0 0
2014 2015 2016 2017 2018 2014 2015 2015 2017 2018

4
 Update – last 5 years

Gross & Net NPAs Total Provisions* (Rs cr)

1% 1500
1249
0.78% Gross 1250
0.67% 1038
0.45% 1000 707 820
0.46%
0.39% 0.43% Net 704
0.43% 750
0.22% 0.22% 500
0.14%
250
0% 0
2014 2015 2016 2017 2018 2014 2014 2016 2017 2018

Operating Expense to Total Income Profit per employee (Rs. lacs)

96.23 105.34 94.62

100.00 87.00 87.29

5% 4.34% 4.30%
3.35% 3.46% 3.75% 50.00

0.00
0% 2014 2015 2016 2017 2018
2014 2015 2016 2017 2018

* Provisions Including Provisions on Std. Assets 5

 Update – last 5 years

EPS (Rs) (Rs 2/- pd up) Book Value (Rs)(Rs 2/- pd up)

50 300 251.49
38.26 39.42 219.49
40 27.47 32.91 181.25
26.10 200 149.00 154.94
30
20 100
10
0 0
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

Return on Avg Equity Return on Avg Loan Assets

20.00% 19.00%
20% 19.00% 18.00% 2%
17.00%
1.56% 1.39% 1.44% 1.43%
1.30%
10% 1%

0% 0%
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

6
 Large geographic presence

• 9 Regional Offices
Corporate office
• 23 Back Offices
Regional offices

Amritsar Jalandhar
Back offices
Operating offices
• 249 Marketing Offices
Shimla

• Rep offices in Dubai & Kuwait

Ludhiana
Ambala Chandigarh
Bhatinda
Patiala Dehradun
Hisar Noida
Karnal

• Coverage of more than 450 centres

Meerut Haldwani
Gurgaon New Delhi
Faridabad Ghaziabad Gangtok
Bareilly

• 2103 Employees
Bikaner Siliguri Jorhat
Jaipur Agra Gorakhpur Guwahati
Jodhpur Kota Ajmer Lucknow
Udaipur Malda
Kanpur Patna Silchar
Gwalior Varanasi Dhanbad Behrampur
Ahmedabad
Gandhidham
Rajkot Vadodara Indore
Allahabad
Bhopal
Jamshedpur
Ranchi Durgapur

Kolkata
Widening footprint…improved efficiencies
Jabalpur Rourkela
Bilaspur

Year No of No of Back No of No of Lon

Surat
Jalgaon Nagpur Raipur
Vapi
Durg-Bhilai Cuttack
Nallasopara Nasik

Marketing offices Regional Employees Portfolio

Aurangabad Bhubaneshwar
Kalyan
Thane Warangal
Jogeshwari

Offices Offices Rs cr
Mumbai Visakapatnam
Pune Hyderabad Rajahmundry
Vashi Kolhapur Gulburga Vijayawada
Satara Kurnool
Belgaum Kakinada

Panjim
Hubli
Bellary
Tirupati
Anantapur Guntur
Nellore 2003 105 - 6 870 7772
Bengaluru

2008 125 14 6 985 21936

Mangalore Hosur Chennai
Mysore
Vellore
Hassan
Salem
Kannur
Coimbatore

2013 194 16 7 1446 77812

Thrissur
Erode
Kozhikode Tiruchirapalli
Palghat Pondicherry
Ernakulam Thanjavur

2018 249 23 9 2103 166363

Kottayam Madurai
Thiruvananthapuram Tirumangalam
Kollam
Nagercoil

23 New Marketing Offices proposed to be opened in FY 2019

7
 Distribution Network

HOME LOAN AGENTS (HLAs)

(Agents of LIC)

DIRECT SALES AGENTS (DSAs)

(Small Firms/Companies etc)
249
CUSTOMER RELATIONS
Marketing Offices ASSOCIATES (CRAs)
(Individual Agents of the Company)

Total No of Agents > 12500: 49 branches of

growth of over 20% y-o-y LICHFL Financial Services
(100% subsidiary of LICHFL)

8
 Origination Pattern & Average Ticket Size

Customer Type (No.) Originations by source

17% 9%
4%
7%

19% 61%
83%

Salaried Self Employed HLA DSA CRA DIRECT LICHFLFSL

Incremental Ticket Size

Top 7 cities & Others
(Rs lacs)
₹ 24.0
₹ 23.0 55% 45%
168 81
₹ 22.0 Offices
Offices
₹ 21.0
₹ 20.0
₹ 19.0
₹ 18.0
FY17 FY18 Top 7 cities Others
9
 Loan Book Composition

Developer
Loans
Retail LAP/ 4.9%
other
14.3%

Retail
Home Loans
80.8%

31.03.2018 31.3.2017
O/s Portfolio Rs 166363 cr O/s Portfolio Rs 144534 cr

10
 Individual Loans – Portfolio Stats

Pure Floating Rate Loans Loan To Value Ratio

To Outstanding Portfolio On Incremental Sanctions
As of FY16 47% For FY16 47%
As of FY17 70% For FY17 45%
As of FY18 74% For FY18 44%

Prepayment Installment to Net Income Ratio

Lump Sum/ opening book On Incremental Sanctions
For FY16 11.9% For FY16 33%
For FY17 10.9% For FY17 32%
For FY18 11.0% For FY18 31%

11
 Executive Summary – Q4/FY18

Rs cr
Q4 Q4
Var Var FY18 FY17
FY18 FY17
Interest Income on Individual Loans 5% 3631.47 3454.31 5% 14092.86 13359.36

Interest Income on Project Loans 39% 215.23 155.24 42% 733.10 517.36

Total 7% 3846.70 3609.55 7% 14825.96 13876.72

Processing Fees & Other Fees 63% 54.24 33.33 21% 133.69 110.23

Other Income 75% 33.17 18.98 21% 113.24 93.40

Gross Income 7% 3934.12 3661.86 7% 15072.90 14080.35

Interest Expenses 11% 2843.05 2569.92 9% 11124.65 10231.49

Net Interest Income (3%) 1003.65 1039.63 2% 3701.31 3645.24

Salary & Other Establishment Expenses 14% 224.19 196.54 6% 647.51 611.77

Net Provisions & Diminutions (68%) 28.13 89.29 (15%) 238.87 281.32
Profit before Tax 4% 838.74 806.10 4% 3061.87 2955.77
Income Tax Provision including Deferred Tax 8% 299.41 276.91 5% 1072.28 1024.72

Net Profit 2% 539.33 529.19 3% 1989.59 1931.05

 Executive Summary – Q4/FY18

Rs cr
Q4 Q4
Var Var FY18 FY17
FY18 FY17
Disbursements

Individual 8% 15136 13960 18% 45112 38334

Project 84% 2266 1232 33% 4266 3208

Total 15% 17402 15192 19% 49378 41541

Outstanding Portfolio

Individual 14% 158270 139024

Project 47% 8093 5510

Total 15% 166363 144534

Net Interest Margins(%) 2.49% 2.97% 2.38% 2.70%

Incremental Cost 7.55% 8.03%

Incremental Yield 9.80% 10.80%
Incremental Spreads 2.25% 2.77%
 Financial Highlights

FY2018 FY2017
Return on Average Equity (%) 17% 19.%
Return on Average Assets for qtr (%) 1.3% 1.4%
Earnings per share (on Rs 2 pd up) 39.42 38.26
Dividend per Share (on Rs 2 pd up) 6.80 6.20
Capital Adequacy Ratio Sept 2017 March 2017
Tier I 13.36 13.35
Tier II 2.68 2.29
Total 16.04 15.64

14
 Yield & Cost of Funds on portfolio

12.00% 2.80%
10.83%
2.70% 10.12% 2.70%
10.00%
8.59% 2.60%
8.31%
8.00%
2.50%

6.00% 2.40%
2.38%

2.30%
4.00%
2.20%
2.00%
2.10%

0.00% 2.00%
FY17 FY18
Yield on Advances on
10.83% 10.12%
Portfolio
Wtd Avg cost of funds on
8.59% 8.31%
Total Borrowed Funds
NIMs 2.70% 2.38%

15
 Liability Profile

as on 31.3.2018
Source Wtd Outstanding Borrowings – Rs. 145339 cr

Avg Sub Debt CP Deposits*

2% 3% 5% Bank
Cost 10%
NHB
(%) 1%

Banks & Institutions 8.17%

Non Convertible Debenture 8.37%
National Housing Bank 8.13%
Sub. Bonds & Upper Tier II 9.18%
Commercial Paper 7.41%
Deposits* 7.92% NCD
79%
Total 8.31%
During Q4FY18, Borrowings were Rs 27962 cr @ 7.76%

* Includes Corporate Deposits of Rs 3352 cr

16
 NIMs

3.00% 2.97%
2.71%
2.49%
2.40% 2.47%

2.00%

1.00%

0.00%
Q4FY15

Q4 FY18
Q4FY14

Q4FY16

Q4FY17
NIMs (for the quarter)

17
 Gross & Net NPAs

31.03.2018 31.03.2017

Gross NPA (Rs. cr) 1304 627

Gross NPA (%) 0.78% 0.43%
Provisions for NPA (Rs. cr) 592 422
Net NPA(%) 0.43% 0.14%
Provisions incl standard asset prov.(Rs. cr) 1249 1038

Provisions cover incl standard asset prov.(%) 96% 166%

18
 Gross & Net NPAs

0.78%
0.80%
0.67%
0.70%

0.60%

0.50% 0.46% 0.45% 0.43%

0.39% 0.43%

0.40%

0.30%
0.22%
0.22% 0.14%
0.20%

0.10%
Q4FY14

Q4FY15

Q4FY16

Q4FY17

Q4FY18
Gross NPA Net NPA

19
 Thank you

DISCLAIMER

This presentation is made purely for information. We have attempted to provide relevant
information which we believe will help in knowing the Company. The users may use their own
judgment and are advised to make their own calculations before deciding on any matter based
on the information given herein.
While every care is taken to verify the accuracy of the information given in this presentation,
neither the Company nor its officials would in any way be liable for any action taken or not
taken by the viewers or the users of this presentation or for any claims, losses etc.

20