earnings presentation q1fy16 - repco home q1fy16 earni… · earnings presentation august 2015 key...

Repco Home Finance Limited

Earnings Presentation August 2015

www.repcohome.com

Earnings Presentation

Q1FY16



Agenda

Q1FY16 Performance

► Business summary…………………………………………….……..04

► Financial performance ………………………… …………….05-10

► Diversified source of funding…………..……………………..…..11

Geographic Presence

► Expanding footprint.………………………………………………..13

► Region-wise loan book.………………………………………….…14

Annexure

2



Q1FY16 Performance



• Loans outstanding (June 30, 2015) Rs. 63,442 mn

• Net worth (June 30, 2015) Rs. 8,428 mn

• Average loan per unit Rs. 1.2 mn

• Number of live accounts 59,428

• Current Employee Strength 571

• Cost to Income ratio 21.1%

• Capital Adequacy Ratio 20.0% (Provisional)

• Gross NPA (%) (June 30, 2015) 2.22%

• Net NPA (%) (June 30, 2015) 1.29%

Business Summary

4



Robust growth continues in Q1FY16

28%

1,561

2,001

25%

530

664

22%

248

302

30%

48,923

63,442

38%

4,811

6,617

40%

4,146

5,801

Total Income Net Interest Income Profit after Tax

Loan Book Sanctions Disbursements

Figures in Rs Million

Q1FY15

Q1FY16

Q1FY15

Q1FY16

5



Steady growth in loan book with healthy customer mix

Loan Book Sanctions and disbursements

Mix of loan portfolio Loan book composition

Figures in Rs million

6

4,811

6,617

4,146

5,801

3,000

4,000

5,000

6,000

7,000

Q1FY15 Q1FY16

Sanctions Disbursements

48,923

63,442

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

Q1FY15 Q1FY16

44.7% 42.9%

55.3% 57.1%

0%

20%

40%

60%

80%

100%

Q1FY15 Q1FY16

Salaried Non Salaried

80.8% 81.0%

19.2% 19.0%

0%

20%

40%

60%

80%

100%

Q1FY15 Q1FY16

Individual home loans Loans against property



Net interest income Income from operations

Cost to income ratio Net profit


Driving robust income and earnings growth

7

Excluding

ESOP charge,

the cost to

income ratio

will be

Q1FY15–

17.0%

Q1FY16-

18.1%

1,560

2,000

-

500

1,000

1,500

2,000

Q1FY15 Q1FY16

530

664

-

100

200

300

400

500

600

700

Q1FY15 Q1FY16

248

302

-

50

100

150

200

250

300

350

Q1FY15 Q1FY16

19.2% 21.1%

0.0%

5.0%

10.0%

15.0%

20.0%

Q1FY15 Q1FY16



Net interest margin

Return on average net worth (TTM) Return on assets (TTM)

And steady profitability ratios

8

Spread

Note – Post

DTL profits

considered

for return

ratios

4.4% 4.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Q1FY15 Q1FY16

2.8% 2.9%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Q1FY15 Q1FY16

16.5% 16.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Q1FY15 Q1FY16

2.6%

2.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Q1FY15 Q1FY16



Gross NPA Net NPA

Increased focus on asset quality & provisioning

9

Provision coverage ratio

Figures in Rs Million

1,218 1,406

2.49%

2.22%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

-

500

1,000

1,500

Q1FY15 Q1FY16

Gross NPA Gross NPA %

774 810

1.60% 1.29%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

-

200

400

600

800

1,000

1,200

Q1FY15 Q1FY16

Net NPA Net NPA %

36.4%

42.4%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Q1FY15 Q1FY16



Sustainable improvement in asset quality

Movement in NPAs

• Owing to seasonality, Q1 & Q3 GNPAs are generally higher than Q2 & Q4 GNPAs

• Improvement in asset quality despite material changes in loan book composition over the last 2 years.

10

2.6%

2.1%

2.9%

1.5%

2.2%

1.6%

2.0%

1.5%

2.5%

1.6%

2.0%

1.3%

2.2%

2.0% 1.6%

2.3%

1.0%

1.5%

0.9%

1.3%

0.7%

1.6%

0.8%

1.2%

0.5%

1.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Gross NPA Net NPA



Diversified source of funding

Sources of borrowing Sources (as on June 30, 2015) Amount

Banks 36,834

National Housing Bank 10,320

Repco Bank Ltd 4,885

Non Convertible Debentures (NCDs) 1,000

Commercial Papers (CPS) 1,000

Total 54,038


11

1. Commercial papers will offset Repco Bank borrowings to some extent 2. In a falling interest rate scenario, NCDs will dominate incremental borrowings

(constrained by approved NCD borrowing limits)

26% 19%

64% 68%

10% 9% 2% (NCDs)

2% (CPs)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

June'14 June'15

National Housing Bank Banks

Repco Bank Ltd Non Covertible Debuntures

Commercial Papers



Geographic Presence



Expanding footprint

13

Significant presence

Strong presence

Recent expansion

FY15 expansion

Presence in 11 states (including

Telangana) and 1 Union Territory with 108

branches and 38 satellite centres

Ventured into Jharkhand in FY15

Presence beyond South: branches in West

Bengal, Orissa, Maharashtra, Gujarat,

Madhya Pradesh and Jharkhand

Network Expansion

45 54

72

88 92

122

142 146

30

50

70

90

110

130

150



Region-wise loan

14

Andhra

Pradesh, 8.6% Telangana,

3.4%

Gujarat, 1.8%

Karnataka,

12.4%

Kerala, 3.7%

Maharastra,

5.4%

Tamil Nadu,

62.5%

Others, 2.2%


Earnings Presentation August 2015 15

Annexure



Shareholding pattern

Outstanding shares – 62.36 mn Major Non-Promoter Shareholders %

shareholding

Smallcap World Fund, Inc 4.07%

Parvest Equity India 3.46%

India Capital Fund Limited 3.09%

Goldman Sachs India Fund Limited 2.53%

Nomura India Investment Fund Mother Fund 1.99%

Franklin Templeton Mutual Fund - Indiaprima 1.93%

TVF Fund Ltd 1.75%

National Westminster Bank Plc - Jupiter India 1.44%

DSP Blackrock Micro Cap Fund 1.39%

GMO Emerging Domestic Opportunities Fund 1.18%

Franklin India Smaller Companies Fund 1.18%

SBI Magnum Global Fund 1.12%

16

Promoters,

37.25%

Mutual

Funds,

15.53%

Bodies

Corporates,

3.50%

Individuals,

12.52%

FIIs, 28.71%

NRIs, 1.50%

Others,

0.99%



Profit and loss statement

(Rs. million) Q1 FY16 Q1 FY15 YoY (%) Q4 FY15 QOQ

(%) FY15 FY14 YoY (%)

Income:

Revenue from operations 2,000 1,560 28% 1,913 5% 6922 5341 30%

Other Income 1 1 0 1 -47% 8 12 -31%

Total Income 2,001 1,561 28% 1,915 5% 6,930 5,353 29%

Expenses:

Interest and other Financial Charges 1,271 976 30% 1,168 9% 4318 3247 33%

Employee benefit expense 101 68 49% 105 -4% 335 211 59%

Depreciation and amortization expense 10 5 92% 10 8% 29 24 22%

Other expenses 43 39 9% 50 -15% 183 153 19%

Provision for Non-Performing Assets 102 91 13% 33 100% 140 176 -20%

Contingency Provisions against Standard Assets 11 7 42% 28 -62% 62 47 31%

Provision for diminution in value of Investments 0 0 0% 0 0% 0 1 -100%

Bad-Debts Written Off 0 0 0% 1 0% 1 3 -54%

Total Expenses 1,538 1,186 30% 1,395 10% 5,068 3,862 31%

Profit before tax 463 375 24% 520 -11% 1862 1491 25%

Tax expense:

Current tax 169 129 31% 156 8% 559 465 20%

Deferred Tax -8 -2 294% 16 -149% 72 -75 -196%

Post DTL Net Profit/(Loss) 302 248 22% 348 -13% 1,231 1,101 12%

17



Key metrics

18

Particulars Units Q1 FY15 Q1 FY16

Outstanding Loan Book Rs. Mn 48,923 63,442

Sanctions Rs. Mn 4,811 6,617

Disbursements Rs. Mn 4,146 5,801

Income from Operations Rs. Mn 1,560 2,000

Net Interest Income Rs. Mn 530 664

PAT Rs. Mn 248 302

Networth Rs. Mn 7,189 8,428

Yield on assets % 12.61% 12.53%

Cost of funds % 9.78% 9.68%

Spread % 2.83% 2.85%

Gross NPA % 2.49% 2.22%

Net NPA % 1.60% 1.29%

Loan Book Composition:

Salaried % 44.7% 42.9%

Non-Salaried % 55.3% 57.1%

Home Loans % 80.8% 81.0%

Loans against property % 19.2% 19.0%



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 .

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

recipient’s organisation.

Safe Harbor:

V. Raghu, Executive Director/ Bala , Investor Relations Repco Home Finance Limited Phone: +91 44 42106650 Email: [email protected]

[email protected]

19

mailto:[email protected]

mailto:[email protected]

earnings presentation q1fy16 - repco home q1fy16 earni… · earnings presentation august 2015 key...

Documents