earnings presentation q1fy21 · earnings presentation sep 2020 ecl provisioning 14 figures in rs...

Repco Home Finance Limited

Earnings Presentation Sep 2020

www.repcohome.com

Earnings Presentation

Q1FY21



Agenda

Q1FY21 Performance

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

► Financial performance……………………………

► Borrowing profile………………..……………….………………….

Geographic Presence

► Footprint.………………………………………………..

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

Annexure



Q1FY21 Performance



• Loans outstanding (June 30, 2020) Rs. 1,19,795 mn

• Net worth (June 30, 2020) Rs. 17,340 mn

• Tier 1 capital adequacy ratio 26.2% (Provisional)

• Average loan per unit Rs. 1.5 mn

• Number of live accounts 99,425

• Current employee Strength 997

• Stage 3 EAD (%) (June 30, 2020) 4.0%

• ECL provision(%) (June 30, 2020) 2.0%

Business Summary

4



Q1FY21 performance

4%

3,284

3,419

1%

1,271

1,280

3%

623

640

5% 7%

20,98392,438

Total income Net interest income Profit after tax

Home Loans LAP

Figures in Rs million

Q1FY20

Q1FY21

Q1FY20

Q1FY21 22,39097,406

5

Note - Of the loans classified as LAP (non-housing), over Rs. 5,700 million are CRE housing loans.



Asset book

Loan BookSanctions and disbursements

Mix of loan portfolioLoan book composition


6

6,981

1,615

6,674

1,816

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Q1FY20 Q1FY21

Sanctions Disbursements

1,13,421 1,19,795

20,000

40,000

60,000

80,000

1,00,000

1,20,000

1,40,000

June'19 June'20

45.8% 48.3%

54.2% 51.7%

0%

20%

40%

60%

80%

100%

June'19 June'20

Salaried Non Salaried

81.5% 81.3%

18.5% 18.7%

0%

20%

40%

60%

80%

100%

June'19 June'20

Home loans Loans against property



Net interest incomeTotal income

Net worthNet profit


Income and earnings growth

7

3,284 3,419

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q1FY20 Q1FY21

1,271 1,280

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

Q1FY20 Q1FY21

623

640

500

520

540

560

580

600

620

640

660

Q1FY20 Q1FY21

14,929

17,340

5,000

7,000

9,000

11,000

13,000

15,000

17,000

19,000

June'19 June'20



Other opexEmployee cost

Cost to income ratio


Operating cost

8

147

169

0

20

40

60

80

100

120

140

160

180

Q1FY20 Q1FY21

88

67

0

10

20

30

40

50

60

70

80

90

100

Q1FY20 Q1FY21

18.5% 17.9%

0.0%

5.0%

10.0%

15.0%

20.0%

Q1FY20 Q1FY21



Net interest margin

Return on equity Return on assets

Profitability ratios

9

Spread

4.5%

4.3%

3.0%

3.2%

3.4%

3.6%

3.8%

4.0%

4.2%

4.4%

4.6%

Q1FY20 Q1FY21

3.1%3.0%

2.0%

2.2%

2.4%

2.6%

2.8%

3.0%

3.2%

Q1FY20 Q1FY21

2.2% 2.2%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Q1FY20 Q1FY21

17.0%

15.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Q1FY20 Q1FY21



Asset liability management (June 30, 2020)

• Note 1 - Total unutilized line of credit on June 30, 2020 stood at Rs. 28,838 million.• Note 2- Prepayments assumed to be Rs. 350 million per month, which is significantly lower than historical and most

recent trends.• Note 3 – No prepayment cash flows assumed in any of the 1+ year buckets.


1,994 4,725 4,875 6,152 14,094

43,990

26,858 14,894 11,277 5,596

7,918 5,345 6,846 10,881

15,220

37,841

35,915 32,521

38,632

63,556

-

20,000

40,000

60,000

80,000

1,00,000

1,20,000

1,40,000

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Up to 1

month

Over 1

to 2

months

Over 2

to 3

months

Over 3

to 6

months

Over 6

months

to 1

Year

Over 1

to 3

years

Over 3

to 5

years

Over 5

to 7

Years

Over 7

to 10

Years

Over 10

years

Cum. Inflow (outflow) Total Outflow Total Inflow

10



Asset quality

90+ dpd(%)

11

4.0%

3.6%

3.9%

3.0%

4.2% 4.2% 4.2%4.3%

4.0%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

June'18 Sep'18 Dec'18 Mar'19 June'19 Sep'19 Dec'19 Mar'20 June-20

Gross NPA



Product mix / Occupation wise asset quality

12

3.5%

6.4%

4.0%3.8%

6.6%

4.3%

3.6%

6.9%

4.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Housing Loan LAP Overall

June'20 Mar'20 June'19

1.5%

6.4%

4.0%

1.6%

6.7%

4.3%

1.5%

6.2%

4.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Salaried Non-Salaried Overall




Stage 3 – ageing wise LTV & provision cover (June’20)

13


Stage 3 ageing At origination avg LTV Loans Provision cover

Less than 1 year 45% 1,932 29%

1 - 2 years 48% 1,204 32%

2 - 3 years 49% 931 42%

Above 3 years 48% 765 84%

Overall 47% 4,832 41%

45% 48% 49% 48% 47%

29% 32%

42%

84%

41%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Less than 1

year

1 - 2 years 2 - 3 years Above 3

years

Overall

Loan to value Provision cover



ECL Provisioning

14



Gross Stage 3 4,812 5,117 4,832

% portfolio in Stage 3 4.24% 4.33% 4.03%

ECL provision - Stage 3 1,469 1,830 1,992

Net - Stage 3 3,343 3,287 2,839

Coverage ratio - Stage 3 31% 36% 41%

Gross Stage 1 & 2 1,08,609 1,13,145 1,14,964

% portfolio in Stage 1 & 2 95.8% 95.7% 96.0%

ECL provision - Overall 1.5% 1.8% 2.0%



Borrowing profile

Source (Rs mn)Average

costJune'19 June'20

% change

National Housing Bank 6.2% 10,459 10,609 1%

Repco Bank 8.3% 7,583 10,453 38%

Commercial Banks 8.5% 67,762 75,902 12%

NCDs 8.1% 8,270 4,520 -45%

Commercial Papers 5.1% 1,500 0 -100%

Total 8.2% 95,573 1,01,484 6%

15


11% 10%

8% 10%

71%75%

9%4%2%

0%

20%

40%

60%

80%

100%

June'19 June'20

National Housing Bank Repco Bank

Commercial Banks NCDs

CPs



Movement in borrowing cost

16

8.60% 8.61% 8.62% 8.59% 8.58% 8.52% 8.53% 8.52% 8.46% 8.37% 8.41% 8.40% 8.23%

8.28% 8.45% 8.46% 8.68% 8.22% 8.19% 8.78% 8.74% 8.44% 8.37% 8.48% 8.23%

6.37%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

Weighted average borrowing cost Incremental borrowing cost



Geographic Presence



Footprint

18

Present in 12 states and 1 Union Territory

with 153 branches and 24 satellite centers.

Plus 2 asset recovery branches.

Presence beyond South: branches in West

Bengal, Orissa, Maharashtra, Gujarat,

Madhya Pradesh & Rajasthan.

Network Expansion

88 92

122

142150

156 160170 175 177

30

50

70

90

110

130

150

170

Ma

r'12

Ma

r'13

Ma

r'14

Ma

r'15

Ma

r'16

Ma

r'17

Ma

r'18

Ma

r'19

Se

p'1

9

De

c'1

9



Region-wise loan book

Annualized

5

Exposure

States June'19 Mar'20 June'20YoY growth

QoQgrowth

Andhra Pradesh 6.6% 6.2% 6.1% -2% 0%

Telangana 4.6% 4.6% 4.6% 5% 5%

Gujarat 3.4% 3.6% 3.6% 12% 6%

Karnataka 13.8% 14.1% 14.1% 8% 4%

Kerala 3.6% 3.3% 3.3% -3% 4%

Maharashtra 8.6% 9.2% 9.2% 14% 6%

Tamil Nadu 56.6% 55.9% 55.9% 4% 5%

Others 2.9% 3.0% 3.2% 15% 29%

Total 100% 100% 100% 6% 5%

Andhra Pradesh,

6.1%Telangana, 4.6%

Gujarat, 3.6%

Karnataka,

14.1%

Kerala, 3.3%

Maharashtra, 9.2%

Tamil Nadu,

55.9%

Others, 3.2%



Annexure



Shareholding pattern

Outstanding shares – 62.6 mn

21

Major non-promoter shareholders %

shareholding

India Capital 7.4%

HDFC Mutual Fund 6.0%

Aditya Birla Mutual Fund 5.0%

DSP Mutual Fund 4.4%

Somerset Fund 3.3%

ICICI Mutual Fund 2.4%

Apax Global 2.1%

SG Jokaland Holdings 1.8%

AB Fund 1.8%

Fidelity Funds 1.5%

Parvest Equity India 1.0%

Promoters,

37.1%

Mutual

Funds,

18.5%

Bodies

Corporate

s, 2.0%

Resident

Individuals,

12.2%

Foreign

Portfolio

Investors,

26.7%

NRIs, 0.7%

Others,

2.6%



Profit and loss statement (Standalone)

22


(Rs. million) Q1FY21 Q1FY20 YoY (%) Q4FY20QOQ (%) FY20 FY19 YoY (%)

Income:

Revenue from operations 3,377 3,281 3% 3,378 0% 13,174 11,634 13%

Other income 42 3 1375% 83 -49% 337 318 6%

Total Income 3,419 3,284 4% 3,461 -1% 13,511 11,952 13%

Expenses:

Interest and other financial charges 2,104 2,015 4% 2,062 2% 8,250 7,200 15%

Employee benefit expense 169 147 15% 195 -14% 664 585 13%

Depreciation and amortization expense 35 31 15% 33 8% 129 50 157%

Other expenses 32 58 -45% 78 -60% 271 349 -22%

Provisions & write-offs 221 75 197% 403 -45% 594 170 250%

Total Expenses 2,561 2,325 10% 2,772 -8% 9,909 8,354 19%

Profit before tax 859 960 -11% 689 25% 3,602 3,598 0%

Tax expense:

Current tax 214 268 -20% 314 -32% 952 1,017 -6%

Deferred Tax 5 69 -93% -102 -104% -154 235 -165%

Net Profit/(Loss) 640 623 3% 477 34% 2,804 2,346 20%

Other Comprehensive Income -2 2 -197% -5 -64% -6 8 -171%

Total Comprehensive Income 638 625 2% 471 35% 2,798 2,355 19%



Relative performance – Q1FY21

23

Particulars Units Q1FY20 Q1FY21

Sanctions Rs. mn 6,981 1,615

Disbursements Rs. mn 6,674 1,816

Net interest income Rs. mn 1,271 1,280

PAT Rs. mn 623 640

NIM % 4.5 4.3

Yield on assets % 11.7 11.3

Cost of funds % 8.6 8.3

Spread % 3.1 3.0

Return on assets % 2.2 2.2

Return on equity % 17.0 15.0



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:

Bala S Repco Home Finance LimitedPhone: +91 44 42106650 Email: [email protected]

24

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earnings presentation q1fy21 · earnings presentation sep 2020 ecl provisioning 14 figures in rs...

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