lic housing finance limited

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CONTENTS:

* Company Background

* About The Industry

* Environmental Analysis

* Michael Porter’s Five Force Model

* Competition

* SWOT Analysis

* Company’s Competitiveness

* Conclusion


COMPANY BACKGROUND:

• LIC Housing Finance Ltd. is one of the largest

Housing Finance company in India.

• Incorporated on 19th June 1989 under the Companies

Act, 1956, the company was promoted by LIC of

India and went public in the year 1994.

• The Company is recognized by National Housing

Bank and listed on the National Stock Exchange

(NSE) & Bombay Stock Exchange Limited (BSE)

and its shares are traded only in D-mat format. The

GDR's are listed on the Luxembourg Stock

Exchange.


VISION AND MISSION

VISION

To be the best housing finance company in the

country.

MISSION

Provide secured housing finance at an affordable

cost, maximizing shareholders’ value with higher

customer sensitivity.


VALUESTransformation to a knowledge organisation

The Company is committed to the growing use and sharing of knowledge as a

driver of business success. All decisions are based on merit and a respect forsound Judgement.

Sense of ownershipAt the Company, we believe that superior performance comes from a

feeling of ownership. And ownership comes from aggressive delegation andempowerment.

Quality and autonomy in OperationsThe Company is committed to an aggressive delegation in decision-making

whereby relevant initiatives can be taken closest to the customer.

Fair and transparent business practicesEthics and transparency form the basis of the business of LIC Housing

Finance.On the macro-level, the Company complies with all the laws of the lands inwhich it operates, on the micro-level the Company respects the dignity of

everyindividual.


PRODUCTS AND SERVICES

1. Home loansi. Resident Indianii. Non resident Indianiii. Pensioneriv. Facilities

2. Corporate loansi. Corporate employeesii. Staff quartersiii. Office premisesiv. LOC to corporatesv. Co-operatives societiesvi. Public agencies

i. Builders/ Developersi. Approved financial projects

2. Othersi. Home entityii. Reverse mortgageiii. Loans to professionals.


SHAREHOLDING PATTERN:


COMPANY URL : http://www.lichousing.com//lichousing/index_new.asp

Face Value And Current Market Share: MARKET SHARE:

BSE:Sep 20, 09:17 254.60 -3.20 (-1.24%)VOLUME 29,102 PREV. CLOSE 257.80

FACE VALUE:Rs 2.00


ABOUT THE INDUSTRY:ABOUT THE INDUSTRY:


INDUSTRY VALUE CHAIN


Key success factors

The key success factors concerns:

1.Land administration2.Legal & regulatory framework3.Housing finance4.Skill and capacity building5.Building materials, appropriate design & technology.


Environmental analysisEnvironmental analysis

Socio-cultural

1. Lifestyle Changes 2. Growing Population 3. Impact Of Generation Y 4.Increase In Work Force

General economic conditions

1. Inflation 2. Fiscal Rates3. Interest Rates 4. Lower Output

Volatility.

Technology

1. Hardware Improvements2. Software Improvements 3. Econometric Modeling.

Legal and regulatory

1.Reserve Bank Of India Requirements.2. National Housing Board requirements.


PORTER’S 5 FORCE MODEL


Bargaining power of Buyers:Is high because•There are dominant buyers•It is a standardized product

Bargaining power of Suppliers:Is high because•There are dominant suppliers.•Suppliers threaten to integrate forward into the industryThreat of New

EntrantsIs high because:•Customer switching cost.•Easy to enter (banks)

Threat of Substitute ProductsIs low because:•No substitute for housing loans.

Competitive Rivalry within the industryIs high because•Rivalry is more.•Barriers to leaving an industry are high


Competitors with Market Competitors with Market shareshare

Name Last Price Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total Assets

HDFC 760.90 117,055.93 17,332.94 4,122.62 115,001.56

LIC Housing Fin

258.80 13,060.68 6,114.86 914.20 53,552.12

GRUH Finance

184.25 3,276.89 513.91 120.34 4,214.82

Dewan Housing

183.80 2,151.88 2,467.76 306.41 18,985.49

GIC Housing Fin

89.25 480.62 439.42 59.04 3,664.05

Can Fin Homes

108.85 222.98 286.83 43.76 2,329.86

Sharyans Res 55.05 81.86 12.47 4.46 179.22

*http://www.moneycontrol.com/competition/lichousingfinance/comparison/LIC


SWOT ANALYSIS

Weakness:Lethargic staffMediocre top bossesLarge scale corruption in main officeUltra-slow decision making processInternal problems between top management and lower care employees.

Strengths:Brand imageGovernment guaranteeClaims settlementPan India presenceLarge product portfolio

Opportunities:Pension marketHealth insuranceLarge real estate portfolio

Threat:Internal discordNew playersRed- tapism


COMPANY ANALYSIS

• According to the Consolidated - Audited financial statement for the Year of 2012, total net operating revenues increased with 28.10%, from INR 4,874.66 tens of millions to INR 6,244.58 tens of millions.

• Operating result increased from INR 4,148.39 tens of millions to INR 5,731.03 tens of millions which means 38.15% change.

• The results of the period decreased -5.46% reaching INR 916.23 tens of millions at the end of the period against INR 969.15 tens of millions last year.

• Return on equity (Net income/Total equity) went from 23.12% to 16.05%,

• the Return On Asset (Net income / Total Asset) went from 1.96% to 1.42%

• the Net Profit Margin (Net Income/Net Sales) went from 19.88% to 14.67% when compared to the same period of last year.

• The Debt to Equity Ratio (Total Liabilities/Equity) was 1129.68% compared to 1177.45% of last year.

• Finally, the Current Ratio (Current Assets/Current Liabilities) went from 12.07 to 5.86 when compared to the previous year.

lic housing finance limited

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