Q4 FY18 Investor Update

1989

1994

2002

2004

2009

2011

2012

2013

Incorporated

IPO

AAA Rating

GDR Issue

Crossed Rs. 500 crs profit

Crossed Rs. 50,000 Cr loan portfolio

• Best HFC by CNBC TV 18

• Construction Industry Award

•Crossed Rs. 1000 cr profit &

Rs 75,000 Cr assets

20152014

• Best HFC by

ABP News

•Crosses Rs 1

lakh cr in portfolio

•Best Housing

Finance Co. by

BFSI Awards

• Best data quality

in HFC

by CIBIL

LICHFL: A Journey of 29 Years…

•Business Today-

Best CEO Award

• Business World -

Most Respected Co

Award

•Outlook Money-Best

HFC

•Best HFC by ABP

News

•Best Data Quality by

CIBIL

•Asia Pacific

Entrepreneurship

Award

•Power Brands

Awards by Franchise

India

2016

2017

•Crosses 150,000 cr in assets

•Outlook Money-Best HFC

•Business Today BFSI Best

CEO

•NSE for highest Debt

Issuance

2

3

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

Executive Summary – Q4 FY18

4

Disbursement (Rs. Cr) CAGR 18%

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

Loan Portfolio (Rs.cr) CAGR 16%

Update – last 5 years

2527130327

3615141541

49378

0

10000

20000

30000

40000

50000

2014 2015 2016 2017 2018

91341108361

125173144534

0

25000

50000

75000

100000

125000

150000

2014 2015 2016 2017 2018

933510799

12485 14080

0

5000

10000

15000

2014 2015 2016 2017 2018

1317 13861661 1931 1990

0

500

1000

1500

2000

2500

2014 2015 2015 2017 2018

166363

15073

5

Gross & Net NPAs

Operating Expense to Total Income

Total Provisions* (Rs cr)

Profit per employee (Rs. lacs)

* Provisions Including Provisions on Std. Assets

Update – last 5 years

0.67%

0.46% 0.45%0.43%

0.78%

0.39%

0.22% 0.22%0.14%

0.43%

0%

1%

2014 2015 2016 2017 2018

Gross

Net 707 704820

10381249

0

250

500

750

1000

1250

1500

2014 2014 2016 2017 2018

87.00 87.2996.23 105.34 94.62

0.00

50.00

100.00

2014 2015 2016 2017 2018

3.35% 3.46% 3.75%4.34% 4.30%

0%

5%

2014 2015 2016 2017 2018

6

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

Return on Avg Equity

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

Return on Avg Loan Assets

Update – last 5 years

26.10 27.47 32.9138.26 39.42

0

10

20

30

40

50

2014 2015 2016 2017 2018

149.00 154.94 181.25219.49

251.49

0

100

200

300

2014 2015 2016 2017 2018

1.56% 1.39% 1.44% 1.43%1.30%

0%

1%

2%

2014 2015 2016 2017 2018

19.00% 18.00%20.00% 19.00%

17.00%

0%

10%

20%

2014 2015 2016 2017 2018

23 New Marketing Offices proposed to be opened in FY 2019

• 9 Regional Offices

• 23 Back Offices

• 249 Marketing Offices

• Rep offices in Dubai & Kuwait

• Coverage of more than 450 centres

• 2103 Employees

Back offices

Operating offices

Regional offices

Corporate office

Nagercoil

ThiruvananthapuramKottayam

Ernakulam

Kozhikode

Thrissur

Tirumangalam

Madurai

Thanjavur

Pondicherry

Tiruchirapalli

Coimbatore

Salem

Vellore

ChennaiHosurMysore

Mangalore

Bengaluru

Panjim

Vashi

Mumbai

NelloreHubliTirupati

Bellary

Anantapur

Kurnool

Guntur

Kakinada

Vijayawada

Hyderabad Rajahmundry

Visakapatnam

Warangal

Bhubaneshwar

Kolkata

Silchar

Guwahati

Siliguri

Gangtok

Patna

ShimlaJalandharAmritsar

LudhianaChandigarh

Dehradun

HaldwaniKarnal

Bareilly

Ghaziabad

New Delhi

AgraLucknow

Kanpur

JaipurAjmer

Gwalior

Bikaner

Jodhpur

Rajkot

Udaipur

Ahmedabad

Vadodara Indore

Bhopal

Allahabad

Jabalpur

Varanasi

Ranchi

Jamshedpur

RourkelaBilaspur

RaipurNagpurJalgaonSurat

Vapi

AurangabadNasik

Kalyan

ThaneJogeshwari

Pune

Kolhapur

Belgaum

Gulburga

Nallasopara

Kota

Hassan

Erode

Kannur

Kollam

Palghat

Gandhidham

Satara

Durg-Bhilai

Gorakhpur

Meerut

Behrampur

Cuttack

Dhanbad

Durgapur

Jorhat

Malda

GurgaonFaridabad

Noida

AmbalaBhatinda

HisarPatiala

Large geographic presence

Year No of

Marketing

Offices

No of Back

offices

No of

Regional

Offices

No of

Employees

Lon

Portfolio

Rs cr

2003 105 - 6 870 7772

2008 125 14 6 985 21936

2013 194 16 7 1446 77812

2018 249 23 9 2103 166363

Widening footprint…improved efficiencies

7

HOME LOAN AGENTS (HLAs)

(Agents of LIC)

DIRECT SALES AGENTS (DSAs)

(Small Firms/Companies etc)

CUSTOMER RELATIONS

ASSOCIATES (CRAs)

(Individual Agents of the Company)

249Marketing Offices

49 branches of

LICHFL Financial Services(100% subsidiary of LICHFL)

Distribution Network

Total No of Agents > 12500:

growth of over 20% y-o-y

8

83%

17%

Customer Type (No.)

Salaried Self Employed

61%19%

7%

4%9%

Originations by source

HLA DSA CRA DIRECT LICHFLFSL

₹ 18.0

₹ 19.0

₹ 20.0

₹ 21.0

₹ 22.0

₹ 23.0

₹ 24.0

FY17 FY18

Incremental Ticket Size(Rs lacs)

45%81

Offices

55%168

Offices

Top 7 cities & Others

Top 7 cities Others9

Origination Pattern & Average Ticket Size

Loan Book Composition

31.03.2018

O/s Portfolio Rs 166363 cr

Retail Home Loans

80.8%

Retail LAP/ other14.3%

Developer Loans4.9%

31.3.2017

O/s Portfolio Rs 144534 cr

10

11

Installment to Net Income RatioOn Incremental Sanctions

For FY16 33%

For FY17 32%

For FY18 31%

Loan To Value RatioOn Incremental Sanctions

For FY16 47%

For FY17 45%

For FY18 44%

Pure Floating Rate LoansTo Outstanding Portfolio

As of FY16 47%

As of FY17 70%

As of FY18 74%

PrepaymentLump Sum/ opening book

For FY16 11.9%

For FY17 10.9%

For FY18 11.0%

Individual Loans – Portfolio Stats

Executive Summary – Q4/FY18

VarQ4

FY18

Q4

FY17Var 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

Rs cr

Executive Summary – Q4/FY18

VarQ4

FY18

Q4

FY17Var 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%

Rs cr

14

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

Tier I

Tier II

Total

Sept 2017

13.36

2.68

16.04

March 2017

13.35

2.29

15.64

Yield & Cost of Funds on portfolio

FY17 FY18

Yield on Advances onPortfolio

10.83% 10.12%

Wtd Avg cost of funds onTotal Borrowed Funds

8.59% 8.31%

NIMs 2.70% 2.38%

10.83%

10.12%

8.59%8.31%

2.70%

2.38%

2.00%

2.10%

2.20%

2.30%

2.40%

2.50%

2.60%

2.70%

2.80%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

15

Outstanding Borrowings – Rs. 145339 crSource Wtd

Avg

Cost

(%)

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%

Total 8.31%

as on 31.3.2018

Liability Profile

During Q4FY18, Borrowings were Rs 27962 cr @ 7.76%

Bank10%

NCD79%

NHB1%

Sub Debt2%

CP3%

Deposits*5%

* Includes Corporate Deposits of Rs 3352 cr16

17

NIMs

2.40% 2.47%

2.71%2.97%

2.49%

0.00%

1.00%

2.00%

3.00%

Q4

FY

14

Q4

FY

15

Q4

FY

16

Q4

FY

17

Q4

FY

18

NIMs (for the quarter)

18

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

Gross & Net NPAs

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

19

Gross & Net NPAs

0.67%

0.46%0.45% 0.43%

0.78%

0.39%

0.22%0.22%

0.14%

0.43%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

Q4

FY

14

Q4

FY

15

Q4

FY

16

Q4

FY

17

Q4

FY

18

Gross NPA Net NPA

20

DISCLAIMER

This presentation is made purely for information. We have attempted to provide relevantinformation which we believe will help in knowing the Company. The users may use their ownjudgment and are advised to make their own calculations before deciding on any matter basedon 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 nottaken by the viewers or the users of this presentation or for any claims, losses etc.

Thank you