Q4 FY20 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 30 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

•Voted as the ‘Brand of the

Decade 2019’ by BARC Asia

•Crossed 2,00,000 Cr in

Assets

•NSE for Best Issuer on EBP

2019

3

Q4 FY20 PAT at Rs 421.43 cr as against Rs 693.58 cr.

Q4 FY 20Revenue from operations up by 6 % to Rs 4920.17 cr

Outstanding Loan portfolio up by 8 % to Rs. 210578 cr

Individual Loan Portfolio up by 8% to Rs 196340 cr .

Q4FY 20 Loan Disbursements Rs 11325 cr against Rs 17242 cr .

Individual Home Loan Disbursements Rs. 8877 Cr as against Rs. 11743 Cr.

Net Interest Income Rs 1089 cr against Rs 1202 for Q4FY19

Net Interest Margins 2.34 % for FY20 as against 2.38% for FY19

Stage 3 EAD at 2.83% as against 2.73% as on 31.12.2019.

Executive Summary – Q4 FY20/FY 20

4

WHO announced COVID-19 outbreak as a pandemic on 11 March 2020.India was in Lockdown in various phases

since March 25,2020.Currently, the country is under the fifth phase of the lockdown which is also known as

Unlock 1.0, which entails much more relaxations than the previous ones including rail, road and domestic air

travel.

During Lockdown ,the Company seamlessly moved to the BCP and continued all regular operations through Work

from Home.

Moratorium- The Company offered 3 Months moratorium to its customers from March 2020 to May 2020 as per

Reserve Bank of India (RBI) Guidelines. RBI extended moratorium till 31st August 2020.About 25% of the EMI’s are

under moratorium.

Company has continued to raise funds through Banks, Capital Market, Refinance Schemes and Deposits during this

period.

Most of the Offices now opened for business, following relaxations in lockdown and guidelines issued by respective

authorities. Disbursement has also commenced.

Impact of Covid 19

5

Disbursement (Rs. Cr) CAGR 7%

Profit After Tax (Rs. cr) CAGR 15%Income (Rs. cr) CAGR 12%

Loan Portfolio (Rs.cr) CAGR 14%

Update – last 5 years

3615141541

4937853908

46936

0

10000

20000

30000

40000

50000

60000

2016 2017 2018 2019 2020

125173145568

167467194646 210578

0

50000

100000

150000

200000

250000

2016 2017 2018 2019 2020

1248514080 14841

1736519670

0

10000

20000

2016 2017 2018 2019 2020

16611931 2003

2431 2401

0500

10001500200025003000

2016 2017 2018 2019 2020

6

Gross & Net NPAs

Operating Expense to Total Income

Total Provisions* (Rs cr)

Profit per employee (Rs. lacs)

* For 2019 and 2020 ECL Provisions of Stage 1,2 and 3

Update – last 5 years

0.45% 0.43%0.78%

1.54%

2.86%

0.22%0.14% 0.43%

1.08%

1.99%

0%

1%

2%

3%

4%

2016 2017 2018 2019 2020

Gross

Net820 1038

12491659

2612

0

500

1000

1500

2000

2500

3000

2016 2017 2018 2019 2020

96.23105.34

95.22 105.28 100.41

0

50

100

2016 2017 2018 2019 2020

3.75%4.34%

2.98% 2.74% 3.14%

0%

5%

2016 2017 2018 2019 2020

Yield & Cost of Funds on portfolio

FY19 FY20

Yield on Advances onPortfolio

10.53% 10.02%

Wtd Avg cost of funds onTotal Borrowed Funds

8.49% 8.08%

NIMs 2.38% 2.34%

10.53%

10.02%

8.49%8.08%

2.38%2.34%

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%

7

8

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

32.9138.26 39.68

48.16 47.59

0102030405060

2016 2017 2018 2019 2020

181.25219.49 251.49

322.19360.47

0

200

400

2016 2017 2018 2019 2020

1.44% 1.43%1.28% 1.34%

1.18%

0%

1%

2%

2016 2017 2018 2019 2020

18.00%20.00%

19.00%17.00%

16.00%14.00%

0%

10%

20%

2015 2016 2017 2018 2019 2020

• 9 Regional Offices

• 24 Back Offices

• 282 Marketing Offices

• Rep offices in Dubai & Kuwait

• Coverage of more than 450 centres

• 2392 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

2020 282 24 9 2392 210578

Widening footprint…improved efficiencies

9

HOME LOAN AGENTS (HLAs)

(Agents of LIC)

DIRECT SALES AGENTS (DSAs)

(Small Firms/Companies etc)

CUSTOMER RELATIONS

ASSOCIATES (CRAs)

(Individual Agents of the Company)

282Marketing Offices

44 branches of

LICHFL Financial Services(100% subsidiary of LICHFL)

Distribution Network

10

85%

15%

Customer Type (No.)

Salaried Self Employed

58%21%

5%

8%8%

Originations by source

HLA DSA CRA DIRECT LICHFLFSL

₹ 20.0

₹ 21.0

₹ 22.0

₹ 23.0

₹ 24.0

₹ 25.0

FY19 FY20

Incremental Ticket Size(Rs lacs)

43%85

Offices

57%197

Offices

Top 7 cities & Others

Top 7 cities Others11

Origination Pattern & Average Ticket Size

Loan Book Composition

31.03.2020

O/s Portfolio Rs 210578 cr

Retail Home Loans76.9%

Retail LAP/ other16.3%

Developer Loans6.8%

31.03.2019

O/s Portfolio Rs 194646 cr

12

Retail Home Loans

76.08%

Retail LAP/ other17.2%

Developer Loans6.72%

13

Installment to Net Income RatioOn Incremental Sanctions

For FY18 31%

For FY19 32%

For FY20 31%

Loan To Value RatioOn Incremental Sanctions

For FY18 44%

For FY19 46%

For FY20 49%

Pure Floating Rate LoansTo Outstanding Portfolio

As of FY18 74%

As of FY19 93%

As of FY20 92%

PrepaymentLump Sum/ opening book

For FY18 11.0%

For FY19 10.2%

For FY20 10.1%

Individual Loans – Portfolio Stats

14

Financial Highlights

FY2020 FY2019

Return on Average Equity (%) 14% 16%

Return on Average Assets for qtr (%) 1.18% 1.34%

Earnings per share (on Rs 2 pd up) 47.59 48.16

Dividend per Share (on Rs 2 pd up) 8.00 7.60

Capital Adequacy Ratio

Tier I

Tier II

Total

Sept 2019

12.49

1.88

14.37

March 2019

12.30

2.06

14.36

15

Executive Summary-Q4/FY20Var Q4 FY20 Q4

FY19

Var FY20 FY19

Interest Income on Individual Loans 4.5% 4482.82 4290.30 12% 17928.15 15992.00

Interest Income on Project Loans 18% 364.56 309.41 31% 1533.80 1170.80

Total 5% 4847.38 4599.71 13% 19461.95 17162.80

Processing Fees & Other Fees (32%) 5.05 7.45 13% 39.43 34.83

Other Income (32%) 34.52 50.86 1% 168.38 166.95

Gross Income 5% 4886.94 4658.01 13% 19669.76 17364.59

Interest Expenses 11% 3764.23 3398.10 15% 14783.86 12891.55

Net Interest Income (9%) 1089.32 1201.61 10% 4688.96 4271.25

Salary & Other Establishment Exp. 36% 228.77 168.45 30% 616.69 475.42

Net loss on derecognition of Financial

Instruments under amortised cost category

39.98 2.08(82%)

47.49 267.71

Impairment of Financial Instruments (74%) 27.25 103.15 172% 952.73 350.35

Profit before Tax (16%) 826.72 986.24 (3%) 3268.99 3379.55

Income Tax Provision including Deferred Tax (%) 405.29 292.66 (9%) 867.15 948.58

Net Profit (39%) 421.43 693.58 (1%) 2401.83 2430.97

Executive Summary – Q4/FY20

VarQ4

FY20

Q4

FY19Var FY20 FY19

Disbursements

Individual(28%) 10912 15211 (5%) 44318 46780

Project(80%)

413 2031(63%)

2618 7128

Total(34%)

11325 17242(13%)

46936 53908

Outstanding Portfolio

Individual8%

196340 181569

Project9%

14237 13077

Total8%

210578 194646

Net Interest Margins(%) 2.10% 2.56% 2.34% 2.38%

Weighted average cost of funds 8.08% 8.49%

Yield on advances annualised 10.02% 10.53%

Spreads 1.94% 2.04%

Rs cr

Outstanding Borrowings – Rs. 191209 crSource Wtd

Avg

Cost

(%)

Banks & Institutions 7.76%

Non Convertible Debenture 8.31%

National Housing Bank 7.56%

Sub. Bonds & Upper Tier II 8.95%

Commercial Paper 6.51%

Deposits 7.90%

Total 8.08%

as on 31.3.2020

Liability Profile

During FY20, Incremental Cost of funds was 7.90%

Bank22%

NCD65%

NHB1%

Sub Debt1%

CP4%

Deposits7%

17

18

Change in Liability Mix- last 4 yrs

Wtd. Avg. cost

of Funds

Bank funding has

reduced from

32% in FY12 to

25% in FY14.

Retail Deposits

increased to 2.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY20 FY19 FY18 FY17

Others

Deposit

NHB

Bank

NCD

8.08% 8.49% 8.31% 8.59%

19

NIMs

2.25%

2.38% 2.34%

1.50%

2.50%

FY

18

FY

19

FY

20

NIMs (for the quarter)

20

Classification of Assets

Exposure At Default % March-20 March-19

Stage 1 92.51% 94.01%

Stage 2 4.66% 4.41%

Stage 3 2.83% 1.58%

Total 100% 100%

ECL Provision March-20 March-19

Stage 1 Rs 0.03 Cr Rs 23.91 Cr

Stage 2 Rs.0.15Cr Rs.111.53 Cr

Stage 3 Rs.2612 Cr Rs. 1524.04 Cr

21

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