August 13, 2018 National Stock Exchange of India Limited, BSE - - PDF document

Home Finance zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA REPCO HOME FINANCE LIMITED.

(Promoted by Repco Bank-Govt. of India Enterprise) CIN : L65921N2000PLC044655

RHE'L/SE/17/2018-19 National Stock Exchange of India Limited, Exchange Plaza, Bandra Kuria Complex, Bandra (E) Mumbai-400 051 NSE Symbol: REPCOHOME August 13, 2018 BSE Limited Phiroze Jeejeebhoy Towers Dalai Street Mumbai- 400001 BSE Security Code: 535322 Kind Attn: Listing Department Dear Sir, Sub: Investor Presentation on financial results for the Quarter ended 30 June 2018 We submit herewith a copy of the presentation on the financial performance of the Company for the quarter ended 30 June 2018. This is submitted for your information and records. Thanking You, Yours Faithfully, Company Secretary

Corporate Office : zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA

3rd Floor, Alexander Square, New No: 2 (Old No. 34 & 35) Sardar Patel Road, Guindy, Chennai - 600 032. Phone : 044 -42106650 Fax: 044 -42106651 E-mail : co@repcohome.com, www.repcohome.com

Registered Office :'REPCO TOWER, No: 33, North Usman Road, T.Nagar, Chennai - 600017. Phone : 044-28340715 / 4037/ 2845

Repco Home Finance Limited

Earnings Presentation  August 2018 www.repcohome.com

Earnings Presentation Q1FY19

Repco Home Finance Limited

Earnings Presentation  August 2018

Agenda



Q1FY19 Performance

►

Business summary…………………………………………….…….

►

Financial performance for Q1FY19 ……… ……………………

►

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



Geographic Presence

►

Footprint.………………………………………………..

►

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



Annexure

Repco Home Finance Limited

Earnings Presentation  August 2018

Q1FY19 Performance

Repco Home Finance Limited

Earnings Presentation  August 2018

• Loans outstanding (June 30, 2018)
• Rs. 1,000,745 mn
• Net worth (June 30, 2018)
• Rs. 13,184 mn
• Tier 1 capital adequacy ratio 23.24% (Provisional)
• Average loan per unit
• Rs. 1.4 mn
• Number of live accounts

84,741

• Current Employee Strength

843

• Gross NPA (%) (June 30, 2018)

3.96%

• Net NPA (%) (June 30, 2018)

2.39%

• Expected credit loss (%) (June 30, 2018)

0.66%

Business Summary

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Repco Home Finance Limited

Earnings Presentation  August 2018

Q1FY19 performance

5% 2,739 2,869 8% 1,056 1,143 9% 560 609 22% 28% 5,484 6,198 14% 72,427 82,362

Income from operations Net Interest Income Profit after Tax Sanctions Disbursements Home loan book

Figures in Rs million

Q1FY18 Q1FY19 Q1FY18 Q1FY19

7,039 7,580

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Repco Home Finance Limited

Earnings Presentation  August 2018

Asset book

Loan Book Sanctions and disbursements Mix of loan portfolio Loan book composition

Figures in Rs million 6 6,198 7,580 5,484 7,039 3,000 4,000 5,000 6,000 7,000 8,000 Q1FY18 Q1FY19 Sanctions Disbursements 90,093 1,00,745 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 1,00,000 June'17 June'18 40.0% 42.7% 60.0% 57.3% 0% 20% 40% 60% 80% 100% June'17 June'18 Salaried Non Salaried 80.4% 81.8% 19.6% 18.2% 0% 20% 40% 60% 80% 100% June'17 June'18 Home loans Loans against property

Repco Home Finance Limited

Earnings Presentation  August 2018

Net interest income Total income Net worth Net profit

Figures in Rs million

Income and earnings growth

7 2,741 2,872

• 500

1,000 1,500 2,000 2,500 3,000 3,500 Q1FY18 Q1FY19 1,056 1,143 500 600 700 800 900 1,000 1,100 1,200 Q1FY18 Q1FY19 560 609 500 520 540 560 580 600 620 Q1FY18 Q1FY19 11,373 13,184 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 June'17 June'18

Repco Home Finance Limited

Earnings Presentation  August 2018

Other opex Employee cost Cost to income ratio

Figures in Rs million

Operating cost

8 109 130 20 40 60 80 100 120 140 Q1FY18 Q1FY19 59 89 20 40 60 80 100 Q1FY18 Q1FY19 15.1% 18.4% 0.0% 5.0% 10.0% 15.0% 20.0% Q1FY18 Q1FY19

Repco Home Finance Limited

Earnings Presentation  August 2018

Net interest margin Return on equity Return on assets

Profitability ratios

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Spread

4.7% 4.6% 3.0% 3.2% 3.4% 3.6% 3.8% 4.0% 4.2% 4.4% 4.6% 4.8% Q1FY18 Q1FY19 3.3% 3.2% 2.0% 2.2% 2.4% 2.6% 2.8% 3.0% 3.2% 3.4% Q1FY18 Q1FY19 2.5% 2.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% Q1FY18 Q1FY19 17.4% 19.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Q1FY18 Q1FY19

Repco Home Finance Limited

Earnings Presentation  August 2018

Gross NPA Net NPA

Asset quality & provisioning

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Provision coverage ratio

Figures in Rs million Note – Rs. 380 Mn of loans outstanding backed by repossessed collateral assets is included in the aforementioned Jun’18 GNPA

• amount. Details of the pool –

Average ticket size – Rs. 2.2 mn LTV – 56% Provision carried in BS – 100% The aforementioned amount EXCLUDES loans outstanding backed by repossessed collateral assets but part of the pool technically written off during Q4FY18. 3,571 3,987 3.97% 3.96% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00%

• 1,000

2,000 3,000 4,000 5,000 June'17 June'18 Gross NPA Gross NPA % 2,396 2,371 2.69% 2.39% 0.40% 0.90% 1.40% 1.90% 2.40% 2.90%

• 500

1,000 1,500 2,000 2,500 3,000 June'17 June'18 Net NPA Net NPA % 32.9% 40.5% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% June'17 June'18

Repco Home Finance Limited

Earnings Presentation  August 2018

Asset quality

90+ dpd(%)

11 2.2% 2.4% 4.2% 2.6% 4.0% 3.4% 3.7% 2.9% 4.0% 1.2% 1.3% 3.1% 1.4% 2.6% 1.9% 2.1% 1.3% 2.1% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep'17 Dec'17 Mar'18 June'18 Gross NPA Net NPA

Repco Home Finance Limited

Earnings Presentation  August 2018

Mix/Product-wise GNPA (%)

12 1.5% 5.6% 4.0% 1.2% 4.1% 2.9% 1.8% 5.4% 4.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Salaried Non-Salaried Overall June'18 Mar'18 June'17 3.0% 6.8% 4.0% 2.4% 4.9% 2.9% 3.4% 6.4% 4.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Housing Loan LAP Overall June'18 Mar'18 June'17

Repco Home Finance Limited

Earnings Presentation  August 2018

Diversified borrowing profile

Source (Rs mn) Average cost Jun'17 Jun'18 % change National Housing Bank 7.6% 10,536 7,292

• 31%

Repco Bank 8.1% 4,946 6,253 26% Commercial Banks 8.2% 45,089 53,321 18% NCDs 8.5% 11,570 12,370 7% CPs 7.9% 3,500 4,000 14% Total 8.2% 75,641 83,236 10%

*Weighted average cost

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14% 9% 7% 8% 60% 64% 15% 15% 5% 5% 0% 20% 40% 60% 80% 100% Jun'17 Jun'18 National Housing Bank Repco Bank Commercial Banks NCDs CPs

Repco Home Finance Limited

Earnings Presentation  August 2018

Geographic Presence

Repco Home Finance Limited

Earnings Presentation  August 2018

Footprint

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Significant presence Strong presence Recent expansion



Presence in 11 states and 1 Union Territory with 140 branches and 23 satellite centers.



Presence beyond South: branches in West Bengal, Orissa, Maharashtra, Gujarat, Network Expansion

Not present yet 54 72 88 92 122 142 150 156 160 163 30 50 70 90 110 130 150 170 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Jun'18

Repco Home Finance Limited

Earnings Presentation  August 2018

Region-wise loan book

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Annualized Exposure

States June'18 Mar'18 June'17 YoY growth QoQ growth

Andhra Pradesh 6.8% 6.8% 6.9% 10% 9% Telangana 4.3% 4.1% 3.8% 26% 27% Gujarat 2.6% 2.5% 2.2% 37% 37% Karnataka 13.1% 12.7% 12.2% 20% 23% Kerala 3.9% 4.0% 3.9% 13% 7% Maharashtra 7.6% 7.5% 6.7% 28% 20% Tamil Nadu 58.9% 59.8% 61.8% 7% 4% Others 2.8% 2.7% 2.5% 23% 20%

Total 100% 100% 100% 12% 10% Andhra Pradesh, 6.8% Telangana, 4.3% Gujarat, 2.6% Karnataka, 13.1% Kerala, 3.9% Maharashtra, 7.6% Tamil Nadu, 58.9% Others, 2.8%

Repco Home Finance Limited

Earnings Presentation  August 2018

Annexure

Repco Home Finance Limited

Earnings Presentation  August 2018

Shareholding pattern

Outstanding shares – 62.56 mn

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Major non-promoter shareholders % shareholding Aditya Birla Sun Life Mutual Fund 7.0% Franklin Templeton Mutual Fund 6.4% DSP Blackrock Small Cap Fund 6.2% Pabrai Investment Funds 5.9% India Capital Fund Limited 3.4% Apax Global Alpha Limited 2.1% HSBC Global Investment Funds 2.1% Alliance Bernstein India Growth (Mauritius) Limited 1.8% DSP Blackrock Core Fund 1.1% Promoter s, 37.1% Mutual Funds, 20.1% Bodies Corporat es, 1.5% Resident Individua ls, 9.8% Foreign Portfolio Investors, 27.5% NRIs, 1.2% Others, 2.8%

Repco Home Finance Limited

Earnings Presentation  August 2018

Profit and loss statement

(Rs. million) IND AS –Q1 FY19 IND AS –Q1 FY18 YoY (%) IGAAP -Q4 FY18 IGAAP - FY18 Income: Revenue from operations 2,869 2,739 5% 2,832 11,054 Other income 3 2 24% 1 23 Total Income 2,872 2,741 5% 2,833 11,077 Expenses: Interest and other financial charges 1,684 1,630 3% 1,610 6,483 Employee benefit expense 130 109 19% 120 488 Depreciation and amortization expense 10 8 35% 8 31 Other expenses 79 52 53% 87 262 Provisions & write offs 47 88

• 47%

143 670 Total Expenses 1,949 1,885 3% 1,967 7,934 Profit before tax 923 855 8% 866 3,143 Tax expense: Current tax 274 240 14% 249 1,024 Deferred Tax 39 55

• 29%

51 58 Net profit/(loss) 609 560 9% 566 2,061 Other comprehensive income

• 4
• 92%
• Total comprehensive income

609 556 9% 566 2,061

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Repco Home Finance Limited

Earnings Presentation  August 2018

Relative performance – Q1FY19

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Particulars Units Q1FY18 Q1FY19 Sanctions

• Rs. Mn

6,198 7,580 Disbursements

• Rs. Mn

5,484 7,039 Net interest income

• Rs. Mn

1056 1,143 PAT

• Rs. Mn

560 609 NIM % 4.7 4.6 Yield on assets % 12.0 11.4 Cost of funds % 8.7 8.2 Spread % 3.3 3.2 Return on assets % 2.5 2.5 Return on equity % 17.4 19.8

Repco Home Finance Limited

Earnings Presentation  August 2018

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 , Investor Relations Repco Home Finance Limited Phone: +91 44 42106650 Email: bala@repcohome.com

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