Repco Home Finance Ltd. · NSE:REPCOHOME
Repco Home Finance — H1 FY2014 Earnings Presentation
21 slides from Repco Home Finance's earnings presentation, October 2013
Slide 1: Earnings Presentation H1FY14
Earnings Presentation H1FY14 www.repcohome.com
Slide 2: Agenda
Agenda H1FY’14 Performance ► Business summary…………………………………………….……..04 ► Financial performance for H1’FY14 ……….………………..05-09 ► ICRA upgrades long term rating to AA-………………………..10 ► Management’s comment…………..……………………..….….11 Business Overview ► Company overview………………………………………………..13 ► Geographic pr
Slide 3: H1 FY’14 Performance
H1 FY’14 Performance
Slide 4: Business summary
Business summary Loans outstanding (Sept 30, 2013) Rs 40,356 million Cumulative disbursements (Sept 30, 2013) Rs 56,000 million Average loan per unit Rs 1 million Number of live accounts 45,409 Total number of employees 398 Capital adequacy ratio (CAR) 25.6% Networth (Sept 30, 2013) Rs
Slide 5: Strong growth in loan book continues – 30% YoY
Strong growth in loan book continues – 30% YoY Figures in Rs million Sanctions and disbursements Loan Book 9,000 8,437 45,000 40,356 8,000 7,597 40,000 7,000 35,000 30,978 5,669 6,000 4,959 30,000 5,000 25,000 4,000 20,000 3,000 15,000 2,000 10,000 1,000 - 5,000 H1FY13 H1FY14 - Sanctions Disbursemen
Slide 6: With robust growth in income and profits
With robust growth in income and profits Figures in Rs million Income from operations Net interest income 3,000 1,000 898 2,486 900 2,500 800 1,888 700 2,000 571 600 1,500 500 400 1,000 300 500 200 100 - - H1FY13 H1FY14 H1FY13 H1FY14 Net profit Cost to income ratio 600 20.0% 515 18.0% 15.4% 15.7% 50
Slide 7: Steadily expanding margins and returns
Steadily expanding margins and returns Spread Net interest margins 3.5% 3.3% 5.0% 4.7% 3.0% 2.8% 3.9% 2.5% 4.0% 2.0% 3.0% 1.5% 2.0% 1.0% 0.5% 1.0% 0.0% 0.0% Sept'12 Sept'13 Sept'12 Sept'13 Return on assets Return on average networth 3.0% 25.0% 22.8% 2.7% 20.6% 2.4% 2.5% 20.0% 2.0% 15.0% 1.5% 10.0% 1
Slide 8: Continuous improvement in asset quality
Continuous improvement in asset quality Figures in Rs million Gross NPA Net NPA 800 2.50% 600 1.80% 656 2.12% 672 4901.59% 1.60% 700 500 2.00% 1.40% 600 400 368 1.20% 1.67% 500 1.50% 1.00% 400 300 0.92% 0.80% 300 1.00% 200 0.60% 200 0.40% 0.50% 100 100 0.20% - 0.00% - 0.00% Sept'12 Sept'13 Sept'12 S
Slide 9: Business model lends itself to seasonal variation in NPA
Business model lends itself to seasonal variation in NPA Quarter on quarter movement in NPA Q2 NPA movement 3.5% 3.2% 2.2% 2.1% 2.8% 2.9% 3.0% 2.0% 2.6% 1.9% 2.5% 2.2% 2.2% 1.8% 2.1% 1.8% 1.7% 1.7% 1.9% 2.6% 1.8% 2.0% 2.2% 2.3% 1.7% 1.5% 1.6% 1.4% 2.0% 1.5% 1.2% 1.8% 1.6% 1.6% 1.4% 1.4% 1.5% 1.0% 1.
Slide 10: ICRA upgrades long term rating to AA-
ICRA upgrades long term rating to AA- Figures in Rs million Sources of borrowing Sources (as on 30 Sept’13) Amount Banks 20,830 Repco Bank Ltd, National Housing Bank 9,970 7% Repco Bank Ltd 2,400 National Total 33,190 Housing Bank, 30% Banks, 63% During the quarter, ICRA upgraded the rating Catego
Slide 11: Management’s comment
Management’s comment We are happy to report yet another good quarter driven by high growth in disbursements and improvement in margins. In the first half of the current year, our net interest income has grown by 57% and PAT by 45%. The robust 53% year on year growth in disbursements has driven our l
Slide 12: Business Overview
Business Overview
Slide 13: Niche housing finance company
Niche housing finance company ♦ Significant focus on providing loans to segments underserved by larger HFCs & banks Focus on under ► Target segment comprises of self employed professionals and self employed non-professionals penetrated markets ► Loans to salaried and non-salaried borrowers constitut
Slide 14: Strong base in South India; expanding footprint
Strong base in South India; expanding footprint 82 branches and 20 satellite centres Focus on under penetrated markets with two third branches in tier-II & tier-III cities Converted 8 satellite centers into branches and opened 1 new branch and 9 satellite centers during H1FY14 Region-wise loan
Slide 15: Differentiated business model
Differentiated business model Robust risk Direct marketing and management systems Low cost operations customer contact and processes ♦ Reaching out to ♦ Lean branch model with ♦ Risk management customer through direct 3-4 employees per systems at every step of & localized advertising, branch with lo
Slide 16: Annexure
Annexure
Slide 17: Shareholding pattern
Shareholding pattern As on Sept 30, 2013 Outstanding shares – 62.16 million Major Non-Promoter Shareholders % shareholding NRIs/Foreig n Carlyle (First Carlyle Growth VI) 17.74 Individuals/ Non WCP Holdings III 9.96 Resident Companie Creador I, LLC 7.46 s, 35.8% DII, 15.9% SBI Emerging Business Fund
Slide 18: H1 and Q2 FY’14 Results
H1 and Q2 FY’14 Results P&L (Rs million) Q2FY14 Q2FY13 Q1FY14 YoY QoQ H1FY14 H1FY13 YoY Interest Income 1,244 951 1,143 31% 9% 2,387 1,825 31% Interest Expenses 771 648 719 19% 7% 1,490 1,254 19% Net Interest Income 473 303 424 56% 11% 898 571 57% Non-interest Income 56 41 49 35% 14% 104 63 65% Oper
Slide 19: Balance sheet
Balance sheet (Rs million) Sept’13 Sept’12 YoY EQUITY AND LIABILITIES: Share Capital 622 464 34% Reserves and Surplus 6,238 2,924 113% Networth 6,860 3,389 102% Long-term borrowings 24,206 19,684 23% Short-term borrowings 2,988 3,067 -3% Other current liabilities 6,514 5,030 30% Provisions 510 321 5
Slide 20: Key ratios
Key ratios For period ended Sep’13 Sept’12 June’13 Mar’13 Yield 12.6% 12.4% 12.6% 12.3% Cost of Debt 9.3% 9.6% 9.4% 9.6% Spread 3.3% 2.8% 3.2% 2.8% NIM 4.7% 3.9% 4.7% 4.0% Cost to Income 15.7% 15.4% 16.4% 17.3% Return on Assets 2.7% 2.4% 2.7% 2.5% Return on Equity 20.6% 22.8% 18.8% 24.0% Gross NPA 1
Slide 21: Contact us
Contact us For any Investor Relations queries, please contact: V. Raghu, Executive Director/ Bala Ganpathy, Chief Manager, Investor Relations Pooja Dokania/Seema Shukla Repco Home Finance Limited Phone: +91 9920063991/91 124 4241441 Phone: +91 44 42106650 Email: pooja.dokania@four- Email: ed_vr@repc