GRUH Finance — H1 FY2018-19 Earnings Presentation
36 slides from GRUH Finance's earnings presentation, Oct 31, 2018
Slide 1: GRUH Finance Limited cover letter to exchanges
GRUN flNANCE L~MITED We help you build homes SEC: 2018 October 30, 2018 The BSE Ltd. National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, “Exchange Plaza”, 26th Floor, Dalal Street Bandra-Kurla Complex, Mumbai 400 001 — Bandra CE ), Mumbai 400 051 BSE Code No: 511288 Symbol : GRUH Kind A
Slide 2: GRUH Finance Limited - Sept 2018
GRUH Finance Limited (A Subsidiary of HDFC Limited) SEPT 2018 1
Slide 3: GRUH Profile
GRUH PROFILE {¥GRUH We help you build homes
Slide 4: GRUH company profile
• Promoted by HDFC & AKFED on July 21, 1986 p • Commenced operations in 1988 from Ahmedabad • A subsidiary of HDFC LTD • Regulated by National Housing Bank (NHB) • Recognized by NHB for Refinance facility • Retail Network of 194 offices across 11 States & one Union Territory • Consistent track recor
Slide 5: Shareholding Pattern as on Sept 30, 2018
Shareholding Pattern as on Sept 30, 2018 Financial Institutions, Mutual Funds & Banks Public / Resident Indian 9.97% 17.63% Corporate Bodies 2.01% Financial Institutional Investors (FIIs) 10.47% Non_Resident Indians 2.06% Promoter ‐ HDFC Ltd. 57.86% 4
Slide 6: Ratings
Ratings g • Public Deposits : – ‘MAAA’ by ICRA and – ‘FAAA’ by CRISIL • Non-Convertible Debentures : ‘AAA (Stable)’ by ICRA and CRISIL • Subordinated NCD: ‘AAA (Stable)’ by ICRA and CRISIL • Commercial C i lP Paper : ‘A1 ‘A1+’’ b by ICRA and d CRISIL “These rating g indicates high g safety y with re
Slide 7: GRUH's contribution to Housing Stock
GRUH’s contribution to Housing Stock • Cumulative Housing Units Financed – 4,38,030 • Cumulative Disbursement of Rs. 31,193 Crore • Cumulative Housing Units Financed in Rural Areas - 2,20,341 • Cumulative Disbursement in Rural Areas(*) Rs. 12,771 Crore • Cumulative Disbursement under Pradhan Mantri
Slide 8: Performance Highlights
Performance Highlights July 2018 – Sept 2018 7
Slide 9: Performance Highlights
PERFORMANCE HIGHLIGHTS • Loan Disbursement during the period – Rs. 2,738 Crore – Average Loan Per Unit Disbursed during the year - Rs. 9.41 Lac • Outstanding Loan Assets of Rs. 16,663 Crore - 95% of the Loans are Retail - 46% of the loans are at location where population is less than 50,000 • GRUH r
Slide 10: Performance of the Half-year and Quarter
PERFORMANCE HIGHLIGHTS Performance of the Half-year Sept'18 Sept'17 Growth % Loan Assets 16,663 14,271 17 Disbursement 2,738 2,483 10 Profit After Tax 220 184 20 Performance of the Quarter Sept'18 Sept'17 Growth % Disbursement 1,511 1,283 18 Profit After Tax 105 88 20 9
Slide 11: Key Financial Ratio
Key Financial Ratio Key Ratios As At As At As At Sept’2018 June’2018 Sept’2017 Net Interest Margin to ATA (%) 4.08 4.34 4.47 Yield on A Average erage Loans (%) 10 93 10.93 11 03 11.03 11 31 11.31 Cost of Borrowings (%) 7.55 7.40 7.65 Cost to Income Ratio (%) 15.93 14.19 15.89 Credit Cost to ATA (%)
Slide 12: Balance Sheet
Balance Sheet (Rs. in Crore) Sept’2018 Sept’2017 Growth (%) Sources of Funds Share Capital 146.48 73.08 100 p Reserves & Surplus 1515.25 1256.80 21 Borrowings 16489.48 12921.97 28 Current Liabilities & Provisions 352.06 413.65 (15) 18503.27 14665.50 26 Application of Funds Loan Assets 16662.89 14271
Slide 13: Income Statement
Income Statement (Rs. in Crore) Particulars Sept’2018 Sept’2017 Growth (%) Interest income 902.20 793.79 14 Interest expenses 553.21 479.42 15 Net interest Margin 348.99 314.37 11 Non-Interest Income 30.53 26.84 14 Non-Interest Expenses 60.43 54.17 12 p Provisions for Expected Credit Loss and Write
Slide 14: Reconciliation of Net Profit under Indian GAAP and Ind AS
Reconciliation of Net profit as reported under erstwhile Indian GAAP and Ind AS for Q2 & H1 FY 17-18 (R iin C (Rs. Crore)) Particulars Q2 FY 17-18 H1 FY 17-18 Net profit reported as per previous Indian GAAP 77.77 150.01 Add/(Less) : Adjustments Adj stments for GAAP difference Increase in interest in
Slide 15: Loan Assets, PAT and NIM trends
Loan Assets (Rs. in Crores) Profit After Tax 20000 250 16,663 220 T (Rs. in Crore) 15000 200 150 10000 6,153 100 68 5000 PAT 50 0 0 Sept'13 Sept'14 Sept'15 Sept'16 Sept'17 Sept'18 Sept'13 Sept'14 Sept'15 Sept'16 Sept'17 Sept'18 Loan Assets ( Rs. in Crores) PAT ( Rs. in Crores) NIM & NIM to Average T
Slide 16: Cost to Income Ratio and Asset Ratios
NIM & NIE to Average Total Assets PBT & PAT to Average Total Assets 5.00 4.50 4.50 4.00 4.49 4.47 3 50 3.50 3.96 3.88 4.00 4.39 4.43 4.34 3.77 4.11 4.20 4.08 3.00 3.53 3.55 3.52 3.50 3.92 3.29 2.50 3.11 3.09 2.86 3.00 2.78 2.82 2.00 2.61 2.57 2.37 2.50 1.50 2.05 2.04 2.15 2.00 1.00 0 50 0.50 1.50 0.
Slide 17: Composition of Borrowings
Composition of Borrowings 60 57 50 46 42 40 31 30 22 23 22 20 16 13 11 10 8 9 0 Sept'16 Sept'17 Sept'18 Banks/NHB NCDs CPs Public Deposits 16
Slide 18: Composition of Assets
Composition of Assets 120% 97% 98% 100% 91% 80% 60% 40% 20% 8% 2% 1% 1% 1% 1% 0% Sep-16 Sep-17 Sep-18 Loan Assets Bank Deposits Current Assets & Others 17
Slide 19: Interest Rate profile of Loan Assets and Borrowings
Interest Rate profile of Loan Assets and Borrowings (% Composition) Fixed Rate Variable Rate Total Loans 5 95 100 Borrowings 68 32 100 18
Slide 20: NPAs under Ind AS
NPAs under Ind AS (Rs In Crore) (Rs. Particulars HY 1 FY Q1 HY 1 1819 FY 1819 FY 1718 Loan Assets 16 663 16,663 15 857 15,857 14 271 14,271 Stage - III Loan Assets 147 136 96 ECL Provision required as per Ind AS norms on Total Loan 50 42 37 Assets ECL Provision required as per Ind AS on Total Loans
Slide 21: NPAs under NHB Norms
NPAs under NHB Norms (Rs. In Crore) Particulars H1 Q1 H1 FY 1819 FY 1819 FY 1718 Loan Assets 16,663 15,857 14,271 Gross NPAs 147 136 96 Gross NPAs (%) 0.88 0.86 0.67 Provisions as per NHB Norms: - Standard Assets 67 66 65 - NPAs 32 30 21 99 96 86 Actual Provisions carried in Books 129 122 134 Excess
Slide 22: Market and Business Overview
Market and Business Overview 21
Slide 23: Market Scenario
Market Scenario • Housing shortage of 10 mn units in Urban Areas & 43.67 mn in Rural Areas. • Country’s population is growing at 1.2% p.a. • 32% of Country’s population is in Urban Areas, where shortage of housing units it is i estimated ti t d att 10 mn units it • Increasing Urbanization and rising
Slide 24: Introduction of RERA Act 2016
Introduction of Real Estate (Regulatory & Development) Act 2016 (RERA) Act, Brings in accountability, functions in a more transparent manner and improves visibility of delivery to buyers. Customer’s Benefit • Raising the transparency levels. • Likely y to restore confidence of buyers y and investors
Slide 25: Government Initiatives - Focus on Affordable Housing
Government Initiatives - Government focus on Affordable H Housing i Demand side incentives Supply side incentives Interest Subsidy Scheme Income Tax Exemption p (CLSS – Credit Linked Subsidy Scheme) - 100% tax deduction on Affordable Housing Projects - Promotion of affordable housing for weaker sect
Slide 26: Operation Highlights
Operation Highlights July 2018 – Sept 2018 25
Slide 27: Outstanding Portfolio
OUTSTANDING PORTFOLIO Composition of Outstanding Loan Portfolio (Rs. In Crore) As on Sept’2018 As on Sept’ 2017 Growth Amount % Amount % % Retail Loans - Home Loans 13,748.30 82.51 11,694.54 81.94 18 - Mortgage & NRP Loans 2,133.76 12.81 2,003.69 14.04 6 15882.06 588 06 95.32 95 3 13698.23 3698 3 95
Slide 28: Product Wise Loan Outstanding
Product Wise Loan Outstanding g Composition of Outstanding Portfolio (%) as on Product wise Sept’2018 Sept’2017 Sept’2016 Sept’2015 Sept’2014 Home Loans 82 51 82.51 81 94 81.94 81 22 81.22 84 44 84.44 86 02 86.02 Mortgage & NRP 12.81 14.04 14.63 11.91 10.70 Developer Loans 4.68 4.02 4.15 3.65 3.28 T
Slide 29: Profile of Individual Loans
Profile of Individual Loans Operations Details Sept’2018 Sept’2017 Sept’2016 Sept’2015 Sept’2014 1. Average loan per 8.01 7.65 7.24 6.75 6.21 unit (Rs. In Lac) 2. Avg. cost per dwelling unit (Rs. 13.10 12.52 12.11 11.54 10.75 In Lac) 3. Average FOIR (%) 38 33 31 34 31 4. Average LCR (%) 61 68 65 66
Slide 30: Key Features of the CLSS Scheme
Key Features of the CLSS Scheme for a First Time Owner of a House Particulars EWS LIG MIG-I MIG-II Household Income (Rs. in Lac p.a.) 3 6 12 18 Maximum loan amount eligible for 6 6 9 12 subsidy Interest Subsidy (% per annum) 6.5% 6.5% 4% 3% Loan tenure 20 20 20 20 Carpet Area (Sq mtrs.) 30 60 160 20
Slide 31: PMAY - Credit Linked Subsidy Scheme Contribution of GRUH
PMAY - Credit Linked Subsidy Scheme (EWS/LIG & MIG) Contribution of GRUH (Since Inception of the Scheme) Loans Disbursed Under PMAY - CLSS Category H1 FY 18-19 H1 FY 17-18 Growth (%) Units Amount ((Rs. in Crore)) EWS/LIG 8682 7581 15 MIG 1242 911 36 Total 9924 8492 17 Loans Sanctioned Under CLSS Q2
Slide 32: Challenges At Rural Areas
Challenges At Rural Areas • Thin density at rural locations • Rising trend of migration to urban locations • Presence of PSU Banks and Local/Regional Co-operative Banks • Delay in issue of construction permission at rural locations • Difficulty in verification of title documents at rural locations •
Slide 33: Performance Under Rural Area
Performance Under Rural Area (Rural location is a location where population is less than 50000. A state is divided into districts and each District cover 10-15 Talukas and each Taluka is a cluster of 30 -100 villages) • Cumulative Rural Disbursement of Rs. 12,771 Crore • Cumulative Housing Units Fin
Slide 34: Awards and Accolades
Awards and Accolades •Winner in Affordable Housing Finance Category at the Outlook Money Awards 2017. • Best Performing Primary Leading Institution under CLSS for EWS/LIG segment • Highest number of loans to EWS segment under CLSS for EWS/LIG. EWS/LIG • CNBC Bajar Gujarat Ratna Award 2015-16 for “Ex
Slide 35: Disclaimer
Disclaimer This presentation may contain statements about events and expectations that may be “forward looking”, including those relating to general business plans and strategy of GRUH Finance Limited (GRUH), its future outlook and growth prospects, and future developments in its business and its co
Slide 36: Thank You
Thank You {}GRUH We help you build homes