Can Fin Homes Ltd. · NSE:CANFINHOME
Can Fin Homes — Q4 FY2018 Earnings Presentation
35 slides from Can Fin Homes's earnings presentation, March 2018
Slide 1: Can Fin Homes Ltd. at a Glance
Can Fin Homes Ltd. .. at a Glance 30 years of vision, passion and progress Offering home loans since 1987….. and it is just a beginning Information to Investors 4QFY18 ended March 2018 www.canfinhomes.com 1
Slide 2: About us
About us ▪ 30 year old institution registered as a deposit taking HFC with NHB ▪ Promoted by Canara Bank in the year 1987 with the shareholding of 30% Legacy ▪ Listed in 1991. Carries a legacy of an uninterrupted dividend payment since inception ▪ Dominance in South (73% of business) as at March 201
Slide 3: Board of Directors
Board of Directors Name of the Director Designation Occupation Shri K.N.Prithviraj Chairman Former Chairman and (Independent) Managing Director, Oriental Bank of Commerce Shri Sarada Kumar Hota Managing Director General Manager (w.e.f. 19/05/2016) Canara Bank (On Deputation to Can Fin Homes) Smt P.V
Slide 4: Performance Highlights - FY18
Performance Highlights - FY18 Three landmarks annexed - Loan Book: Rs.15000 Cr +, NII: Rs.500 Cr + and PAT: Rs.300 Cr + Y-o-Y growth in Quarterly Disbursements improved consistently from 4% in Q2 & 9% in Q3 to 12% now in Q4. Quarterly growth in outstanding Loan Book (Y-o-Y) resuming back to no
Slide 5: Performance Highlights - Q4 FY18
Performance Highlights - Q4 FY18 Amount in Rs. Crore Mar’18 Dec’17 Mar’17 Mar’18 Mar’17 Growth % Sl. No. Particulars (3m) (3m) (3m) (12m) (12m) (Y-o-Y) 1 New Approvals 1454 1547 1392 5760 5451 6% 2 Disbursements 1386 1322 1234 5207 4792 9% 3 Outstanding Loan Book 15743 15058 13313 15743 13313 18.3%
Slide 6: Performance Highlights - Q4 FY18
Performance Highlights - Q4 FY18 Amount in Rs. Crore Mar’18 Dec’ 17 Mar’17 Mar’18 Mar’17 Growth % Sl. No. Particulars (3m) (3m) (3m) (12m) (12m) (Y-o-Y) 10 Profit Before Tax & Provisions 119.10 123.56 111.21 480.16 388.38 24% 11 Provision for SA & NPA 0.76 9.22 1.30 22.10 18.80 18% Prior period Adju
Slide 7: Key Quarterly Data
Key Quarterly Data Amounts in Rs. Crore Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Income Statement Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 NII 48.12 52.24 64.03 70.93 79.3 86.68 91.87 100.99 110.33 118.87 123.30 127.98 127.94 130.56 Other inc
Slide 8: Fresh Approvals
Fresh Approvals CAGR % Amounts in Rs. crores Annual Growth .. Year on Year 5,760 5,451 4,418 3,670 2,907 2,093 FY13 FY14 FY15 FY16 FY17 FY18 69 83 117 140 170 173 # of Branches/ Satellite Offices FY18 Growth in Fresh Approvals : + 6% Y-o-Y (minus Karnataka : + 16%) www.canfinhomes.com 8
Slide 9: Disbursements
Disbursements CAGR % Amounts in Rs. crores Annual Growth .. Year on Year 5,207 4,792 3,923 3,346 2,548 1,814 FY13 FY14 FY15 FY16 FY17 FY18 69 83 117 140 170 173 # of Branches/ Satellite Offices FY18 Growth in Disbursements : + 9% Y-o-Y (minus Karnataka : + 17%) www.canfinhomes.com 9
Slide 10: Loan Book Growth
Loan Book Growth CAGR % Amounts in Rs. crores Annual Growth .. Year on Year 15,743 13,313 10,643 8,231 5,844 4,016 FY13 FY14 FY15 FY16 FY17 FY18 69 83 117 140 170 173 # of Branches/ Satellite Offices FY18 Growth in Loan Book : + 18.3% Y-o-Y (minus Karnataka : + 23.4%) www.canfinhomes.com 10
Slide 11: Fresh Approvals (QoQ)
Fresh Approvals (QoQ) Amounts in Rs. crores FY18 vs FY17 : Quarterly Approvals Q4FY18 1,454 +4% Q4FY17 1,392 . Q3FY18 1,547 +14% Q3FY17 1,351 . Q2FY18 1,575 Q2FY17 +4% 1,516 . Q1FY18 1,185 -0.5% Q1FY17 1,192 Improvement in Approvals & enquiries, quarter on quarter (with aberration of Q4) www.canfinh
Slide 12: Disbursements (QoQ)
Disbursements (QoQ) Amounts in Rs. crores FY18 vs FY17 : Quarterly Disbursements Q4FY18 1,386 +12% Q4FY17 1,234 . Q3FY18 1,321 Q3FY17 +9% 1,207 . Q2FY18 1,347 Q2FY17 1,298 +4% . Q1FY18 1,153 Q1FY17 1,053 +9% Consistent rise in Disbursements, quarter on quarter www.canfinhomes.com 12
Slide 13: Loan Book Growth (QoQ)
Loan Book Growth (QoQ) Amounts in Rs. crores FY18 vs FY17 : Quarterly Loan Book Growth (Incremental) Q4FY18 685 +10% Q4FY17 625 . Q3FY18 602 -15% Q3FY17 708 . Q2FY18 648 -19% Q2FY17 797 . Q1FY18 495 -8% Q1FY17 540 Incremental Loan Book Growth : Back to Positive www.canfinhomes.com 13
Slide 14: Net Interest Income (YoY)
Net Interest Income (YoY) CAGR % Amounts in Rs. crores Annual Growth .. Year on Year 510 422 301 178 134 96 FY13 FY14 FY15 FY16 FY17 FY18 69 83 117 140 170 173 # of Branches/ Satellite Offices www.canfinhomes.com 14
Slide 15: Operating Profit (YoY)
Operating Profit (YoY) CAGR % Amounts in Rs. crores Annual Growth .. Year on Year 480 388 273 152 111 74 FY13 FY14 FY15 FY16 FY17 FY18 69 83 117 140 170 173 # of Branches/ Satellite Offices www.canfinhomes.com 15
Slide 16: Net Profit (YoY)
Net Profit (YoY) CAGR % Amounts in Rs. crores Annual Growth .. Year on Year 302 235 157 86 76 54 FY13 FY14 FY15 FY16 FY17 FY18 69 83 117 140 170 173 # of Branches/ Satellite Offices www.canfinhomes.com 16
Slide 17: Capital Adequacy
Capital Adequacy 0.25 20.69% 0.2 19.10% 19.07% 18.00% 18.40% 18.50% 17.10% 15.40% 0.15 13.80% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 0.1 NHB Requirement CAR 0.05 0 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Adequate CRAR of 19.07% vs NHB requirement 12%. T
Slide 18: Return Matrices - ROA & ROE
Return Matrices - ROA & ROE 25.00% 22.41% 21.86% ROE 20.00% 17.89% 16.74% 14.26% 13.80% 15.00% 13.51% 12.59% 11.18% 10.00% ROA 5.00% 1.88% 1.83% 1.65% 1.97% 2.09% 1.87% 1.52% 1.69% 1.23% 0.00% Mar.10 Mar.11 Mar.12 Mar.13 Mar.14 Mar.15 Mar.16 Mar.17 Mar.18 ROE ROA Leverage Ratio improved to 10.34% (v
Slide 19: Movement of NPA
Movement of NPA Amount in Rs. Crore Sl. No. Particulars Current Year Previous Year 1 Movement of NPAs (Gross) Opening balance 27.91 19.76 Additions during the year 55.69 12.95 Reductions during the year 16.11 4.80 Closing balance 67.49 27.91 2 Movement of provisions for NPAs Opening balance 27.91 19
Slide 20: Lending Basket
Lending Basket Category-wise Product-wise Distribution of Loan Book Sl . Category/Product Mar-17 June-17 Sept-17 Dec-17 Mar-18 No. O/s Amt. O/s Amt. O/s Amt. O/s Amt. O/s Amt. 1 Salaried & Professionals i) Housing Loans 9163 9450 9814 10195 10665 ii) Top-up Personal Loans 297 298 314 304 338 iii) Mo
Slide 21: Funding Basket
Funding Basket Funding Mix @ March 2017 (as %) Funding Mix @ March 2018 (as %) DEP BANKS 2% DEP 19% 2% BANKS 33% Market Borrowings Market 50% Borrowings 51% NHB 28% NHB 15% • Backed by strong AAA ratings for our borrowing/NCD & A1+ for CP programs • Cost of borrowing stands reduced at 7.65% ( vs 7.7
Slide 22: Ratings as on 31/03/18
Ratings as on 31/03/18 Sl. No. Nature of Borrowing Rating Agency ICRA Ltd. FITCH CARE 1 Deposits MAAA - Negative - - 2 Term Loans (Long) [ICRA] AAA - - 3 Term Loans (short) [ICRA] A1+ - - 4 Secured NCDs (SRNCD) [ICRA] AAA IND AAA CARE AAA 5 Unsecured NCDs [ICRA] AAA IND AAA CARE AAA (Tier II Subordi
Slide 23: Branch network - 133 branches, 20 AHLCs & 20 Satellite Offices
Branch network - 133 branches, 20 AHLCs & 20 Satellite Offices Tamilnadu - Hosur, Chennai (9 branches) , Madurai, Punjab - Chandigarh Namakkal, Trichy, Coimbatore, Salem, Erode, Vellore, Thiruchengode, Dindigul, Karur, Rajasthan - Jaipur, Mansarovar, Virudhunagar, Tirunelveli, CBE- P N Palyam, Tirup
Slide 24: Stock Price - Book Value
Stock Price - Book Value (in Rupees) 600 484 500 424 400 300 231 200 121 100 38 101 58 66 81 44 0 Mar.14 Mar.15 Mar.16 Mar.17 Mar.18 BVPS Share Price (Book Value & Price adjusted to Face Value of Rs.2/- per Equity Shares (Subdivision of Shares effective 13/10/2017) Closing price as on the last tradi
Slide 25: New Initiatives FY18
New Initiatives FY18 Can Fin Homes completes 30th Year of its service to the Nation 9 branches and 4 Satellite offices opened during the year taking total number of outlets to 173. 20 Affordable Housing Loan Centres (AHLCs) opened (conversion of SOs). Upcountry units dedicated to cater to GRHS
Slide 26: Awards and Additional Whole Time Director on Board
Awards .. FE Best Bank Survey 2017 Awarded Runner-Up in NBFC category Additional Whole Time Director on Board .. Mr Shreekant M Bhandiwad, Dy General Manager, Canara Bank has been inducted to Board as Deputy Managing Director to strengthen the management team & operations. Mr Shreekant M Bhandiw
Slide 27: Future Outlook
Future Outlook Vision 2022 : Loan book size of Rs.40,000 Cr by the end of FY2022 (CAGR of 26%) Business Budget for 2018-19: Loan book size of Rs.19,500 Cr vs Rs.15,743 Cr at Mar’18 (+24%) Branch Expansion Plan for 2018-19: 20 New Branches/AHLCs to be opened in growth centres Total Network (B
Slide 28: Disclaimer
Disclaimer The forward looking statements and projections, if any, contained in this presentation are predictions and involve known and unknown risks, uncertainties and other factors including the future changes or developments, the competitive environment, ability to implement the strategies and in
Slide 29: Appendix
Appendix Year-wise statistics on: a) Business b) Income & Expenditure c) Financial & Ratios www.canfinhomes.com 29
Slide 30: Business Profile
Business Profile Sl . FY FY FY FY FY No. Parameters 13-14 14-15 15-16 16-17 17-18 1 Loan Approvals(Rs. in cr) 2907 3670 4418 5451 5760 2 Loan Disbursements 2548 3346 3923 4792 5207 (Rs. in cr) 3 Total Loan Outstanding 5844 8231 10643 13313 15743 (Rs. in cr) 4 Out of 3 above, (i) Housing Loans (Rs. i
Slide 31: Business Profile
Business Profile Sl . FY FY FY FY FY Parameters No. 13-14 14-15 15-16 16-17 17-18 7 No. of Branches/Offices 83 117 140 170 173 (i) Branches 83 107 110 134 153 (ii) Satellite Offices 0 10 30 36 20 8 No. of employees 387 491 553 578 612 (incl. Junior Officers on Contract Excl. Sub-Staff) Interest Coll
Slide 32: Earnings Profile
Earnings Profile Sl . FY FY FY FY FY Parameters No. 13-14 14-15 15-16 16-17 17-18 13 Interest Paid (Rs. in cr) 423 610 743 884 981 14 Net Interest Income (NII) (Rs. in cr) 134 178 301 422 510 15 Staff Cost (Rs. in cr) 18 25 33 39 44 16 Other Expenses (Rs. in cr) i. Establishment (Rent, Repairs & mai
Slide 33: Earnings Profile
Earnings Profile Sl . FY FY FY FY FY Parameters No. 13-14 14-15 15-16 16-17 17-18 Provisions & Taxes (Rs. in cr) i. Provisions 4.44 14.25 19.41 18.80 22.10 22 ii. Income Tax 30.93 43.23 80.00 115.13 128.69 iii. Deferred Tax Liability/(Asset) 0.01 7.98 16.76 19.78 27.60 iv. Prior period adjustment 0.
Slide 34: Financial Ratios
Financial Ratios Sl . FY FY FY FY FY No. Parameters 13-14 14-15 15-16 16-17 17-18 30 Return on Equity (ROE) % 16.74 11.18 17.89 21.86 22.41 31 Return on Average Asset (ROA) % 1.53 1.23 1.69 1.97 2.09 32 Risk Weighted Assets (Rs. in cr) 3421.11 4945.71 4979.46 6521.71 7756.23 33 Capital Adequacy Rati
Slide 35: Thank You
Thank You www.canfinhomes.com 35