Can Fin Homes Ltd. · NSE:CANFINHOME
Can Fin Homes — Q2 FY2018 Earnings Presentation
33 slides from Can Fin Homes's earnings presentation, September 2017
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 2QFY18 ended September 2017 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 (61% of business) as at September
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.
Slide 4: Performance Highlights - HY1FY18
Performance Highlights - HY1FY18 Fresh Disbursements were up by 6% Y-o-Y & 17% vs Q1. Loan Book grew by 21% Y-o-Y and by 5% over Q1. OP & PAT for the HY1 rose by 34% & 40% Y-o-Y respectively, backed by NII growth of 30% Cost to Income Ratio improved to 14.61% for the HY1 FY18 (17.64% in HY1
Slide 5: Performance Highlights - Q2 FY18
Performance Highlights - Q2 FY18 Amount in Rs. Crore Sept’17 Jun’17 Sept’16 Sept’17 Sept’16 Mar’17 Sl. No. Particulars (3m) (3m) (3m) (6m) (6m) (12m) 1 New Approvals 1574 1186 1517 2760 2708 5451 2 Disbursements 1346 1153 1299 2499 2351 4792 3 Outstanding Loan Book 14456 13808 11980 14456 11980 1331
Slide 6: Performance Highlights - Q2 FY18
Performance Highlights - Q2 FY18 Amount in Rs. Crore Sept’17 Jun’17 Sept’16 Sept’17 Sept’16 Mar’17 Sl. No. Particulars (3m) (3m) (3m) (6m) (6m) (12m) 10 Profit Before Tax & Provisions 122.16 115.33 93.28 237.49 177.31 388.40 11 Provision for SA & NPA 7.96 4.15 6.00 12.11 11.50 18.80 Prior period Adj
Slide 7: Key Quarterly Data
Key Quarterly Data Amounts in Rs. Crore Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Income Statement Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 NII 40.66 48.12 52.24 64.03 70.93 79.3 86.68 91.87 100.99 110.33 118.87 123.30 127.98 Other income 8.74 7.37 7.22
Slide 8: Fresh Approvals
Fresh Approvals Rs. crores CAGR % Annual Growth .. Year on Year 5,451 HY1 Growth .. Year on Year 4,418 3,670 2,907 2708 2760 1973 1,517 1,574 1,099 874 1,191 1,186 FY14 FY15 FY16 FY17 . HY1FY16 HY1FY17 HY1FY18 83 117 140 170 # of Branches/ Satellite Offices www.canfinhomes.com 8
Slide 9: Disbursement Profile
Disbursement Profile Rs. crores CAGR % Annual Growth .. Year on Year 4,792 HY1 Growth .. Year on Year 3,922 3,346 2,548 2499 2351 1756 1,299 1,346 949 807 1,052 1,153 FY14 FY15 FY16 FY17 . HY1FY16 HY1FY17 HY1FY18 83 117 140 170 # of Branches/ Satellite Offices www.canfinhomes.com 9
Slide 10: Loan Book Growth
Loan Book Growth Rs. crores CAGR % 16000 14456 14000 13,313 21 % 11,980 12000 10,643 10000 9,303 8,231 8000 7,037 5,844 6000 4000 2000 0 Mar'14 Sept'14 Mar'15 Sept'15 Mar'16 Sept'16 Mar'17 Sept'17 83 117 140 170 175 177 # of Branches/ Satellite Offices www.canfinhomes.com 10
Slide 11: New Approvals - Month on Month
New Approvals - Month on Month Rs. crores 1000 900 800 700 679 549 532 528 600 499 453 514 519 489 498 500 467 443 418 418 400 376 308 323 300 203 200 100 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY17 FY18 Linear (FY17) Linear (FY18) www.canfinhomes.com 11
Slide 12: Disbursements - Month on Month
Disbursements - Month on Month Rs. crores 700 600 561 474 459 465 500 423 464 459 422 405 430 387 400 373 305 343 361 344 328 300 287 200 100 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY17 FY18 Linear (FY17) Linear (FY18) www.canfinhomes.com 12
Slide 13: Growth vs Q1
Growth vs Q1 Rs. crores 1800 14600 1,575 14,456 1600 14400 1,347 1400 14200 648 1,185 1,153 1200 14000 13,808 13800 1000 13,808 13600 800 495 13,313 13400 600 13200 400 13000 200 13,313 12800 0 1QFY18 2QFY18 . 1QFY18 2QFY18 12600 Mar.17 Jun.17 Sep.17 Fresh Approvals Disbursements Outstanding Loan Bo
Slide 14: Asset Quality - Year on Year
Asset Quality - Year on Year Gross & Net NPA Movement since FY 10 (in %) 1.2 1.07 1.06 1.1 1 0.9 0.8 0.71 0.7 0.6 0.5 0.39 0.4 0.3 0.21 0.21 0.17 0.19 0.2 0.1 0 0 0 0 0 0 0 0 0 Mar.10 Mar.11 Mar.12 Mar.13 Mar.14 Mar.15 Mar.16 Mar.17 -0.1 -0.2 Gross NPA Net NPA Nil Net NPA for successive 8th Year www
Slide 15: Asset Quality - Quarter on Quarter
Asset Quality - Quarter on Quarter Gross & Net NPA Movement - since Mar’14 (in %) 0.5 0.40 0.4 0.38 0.29 0.29 0.3 0.28 0.27 0.26 0.25 0.25 0.24 0.24 0.21 0.21 0.19 0.2 0.18 0.17 0.17 0.11 0.1 0.09 0.09 0.1 0.08 0.04 0.04 0.03 0.01 0 0 0 0 0 Mar.14 Jun.14 Sep.14 Dec.14 Mar.15 Jun.15 Sep.15 Dec.15 Mar
Slide 16: Net Profit Growth
Net Profit Growth Rs. crores CAGR % Annual Growth .. Year on Year 235 HY1 Growth .. Year on Year 157 146 86 105 76 75 67 55 35 71 50 32 FY14 FY15 FY16 FY17 . HY1FY16 HY1FY17 HY1FY18 83 117 140 170 # of Branches/ Satellite Offices www.canfinhomes.com 16
Slide 17: Capital Adequacy
Capital Adequacy 25.00% 20.69% 20.00% 19.14% 18.79% 18.00% 18.39% 18.50% 17.10% 15.40% 15.00% 13.84% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 10.00% NHB Requirement 5.00% CAR 0.00% Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 Mar'17 Sept '17 Adequate CRAR of 18.79% vs NHB r
Slide 18: Return Matrices - ROA & ROE
Return Matrices - ROA & ROE 30.00% ROE 24.55% 25.00% 21.86% 20.00% 17.89% 16.74% 14.26% 13.80% 15.00% 13.51% 12.59% 11.18% 10.00% ROA 5.00% 1.65% 2.12% 1.87% 1.88% 1.83% 1.52% 1.69% 1.97% 1.23% 0.00% Mar.10 Mar.11 Mar.12 Mar.13 Mar.14 Mar.15 Mar.16 Mar.17 Sept.17 ROE ROA *With Rights Issue (Rs.276 C
Slide 19: Lending Basket
Lending Basket Category-wise Product-wise Distribution of Loan Book Sl . Category/Product Mar-14 Mar-15 Mar-16 Mar-17 June-17 Sept-17 No. O/s O/s O/s O/s O/s O/s Amt. Amt. Amt. Amt. Amt. Amt. 1 Salaried & Professionals i) Housing Loans 4676 6339 7768 9163 9450 9814 ii) Top-up Personal Loans 102 211
Slide 20: Funding Basket
Funding Basket Funding Mix in Sept 2016 ( as%) Funding Mix in Sept 2017 ( as%) Sept 2016 Sept 2017 DEP 2% DEP BANKS BANKS 2% 18% 20% Market Market Borrowings Borrowings 48% 59% NHB NHB 19% 32% • Backed by strong AAA ratings for our borrowing/NCD & A1+ for CP programs • Cost of borrowing stands reduc
Slide 21: Ratings as on 30/09/17
Ratings as on 30/09/17 Sl. No. Nature of Borrowing Rating Agency ICRA Ltd. FITCH CARE 1 Deposits MAAA - - 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 Subordinated Bonds
Slide 22: Branch network - 132 branches, 12 AHLCs & 33 Satellite Offices
Branch network - 132 branches, 12 AHLCs & 33 Satellite Offices Punjab - Chandigarh Tamilnadu - Hosur, Chennai (9 branches) , Madurai, Namakkal, Trichy, Coimbatore, Salem, Erode, Vellore, Thiruchengode, Dindigul, Karur, Rajasthan - Jaipur, , Mansarovar. Virudhunagar, Tirunelveli, CBE- P N Palyam, Tir
Slide 23: Stock Price - Book Value
Stock Price - Book Value (in Rupees) 3000 2,650 2500 2,121 2000 1500 1,154 1000 607 500 136 191 80 107 112 290 330 404 447 134 152 170 221 0 191 Mar.10 Mar.11 Mar.12 Mar.13 Mar.14 Mar.15 Mar.16 Mar.17 Sept.17 BVPS Share Price Face Value - Rs.10/- per Equity Share Closing price as on the last trading
Slide 24: New Initiatives 2018
New Initiatives 2018 Can Fin Homes enters 30th Year of its service to the Nation 2 Branches opened during the Quarter taking total no of outlets to 177 Total 8 branches and 4 Satellite offices opened during the current financial year 30 CanFin Affordable Housing Loan Centres (AHLCs) planned fo
Slide 25: Future Outlook
Future Outlook Business Budget for 2017-18: Loan book size of Rs.17,000 Cr (from Rs.13,313 Cr at Mar’17) Branch Expansion Plan for 2017-18: 11 New Branches & 10 Satellite Offices 30 Affordable Housing Loan Centres - ‘AHLC’ (upgradation of Satellite Offices) 8 Branches, 4 Satellite Offices
Slide 26: 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 27: Appendix
Appendix Year-wise statistics on: a) Business b) Income & Expenditure c) Financial & Ratios www.canfinhomes.com 27
Slide 28: Business Profile
Business Profile Sl . FY FY FY FY HY1 HY1 No. Parameters 13-14 14-15 15-16 16-17 FY17 FY18 1 Loan Approvals(Rs. in cr) 2907 3670 4418 5451 2708 2760 2 Loan Disbursements 2548 3346 3923 4792 2351 2499 (Rs. in cr) 3 Total Loan Outstanding 5844 8231 10643 13313 11980 14456 (Rs. in cr) 4 Out of 3 above,
Slide 29: Business Profile
Business Profile Sl . FY FY FY FY HY1 HY1 Parameters No. 13-14 14-15 15-16 16-17 FY17 FY18 7 No. of Branches/Offices 83 117 140 170 170 177 (i) Branches 83 107 110 134 120 144 (ii) Satellite Offices 0 10 30 36 50 33 8 No. of employees 387 491 553 578 633 590 (incl. Junior Officers on Contract Excl.
Slide 30: Earnings Profile
Earnings Profile Sl . FY FY FY FY HY1 HY1 Parameters No. 13-14 14-15 15-16 16-17 FY17 FY18 13 Interest Paid (Rs. in cr) 423 610 743 884 426.71 474.55 14 Net Interest Income (NII) (Rs. in cr) 134 178 301 422 192.86 251.28 15 Staff Cost (Rs. in cr) 18 25 33 39 19.33 20.52 16 Other Expenses (Rs. in cr)
Slide 31: Earnings Profile
Earnings Profile Sl . FY FY FY FY HY1 HY1 Parameters No. 13-14 14-15 15-16 16-17 FY17 FY18 Provisions & Taxes (Rs. in cr) i. Provisions 4.44 14.25 19.41 18.80 11.50 12.11 22 ii. Income Tax 30.93 43.23 80.00 115.13 51.85 65.39 iii. Deferred Tax Liability/(Asset) 0.01 7.98 16.76 19.78 9.17 13.78 iv. P
Slide 32: Financial Ratios
Financial Ratios Sl . FY FY FY FY HY1 No. Parameters 13-14 14-15 15-16 16-17 FY18 30 Return on Equity (ROE) % 16.74 11.18 17.89 21.86 24.55 31 Return on Average Asset (ROA) % 1.53 1.23 1.69 1.97 2.12 32 Risk Weighted Assets (Rs. in cr) 3421.11 4945.71 4979.46 6521.71 7216.06 33 Capital Adequacy Rati
Slide 33: Thank You
Thank You www.canfinhomes.com 33