Dewan Housing Finance Corporation Limited
Dewan Housing Finance — Q1 FY2021 Earnings Presentation
21 slides from Dewan Housing Finance's earnings presentation, Aug 27, 2020
Slide 1: Stock exchange intimation letter
DHFL/CSD/2020-21/1860 27 August 2020 The Manager The Manager Listing Department Listing Department The BSE Limited. National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, ‘Exchange Plaza’, C-1, Block G, Dalal Street, Fort, Bandra- Kurla Complex, Mumbai – 400 001. Bandra (East), Mumbai
Slide 2: Update on Q1FY21 Results
Update on Q1FY21 Results August 2020
Slide 3: Section 1: Q1FY21 Earnings Update
Section 1 Q1FY21 Earnings Update Slide 2
Slide 4: Financial Performance – Q1 FY21
Financial Performance – Q1 FY21 (values in Rs crore) Q1FY21 65,408 -5,468^ 2,329 -27% N/A -3% Q1FY20 90,144 7,880 2,400 On B/S Loan Net Worth Total Income Assets * Q1 92 2,159^^ 70 FY21 -37% 26.6X N/A Q1 FY20 146 78 -206 Operating Pre Provisioning PAT Expenses ** Profits *** * Loans Assets are net o
Slide 5: Profit and Loss Statement (Standalone)
Profit and Loss Statement (Standalone) (values in Rs crore) P&L after adding back interest Reported P&L expenses not accrued under CIRP Q1FY21 Q4FY20 Q1FY20 Q1FY21 Q4FY20 Q1FY20 Gross Income 2,329 2,392 2,400 2,329 2,392 2,400 Interest Expenses 58 133 2,159 1,881 1,967 2,159 Operating Expenses 92 10
Slide 6: Key Financial Ratios
Key Financial Ratios (values in Rs crore) Q1FY21 Q4FY20 Q1FY20 FY20 FY19 Net Worth - Closing (5,468) (5,538) 7,880 (5,538) 8,102 Loan Assets – Closing * 65,408 66,203 90,144 66,203 97,978 Total Assets - Closing 85,698 85,838 1,06,475 85,838 106,475 RATIOS BASED ON REPORTED FINANCIALS Net Interest Ma
Slide 7: Operating Expenses Trend
Operating Expenses Trend (values in Rs crore) 180% Opex/Net Income 1.80% 1.59% 156.1% 160% 1.60% Opex/Average Loan Book 140% 1.40% 120% 1.20% 0.95% 0.94% 100% 1.00% 0.77% 0.76% 80% 64.0% 0.68% 0.80% 0.62% 0.57% 0.56% 60% 0.60% 60.6% 28.0% 40% 24.9% 23.9% 22.2% 24.5% 20.5% 0.40% 20% 0.20% 0% 0.00% Q1
Slide 8: Fair Valuation of Wholesale Loans
Fair Valuation of Wholesale Loans Fair valuation methodology Wholesale loans of Rs 50,805 cr (Gross) held for sale and fair valued Basis for fair valuation changed from DCF based on contractual cash flow to DCF based on cash flow assessed by external registered valuer (values in Rs crore) 50,805 49,
Slide 9: Section 2: Key Developments since Nov '19
Section 2 Key Developments since Nov ’19 Slide 8
Slide 10: Appointment of New Management Team
Appointment of New Management Team RBI superseded the Board of Directors of DHFL and appointed Mr. R. Subramaniakumar as the Administrator of the Company wef. 20 Nov ’19 Administrator took charge of affairs; RBI appointed 3 member Advisory Committee to assist the Administrator Hon’ble NCLT Mumbai be
Slide 11: Strength of the Retail Loan Franchise
Strength of the Retail Loan Franchise Strong presence in affordable Pan India network of more than housing space (one of largest 250 branches with deep financiers availing PMAY CLSS penetration in Tier 2 / 3 / 4 towns scheme) Existing credit and technology Granular retail loan book with platform wit
Slide 12: Strategy to operate as a 'Going Concern'
Strategy to operate as a ‘Going Concern’ Pursue various initiatives to enhance enterprise value, increase transparency, improve corporate governance, control costs and increase interaction with stakeholders 1 Strengthen financial 5 policies/processes and Ensure strict compliance internal financial c
Slide 13: Key Developments: Improvement in internal policies and processes
Key Developments: Improvement in internal policies and processes Retail lending policies reviewed so as to ensure booking of quality business and disbursements restarted based on revised policies. Financial matrix reviewed and modified. Steps taken to reduce unproductive expenses, vendor rates reneg
Slide 14: Key Developments: Improvement in corporate governance and stakeholder involvement
Key Developments: Improvement in corporate governance and stakeholder involvement Increased transparency and improved governance by forming internal committees (eg ALCo, ORMC, CRMC, IT Steering Committee) for discussions/decision making OTS Policy, Refund Policy, etc reviewed to ensure transparent d
Slide 15: Key Developments: Engagement with external agencies to turnaround organisation
Key Developments: Engagement with external agencies to turnaround organisation EY appointed as IBC process advisor. Deep involvement of EY across functions to increase transparency and improve processes IT audit conducted by KPMG and gaps identified currently being resolved/implemented by the Compan
Slide 16: Thank You
Thank You Slide 15
Slide 17: Annexure 1: Quarter Financial Results and Ratio Calculations
Annexure 1 9 Quarter Financial Results (Q1FY19-Q1FY21) and Ratio Calculations Slide 16
Slide 18: 9 Qtrs P&L Statement (Standalone)
9 Qtrs P&L Statement (Standalone) (values in Rs crore) Q1FY21 Q4FY20 Q3FY20 Q2FY20 Q1FY20 Q4FY19 Q3FY19 Q2FY19 Q1FY19 FY20 FY19 Interest Income 2,315.9 2,373.2 2,412.4 2,092.0 2,378.6 2,999.4 3,257.7 3,286.3 2,970.3 9,256.2 12,513.7 Interest Expenses 57.5 133.1 1,423.3 2,009.8 2,159.0 2,349.3 2,410.
Slide 19: 9 Qtrs Ratio Analysis
9 Qtrs Ratio Analysis Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY20 FY19 FY21 FY20 FY20 FY20 FY20 FY19 FY19 FY19 FY19 KEY RATIOS REPORTED NIM % (annualized) 13.73% 12.31% 4.93% 0.38% 0.93% 2.62% 3.19% 3.18% 3.20% 4.30% 3.27% Opex/ Net Income Ratio * ^ 4.04% 4.61% 13.41% 156.07% 60.59% 64.03% 22.17% 23.91% 24.92%
Slide 20: 9 Qtrs P&L Statement – with Normalised Interest Expenses
9 Qtrs P&L Statement – with Normalised Interest Expenses ** (values in Rs crore) Q1FY21 Q4FY20 Q3FY20 Q2FY20 Q1FY20 Q4FY19 Q3FY19 Q2FY19 Q1FY19 FY20 FY19 Interest Income 2,315.9 2,373.2 2,412.4 2,092.0 2,378.6 2,999.4 3,257.7 3,286.3 2,970.3 9,256.2 12,513.7 Interest Expenses 1,881.5 1,966.8 1,950.9
Slide 21: 9 Qtrs Ratio Analysis – with Normalised Interest Expenses
9 Qtrs Ratio Analysis – with Normalised Interest Expenses ** Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY20 FY19 FY21 FY20 FY20 FY20 FY20 FY19 FY19 FY19 FY19 KEY RATIOS REPORTED NIM % (annualized) 2.64% 2.23% 2.30% 0.38% 0.93% 2.62% 3.19% 3.18% 3.20% 1.42% 3.27% Opex/ Net Income Ratio * ^ 20.51% 24.48% 27.98% 156.
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