Repco Home Finance Ltd. · NSE:REPCOHOME

Repco Home Finance — Investor Presentation (May 2016)

33 slides from Repco Home Finance's investor presentation, May 2016

  1. Slide 1: Corporate Presentation May 2016

    Repco Home Finance Limited Corporate Presentation May 2016 www.repcohome.com Corporate Presentation  May 2016

  2. Slide 2: Agenda

    Agenda Repco Home Finance Limited  Company Overview ► Niche housing finance company ► Robust business model ► Strong credit process ► Profitable growth ► Well known brand with differentiated focus ► Expanding footprint  Industry Opportunity – opportunity with enabling factors  Q4FY16 and FY16 Per

  3. Slide 3: Company Overview

    Repco Home Finance Limited Company Overview Corporate Presentation  May 2016

  4. Slide 4: Niche housing finance company

    Niche housing finance company Repco Home Finance Limited ♦ 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- penetrated markets professionals & segments ► Loans to salari

  5. Slide 5: Robust business model

    Robust business model Repco Home Finance Limited • Reach out to customer s through direct & localized advertising, loan camps & word of mouth referrals Direct marketing • Branch offices serve as a single point of contact for customers and customer • Loan origination system with real time transmissio

  6. Slide 6: Strong credit process – Appraisal, Monitoring, Collection

    Strong credit process – Appraisal, Monitoring, Collection Repco Home Finance Limited Through branch Branch Level Process Head Office Level Process Loan sanction order to borrower  Personal interview  Scrutiny by credit officer Thorough review of documents 2 Tier Credit  Approval by sanctioning Ve

  7. Slide 7: Profitable growth with deeper market presence

    Profitable growth with deeper market presence Repco Home Finance Limited Customer ♦ Focus on underserved non-salaried segment ♦ Increase penetration through better customer engagement in salaried segment Profitability Coverage ♦ Access low cost and ♦ Deeper penetration in diversified sources of fund

  8. Slide 8: Established as a well known brand

    Established as a well known brand Repco Home Finance Limited Loan book grew from Rs 1 billion in FY03 to over Rs 75 billion in FY16 2000 • Incorporated as Repco Home Finance Limited 2002 • Received certificate of registration from NHB 2003 • Loan book crossed Rs. 1 bn • Investment by Carlyle 2007 •

  9. Slide 9: Focus on underpenetrated markets and segments

    Focus on underpenetrated markets and segments Repco Home Finance Limited  Not entirely reliant on highly competitive salaried segment. Focused on self employed segment which is generally underserved by larger HFCs & banks – Direct customer contact, tailored approach and personal evaluation processe

  10. Slide 10: Expanding footprint

    Expanding footprint Repco Home Finance Limited  Presence in 11 states and 1 Union Territory with 115 branches and 35 satellite centres  Presence beyond South: branches in West Bengal, Orissa, Maharashtra, Gujarat, Madhya Pradesh and Jharkhand  Focus in FY16 was to increase penetration in existing

  11. Slide 11: Diversifying the loan book

    Diversifying the loan book Repco Home Finance Limited Andhra Others, Pradesh, Telangana, 2.3% 7.7% Exposure 3.4% Key States FY15 FY16 Gujarat, Andhra Pradesh & 2.0% Telangana 12.2% 11.2% Gujarat 1.5% 2.0% Karnataka, 12.3% Karnataka 12.2% 12.3% Kerala 3.7% 3.8% Kerala, Maharastra 5.3% 5.7% Tamil 3.8%

  12. Slide 12: Industry Opportunity

    Repco Home Finance Limited Industry Opportunity Corporate Presentation  May 2016

  13. Slide 13: Multiple growth drivers for housing finance

    Multiple growth drivers for housing finance Repco Home Finance Limited Increasing urbanization Shortage of urban housing (mn units) % of urban population Katcha Homeless 40 34 Total urban units, 1.0 conditions, 35 30 Obsolesce 0.5 housing 28 30 26 nt houses, shortage of 23 25 2.3 18.8 mn 17 18 18 20

  14. Slide 14: Sizeable opportunity in the under served segments

    Sizeable opportunity in the under served segments Repco Home Finance Limited High % of self employed in total workforce Metro & Urban areas continue to dominate banks home loan portfolio Salaried, 100% 15.5% 8.8% 7.1% 7.5% 6.7% 12.4% 14.1% 16.0% 15.9% 80% 24.4% 26.7% 26.9% 60% 27.8% Self employe Cas

  15. Slide 15: Q4FY16 and FY16 Performance

    Repco Home Finance Limited Q4FY16 and FY16 Performance Corporate Presentation  May 2016

  16. Slide 16: Business Summary

    Business Summary Repco Home Finance Limited • Loans outstanding (Mar 31, 2016) Rs. 76,912 mn • Net worth (Mar 31, 2016) Rs. 9,512 mn* • Average loan per unit Rs. 1.3 mn • Number of live accounts 67,242 • Current Employee Strength 619 • Capital Adequacy Ratio 20.8% • Gross NPA (%) (Mar 31, 2016) 1.3%

  17. Slide 17: Growth story continued in FY16

    Growth story continued in FY16 Repco Home Finance Limited Figures in Rs Million Income from Operations Net Interest Income Profit after Tax FY16 8,801 3,039 1,501 27% 22% 28% FY15 6,922 2,373 1,231 Loan Book Sanctions Disbursements FY16 76,912 30,828 28,512 28% 29% 31% FY15 60,129 23,989 21,812 Corp

  18. Slide 18: Driven by strong Q4 FY16

    Driven by strong Q4 FY16 Repco Home Finance Limited Figures in Rs Million Income from Operations Net Interest Income Profit after Tax Q4 FY16 2,400 856 422 25% 29% 21% Q4 FY15 1,913 662 348 Total Income Sanctions Disbursements Q4 FY16 9,342 8,975 2,403 25% 12% 20% Q4 FY15 1,915 8,346 7,505 Corporate

  19. Slide 19: Steady growth in loan book with healthy customer mix

    Steady growth in loan book with healthy customer mix Repco Home Finance Limited Figures in Rs million Sanctions and disbursements Loan Book 30,828 30,000 76,912 23,989 28,512 25,000 70,000 21,812 60,129 20,000 18,225 60,000 17,153 50,000 46,619 15,000 40,000 10,000 30,000 5,000 FY14 FY15 FY16 20,000

  20. Slide 20: Driving robust income and earnings growth

    Driving robust income and earnings growth Repco Home Finance Limited Figures in Rs million Income from operations Net interest income 9,000 8,801 3,500 3,039 8,000 6,922 3,000 7,000 2,373 5,342 2,500 6,000 1,908 5,000 2,000 4,000 1,500 3,000 1,000 2,000 1,000 500 - - FY14 FY15 FY16 FY14 FY15 FY16 Ne

  21. Slide 21: And steady profitability ratios

    And steady profitability ratios Repco Home Finance Limited Net interest margin Spread 4.7% 3.5% 3.2% 5.0% 4.5% 4.4% 2.9% 3.0% 4.5% 3.0% 4.0% 2.5% 3.5% 3.0% 2.0% 2.5% 1.5% 2.0% 1.5% 1.0% 1.0% 0.5% 0.5% 0.0% 0.0% FY14 FY15 FY16 FY14 FY15 FY16 Return on average net worth Return on assets 20.0% 17.7% 3.

  22. Slide 22: Asset quality & provisioning

    Asset quality & provisioning Repco Home Finance Limited Figures in Rs Million Gross NPA Net NPA 1.47% 1.32% 500 1.00% 1.31% 1.40% 1,200 1.20% 400 0.72% 368 0.80% 1,000 1.00% 800 300 0.50% 0.60% 0.80% 332 600 0.48% 1,009 0.60% 200 0.40% 298 400 791 0.40% 686 100 0.20% 200 0.20% - 0.00% - 0.00% FY14 F

  23. Slide 23: Stable asset quality

    Stable asset quality Repco Home Finance Limited Movement in NPAs 3.5% 3.0% 2.5% 2.2% 2.2% 2.2% 2.3% 2.0% 2.0% 2.0% 1.8% 1.5% 1.6% 1.6% 1.5% 1.5% 1.3% 1.3% 1.5% 1.5% 1.0% 1.3% 1.3% 1.4% 1.2% 0.5% 1.0% 0.9% 0.9% 0.7% 0.8% 0.5% 0.5% 0.0% Gross NPA Net NPA • Stable asset quality despite material changes

  24. Slide 24: Mix/Product-wise asset quality

    Mix/Product-wise asset quality Repco Home Finance Limited 4.0% 3.5% 3.0% 2.5% 2.3% 2.0% 2.0% 1.7% 1.8% 1.5% 1.3% 1.5% 1.3% 1.0% 1.2% 1.1% 0.8% 0.7% 0.5% Mar-14 Mar-15 Dec'15 Mar'16 Housing Loan Home Equity Salaried Non-Salaried Overall Corporate Presentation  May 2016 24

  25. Slide 25: Diversified borrowing profile

    Diversified borrowing profile Repco Home Finance Limited 100% 1% 2% 6% Source (Rs mn) Mar'15 Mar'16 8% 90% 8% National housing Bank 10,948 9,109 80% 70% Repco Bank 4,014 4,963 60% Commercial Banks 34,482 47,307 68% 50% 72% NCDs 1,000 4,000 40% 30% CPs 600 0 20% Total 51,044 65,379 10% 21% 14% 0% Mar

  26. Slide 26: Annexure

    Repco Home Finance Limited Annexure Corporate Presentation  May 2016

  27. Slide 27: Shareholding pattern

    Shareholding pattern Repco Home Finance Limited Outstanding shares – 62.54 mn % Major Non-Promoter Shareholders shareholding Franklin Templeton Indiaprima Fund 4.3% Bodies Birla Sun Life Balanced 95 Fund 4.0% Corporates Individuals, SBI Magnum Multiplier Fund 3.9% , 2.80% 10.85% Parvest Equity India

  28. Slide 28: Profit and loss statement

    Profit and loss statement Repco Home Finance Limited QOQ YoY (Rs. million) Q4 FY16 Q4 FY15 YoY (%) Q3 FY16 (%) FY16 FY15 (%) Income: Revenue from operations 2,400 1,913 25% 2,253 6% 8807 6922 27% Other Income 3 1 85% 1 198% 12 8 41% Total Income 2,403 1,915 25% 2,255 6% 8,818 6,930 27% Expenses: Int

  29. Slide 29: Balance sheet

    Balance sheet Repco Home Finance Limited (Rs. million) As on Mar 31, 2016 As on Mar 31, 2015 EQUITY AND LIABILITIES: Shareholder's Funds 9,548 8,121 Share Capital 625 624 Reserves and Surplus 8,923 7,497 Non-Current Liabilities 51,676 39,902 Long-term borrowings 50,252 38,797 Deferred Tax Liability

  30. Slide 30: Key metrics

    Key metrics Repco Home Finance Limited Key Ratios March'14 March‘15 March‘16 Yield 12.6% 12.5% 12.4% Cost of Debt 9.3% 9.6% 9.4% Spread 3.2% 2.9% 3.0% NIM 4.7% 4.5% 4.4% Cost to Income 18.4% 21.0% 19.3% Return on Assets 2.7% 2.3% 2.2% Return on Equity 16.4% 16.1% 17.7% Gross NPA 1.5% 1.3% 1.3% Net N

  31. Slide 31: Key metrics…2

    Key metrics…2 Repco Home Finance Limited Key metrics (Annualized ) Q4FY15 Q3FY16 Q4FY16 Yield 12.7% 12.5% 12.2% Cost of Debt 9.6% 9.4% 9.2% Spread 3.1% 3.1% 3.0% NIM 4.6% 4.5% 4.6% ROAA 2.4% 2.2% 2.3% ROANW 17.4% 17.1% 18.7% Corporate Presentation  May 2016 31

  32. Slide 32: Historical performance at a glance

    Historical performance at a glance Repco Home Finance Limited Particulars Units FY12 FY13 FY14 FY15 FY16 CAGR Outstanding Loan Book Rs mn 28,041 35,448 46,619 60,129 76,912 29% Sanctions Rs mn 11,116 12,848 18,225 23,989 30,828 29% Disbursements Rs mn 10,423 11,674 17,153 21,812 28,512 29% Income fr

  33. Slide 33: For any Investor Relations queries, please contact

    Repco Home Finance Limited For any Investor Relations queries, please contact: V. Raghu, Executive Director/ Bala, Investor Relations Repco Home Finance Limited Phone: +91 44 42106650 Email: [email protected] [email protected] Safe Harbor: This presentation may have certain statements that may be

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