Repco Home Finance Ltd. · NSE:REPCOHOME
Repco Home Finance — Q1 FY2014 Earnings Presentation
20 slides from Repco Home Finance's earnings presentation, July 2013
Slide 1: Earnings Presentation Q1FY14
Earnings Presentation Q1FY14 www.repcohome.com
Slide 2: Agenda
Agenda Q1FY’14 Performance ► Business summary…………………………………………….……..04 ► Financial performance for Q1’FY14 ………………………..05-10 ► Management’s comment…………..……………………..….….11 Business Overview ► Company overview………………………………………………..13 ► Geographic presence………………………………………….…14 ► Differentiated business m
Slide 3: Q1 FY’14 Performance
Q1 FY’14 Performance
Slide 4: Business summary
Business summary Loans outstanding (June 30, 2013) Rs 37,467 million Cumulative disbursements (June 30, 2013) ~Rs 52,000 million Average loan per unit Rs 1 million Total number of employees 385 Capital adequacy ratio 24.83% Networth (June 30, 2013) Rs 6,422 million Cost to Income ratio
Slide 5: Continues strong loan book growth in Q1FY14
Continues strong loan book growth in Q1FY14 Figures in Rs million Sanctions and disbursements Loan Book 4,000 3,575 3,338 40,000.0 37,467.1 3,500 35,000.0 3,000 28,970.0 30,000.0 2,500 1,889 1,852 25,000.0 2,000 20,000.0 1,500 15,000.0 1,000 10,000.0 500 5,000.0 - Q1FY13 Q1FY14 - Sanctions Disbursem
Slide 6: Driving income and profit growth
Driving income and profit growth Figures in Rs million Income from operations Net interest income 1,400 450 424 1,200 1,143 400 350 1,000 874 300 268 800 250 600 200 400 150 100 200 50 - - Q1FY13 Q1FY14 Q1FY13 Q1FY14 Net profit Cost to income ratio 250 20.00% 223 18.00% 16.28% 16.38% 200 16.00% 14.0
Slide 7: Steady expansion in margins and returns
Steady expansion in margins and returns Spread Net interest margins 3.5% 3.2% 5.0% 4.7% 3.0% 4.5% 2.7% 3.8% 4.0% 2.5% 3.5% 2.0% 3.0% 2.5% 1.5% 2.0% 1.0% 1.5% 1.0% 0.5% 0.5% 0.0% 0.0% Q1FY13 Q1FY14 Q1FY13 Q1FY14 Return on assets Return on average networth 3.0% 25.0% 2.7% 20.1% 2.5% 20.0% 18.8% 2.2% 2
Slide 8: Improving asset quality
Improving asset quality Figures in Rs million Gross NPA Net NPA 900 832 3.00% 571 2.50% 571 800 2.57% 745 2.50% 700 571 1.97% 2.00% 2.22% 600 2.00% 500 570 1.52% 1.50% 1.50% 569 400 570 1.00% 300 1.00% 200 0.50% 569 0.50% 100 - 0.00% 569 0.00% Q1FY13 Q1FY14 Q1FY13 Q1FY14 Gross NPA Gross NPA % Net NP
Slide 9: Business model lends itself to seasonal variation in NPA
Business model lends itself to seasonal variation in NPA Quarter on quarter movement in NPA Q1 NPA movement 3.5% 3.0% 3.2% 2.8% 2.9% 2.8% 3.0% 2.8% 2.8% 2.6% 2.6% 2.6% 2.5% 2.2% 2.2% 2.4% 2.6% 2.1% 2.2% 2.2% 2.4% 1.9% 2.4% 2.3% 2.2% 2.0% 1.8% 2.2% 1.4% 2.0% 1.5% 2.0% 1.5% 1.2% 1.8% 1.6% 2.0% 1.5% 1.
Slide 10: Borrowing profile
Borrowing profile Figures in Rs million Sources of borrowing Sources (as on 30 June’13) Amount Repco Bank Banks 17,587 Ltd, 8% National Housing Bank 10,582 Repco Bank Ltd 2,401 National Total 30,570 Housing Bank, 35% Banks, 58% Repco Home Finance Limited Earnings Presentation July 2013 10
Slide 11: Management’s comment
Management’s comment We are pleased with our performance in the quarter. We expanded our loan book by 29% during the quarter, on the back of strong 80% year on year growth in disbursements. Our net interest income grew by 58% with PAT growth of 57% YoY. We continue to focus on strong risk management
Slide 12: Business Overview
Business Overview
Slide 13: Niche housing finance company
Niche housing finance company ♦ 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-professionals penetrated markets ► Loans to salaried and non-salaried borrowers constitut
Slide 14: Strong base in South India; expanding footprint
Strong base in South India; expanding footprint 80 branches and 13 satellite centres Focus on under penetrated markets with two third branches in tier-II & tier-III cities Opened a new branch and converted 6 satellite centres into branches during the quarter Region-wise loan book (30th June’13
Slide 15: Differentiated business model
Differentiated business model Robust risk Direct marketing and management systems Low cost operations customer contact and processes ♦ Reaching out to ♦ Lean branch model with ♦ Risk management customer through direct 3-4 employees per systems at every step of & localized advertising, branch with lo
Slide 16: Annexure
Annexure
Slide 17: Shareholding pattern
Shareholding pattern As on June 30, 2013 Outstanding shares – 62.16 million Major Non-Promoter % Shareholders shareholding Carlyle (First Carlyle Growth VI) 17.74 NRIs, WCP Holdings III 9.96 35.58% Creador I, LLC 7.46 DII, 13.75% SBI Emerging Business Fund 3.70 Nomura India Investment Fund 2.00 FII,
Slide 18: Q1 FY’14 Results
Q1 FY’14 Results P&L (Rs million) Q1FY14 Q1FY13 YoY (%) Q4FY13 QoQ FY13 Interest Income 1,143 874 1,094 30.8% 4.5% 3,912 Interest Expenses 719 606 700 18.6% 2.7% 2,656 Net Interest Income 424 268 394 58.3% 7.7% 1,256 Non-interest Income 49 22 46 121.5% 5.1% 148 Operating Expenses 78 47 87 64.2% -11.
Slide 19: Q1 FY’14 key ratios
Q1 FY’14 key ratios Q1FY14 Q1FY13 Q4FY13 FY13 Yield 12.55% 12.27% 12.32% 12.32% Cost of Debt 9.40% 9.60% 9.57% 9.57% Spread 3.15% 2.67% 2.75% 2.75% NIM 4.66% 3.76% 4.63% 3.95% Cost to Income) 16.38% 16.28% 17.32% 17.32% Return on Assets 2.69% 2.22% 2.52% 2.52% Return on Equity 18.80% 20.14% 24.00% 2
Slide 20: Contact us
Contact us For any Investor Relations queries, please contact: V. Raghu, Executive Director/ Bala , Chief Manager, Investor Relations Ajay Jindal/ Pooja Dokania Repco Home Finance Limited Four-S Services Pvt Limited Phone: +91 44 42106650 Phone: +91 22 4215 3659 Email: [email protected] Email: aja