Repco Home Finance Ltd. · NSE:REPCOHOME

Repco Home Finance — Investor Presentation (December 2013)

36 slides from Repco Home Finance's investor presentation, December 2013

  1. Slide 1: Corporate Presentation December 2013

    Corporate Presentation December 2013 www.repcohome.com

  2. Slide 2: Agenda

    Agenda  Company Overview ► Niche housing finance company………………………………………………..04 ► Business performance………………………………………………………………05 ► Key milestones……………………………………………………………………….06 ► Focus on under penetrated markets and segments………………………...07 ► Geographic presence……………………………………….…………….………08 ► Differenti

  3. Slide 3: Company Overview

    Company Overview

  4. Slide 4: 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

  5. Slide 5: With strong business and financial performance

    With strong business and financial performance  Loans outstanding (Sept 30, 2013) Rs 40,356 million  Cumulative disbursements (Sept 30, 2013) Rs 56,000 million  Loan book CAGR (FY09-13) 38%  Total income CAGR (FY09-13) 38%  Profit after taxes CAGR (FY09-13) 31%  Capital adequacy ratio (CAR) 25

  6. Slide 6: Established as a well known brand

    Established as a well known brand Loan book grew from Rs 1 billion in FY03 to over Rs 35 billion in FY13, CAGR of 43% 2013 2012 IPO and 2010  listing of Opening 2009 shares on  of our Rated “A+ NSE and 2007  70th BSE (stable)” branch Loan book 2003 by ICRA  Rating  crossed  Loan book Opening o

  7. Slide 7: Focus on underpenetrated markets and segments

    Focus on underpenetrated markets and segments  Not reliant on highly competitive salaried segment and focus on self employed which are ignored by larger HFCs ► Direct customer contact, tailored approach and personal evaluation processes enabled to tap this segment  Focus on financing customers in

  8. Slide 8: Strong base in South India; contiguous expansion beyond South

    Strong base in South India; contiguous expansion beyond South FY08 FY09 FY11 FY13 Gujarat Maharashtra Odisha and West Bengal  On a contiguous expansion strategy with new Region-wise loan book State-wise retail branches in Maharashtra, Gujarat, Odisha and (30th Sept’13) Sept’13 network West Bengal o

  9. Slide 9: 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

  10. Slide 10: Robust credit process – Appraisal, Monitoring, Collection

    Robust credit process – Appraisal, Monitoring, Collection Through branch Loan sanction order to borrower Branch Level Process Head Office Level Process  Personal interview Verification & submission of original title 2 Tier Credit Thorough review of documents & Appraisal   Scrutiny by credit offic

  11. Slide 11: Organization structure and board of directors

    Organization structure and board of directors Marquee Promoters/Investors Experienced Board of Directors Managing Director Executive Directors Finance Human resource Legal Marketing Risk Technology Board of Directors T S Krishna Murthy, Chairman V Nadanasabapathy B.Anand  Over 50 years’ experience,

  12. Slide 12: Professional management with significant experience in financial services

    Professional management with significant experience in financial services R Varadarajan ♦ Over 35 years of experience in banking Managing Director V Raghu Executive ♦ Over 32 years of experience. Earlier worked as GM with NHB and also with RBI and SBI Directors Executive Director P Natarajan ♦ Over

  13. Slide 13: Industry Opportunity

    Industry Opportunity

  14. Slide 14: Multiple growth drivers for housing finance

    Multiple growth drivers for housing finance Increasing urbanization Shortage of urban housing (mn units) 40 % of urban population Katcha Homeless 34 Total urban 35 units, conditions, 28 30 housing 26 Obsolesce 0.99 0.53 30 shortage of 23 nt houses, 25 2.27 18.78 mn 17 18 18 20 Congested units 14 15

  15. Slide 15: Sizeable opportunity in the under served segments

    Sizeable opportunity in the under served segments High % of self employed in total Metro & Urban areas continue to workforce dominate banks home loan portfolio Salaried, 100% 10.3% 8.8% 7.1% 7.5% 15.5% 12.4% 14.1% 16.0% 80% 15.2% 24.4% 26.7% 60% 27.2% 27.8% Self employed, 40% Casual 51.0% 47.3% 54.5

  16. Slide 16: H1 FY’14 Performance

    H1 FY’14 Performance

  17. Slide 17: Strong growth in loan book continues – 30% YoY

    Strong growth in loan book continues – 30% YoY Figures in Rs million Sanctions and disbursements Loan Book 9,000 8,437 45,000 40,356 8,000 7,597 40,000 7,000 35,000 30,978 5,669 6,000 4,959 30,000 5,000 25,000 4,000 20,000 3,000 15,000 2,000 10,000 1,000 - 5,000 H1FY13 H1FY14 - Sanctions Disbursemen

  18. Slide 18: With robust growth in income and profits

    With robust growth in income and profits Figures in Rs million Income from operations Net interest income 3,000 1,000 898 2,486 900 2,500 800 1,888 700 2,000 571 600 1,500 500 400 1,000 300 500 200 100 - - H1FY13 H1FY14 H1FY13 H1FY14 Net profit Cost to income ratio 600 20.0% 515 18.0% 15.4% 15.7% 50

  19. Slide 19: Steadily expanding margins and returns

    Steadily expanding margins and returns Spread Net interest margins 3.5% 3.3% 5.0% 4.7% 3.0% 2.8% 3.9% 2.5% 4.0% 2.0% 3.0% 1.5% 2.0% 1.0% 0.5% 1.0% 0.0% 0.0% Sept'12 Sept'13 Sept'12 Sept'13 Return on assets Return on average networth 3.0% 25.0% 22.8% 2.7% 20.6% 2.4% 2.5% 20.0% 2.0% 15.0% 1.5% 10.0% 1

  20. Slide 20: Continuous improvement in asset quality

    Continuous improvement in asset quality Figures in Rs million Gross NPA Net NPA 800 2.50% 600 1.80% 656 2.12% 672 4901.59% 1.60% 700 500 2.00% 1.40% 600 400 368 1.20% 1.67% 500 1.50% 1.00% 400 300 0.92% 0.80% 300 1.00% 200 0.60% 200 0.40% 0.50% 100 100 0.20% - 0.00% - 0.00% Sept'12 Sept'13 Sept'12 S

  21. Slide 21: Business model lends itself to seasonal variation in NPA

    Business model lends itself to seasonal variation in NPA Quarter on quarter movement in NPA Q2 NPA movement 2.2% 2.1% 3.5% 3.2% 2.8% 2.9% 2.0% 3.0% 1.9% 2.6% 1.8% 2.2% 1.8% 1.7% 1.7% 2.5% 2.1% 2.2% 1.9% 2.6% 1.8% 1.6% 2.0% 2.2% 2.3% 1.7% 1.4% 2.0% 1.5% 1.6% 1.5% 1.2% 1.8% 1.4% 1.6% 1.5% 1.4% 1.0% 1.

  22. Slide 22: ICRA upgrades long term rating to AA-

    ICRA upgrades long term rating to AA- Figures in Rs million Sources of borrowing Sources (as on 30 Sept’13) Amount Banks 20,830 Repco Bank Ltd, National Housing Bank 9,970 7% Repco Bank Ltd 2,400 National Total 33,190 Housing Bank, 30% Banks, 63%  During the quarter, ICRA upgraded the rating Catego

  23. Slide 23: Historical Financial Performance

    Historical Financial Performance

  24. Slide 24: Strong loan book growth

    Strong loan book growth Figures in Rs million Loan book Sanctions and disbursements 40,000 14,000 12,848 35,448 11,116 35,000 11,674 12,000 9,918 10,423 38% CAGR 30,000 28,041 10,000 9,156 25,000 20,753 8,000 6,490 20,000 5,831 14,080 6,000 4,730 15,000 4,284 9,906 10,000 4,000 5,000 2,000 - - FY09

  25. Slide 25: Driving robust income and earnings growth

    Driving robust income and earnings growth Figures in Rs million Income from operations Net interest income 4,500 4,057 1,400 1,256 4,000 1,200 3,500 3,188 1,032 38% CAGR 36% CAGR 3,000 1,000 860 2,500 2,256 800 649 2,000 1,636 600 1,500 1,128 370 400 1,000 500 200 - - FY09 FY10 FY11 FY12 FY13 FY09 F

  26. Slide 26: And healthy margins and returns

    And healthy margins and returns Net interest margins Return on average networth 30.0% 6.0% 5.4% 26.5% 25.5% 4.9% 24.0% 25.0% 22.8% 5.0% 4.5% 4.2% 4.0% 20.0% 18.7% 4.0% 3.0% 15.0% 2.0% 10.0% 1.0% 5.0% 0.0% 0.0% FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13* *RoANW for FY13 calculated by removing

  27. Slide 27: Outlook & Strategy

    Outlook & Strategy

  28. Slide 28: Profitable growth with deeper market presence

    Profitable growth with deeper market presence Customer ♦ Focus on underserved non- salaried segment ♦ Increase penetration through better customer engagement Profitability Coverage ♦ Access low cost and ♦ Deeper penetration in diversified sources of funds Southern region markets and expansion in oth

  29. Slide 29: Annexure

    Annexure

  30. Slide 30: Shareholding pattern

    Shareholding pattern As on Sept 30, 2013 Outstanding shares – 62.16 million Major Non-Promoter Shareholders % shareholding NRIs/Foreig n Carlyle (First Carlyle Growth VI) 17.74 Individuals/ Non WCP Holdings III 9.96 Resident Companie Creador I, LLC 7.46 s, 35.8% DII, 15.9% SBI Emerging Business Fund

  31. Slide 31: H1 and Q2 FY’14 Results

    H1 and Q2 FY’14 Results P&L (Rs million) Q2FY14 Q2FY13 Q1FY14 YoY QoQ H1FY14 H1FY13 YoY Interest Income 1,244 951 1,143 31% 9% 2,387 1,825 31% Interest Expenses 771 648 719 19% 7% 1,490 1,254 19% Net Interest Income 473 303 424 56% 11% 898 571 57% Non-interest Income 56 41 49 35% 14% 104 63 65% Oper

  32. Slide 32: Balance sheet – Sept 30, 2013

    Balance sheet – Sept 30, 2013 (Rs million) Sept’13 Sept’12 YoY EQUITY AND LIABILITIES: Share Capital 622 464 34% Reserves and Surplus 6,238 2,924 113% Networth 6,860 3,389 102% Long-term borrowings 24,206 19,684 23% Short-term borrowings 2,988 3,067 -3% Other current liabilities 6,514 5,030 30% Prov

  33. Slide 33: Key ratios

    Key ratios For period ended Sep’13 Sept’12 June’13 Mar’13 Yield 12.6% 12.4% 12.6% 12.3% Cost of Debt 9.3% 9.6% 9.4% 9.6% Spread 3.3% 2.8% 3.2% 2.8% NIM 4.7% 3.9% 4.7% 4.0% Cost to Income 15.7% 15.4% 16.4% 17.3% Return on Assets 2.7% 2.4% 2.7% 2.5% Return on Equity 20.6% 22.8% 18.8% 24.0% Gross NPA 1

  34. Slide 34: FY13: Profit and loss statement

    FY13: Profit and loss statement P&L (Rs million) FY13 FY12 YoY (%) Income: Revenue from operations 4,057 3,188 27.3% Other Income 3 1 Total Income 4,060 3,189 27.3% Expenses: Interest and other Financial Charges 2,657 2,023 31.3% Employee benefit expense 141 105 34.3% Depreciation and amortization e

  35. Slide 35: Last 5 years - Key metrics

    Last 5 years - Key metrics Particulars Units FY09 FY10 FY11 FY12 FY13 Outstanding Loan Rs mn 9,906 14,080 20,753 28,041 35,448 Book Sanctions Rs mn 4,730 6,490 9,918 11,116 12,848 Disbursements Rs mn 4,284 5,831 9,156 10,423 11,674 Income from Rs mn 1,128 1,636 2,256 3,188 4,057 Operations Net Inter

  36. Slide 36: Contact us

    Contact us For any Investor Relations queries, please contact: V. Raghu, Executive Director/ Bala, Chief Manager, Investor Relations Pooja Dokania/Seema Shukla Repco Home Finance Limited Phone: +91 9920063991/91 124 4241441 Phone: +91 44 42106650 Email: pooja.dokania@four- Email: [email protected]

Repco Home Finance — Investor Presentation (December 2013) on 6ix