Repco Home Finance Ltd. · NSE:REPCOHOME

Repco Home Finance — Investor Presentation (November 2014)

31 slides from Repco Home Finance's investor presentation, November 2014

  1. Slide 1: Corporate Presentation Nov 2014

    Repco Home Finance Limited Corporate Presentation Nov 2014 www.repcohome.com Corporate Presentation  Nov 2014

  2. Slide 2: Agenda

    Agenda Repco Home Finance Limited  Company Overview ► Niche housing finance company ► Business summary ► Key milestones ► Focus on under penetrated markets and segments ► Geographic presence ► Robust business mode ► Strong credit process  Industry Opportunity  Q2 & H1 HY15 Performance  Outlook &

  3. Slide 3: Company Overview

    Repco Home Finance Limited Company Overview Corporate Presentation  Nov 2014

  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: Business Summary

    Business Summary Repco Home Finance Limited • Loans outstanding (Sep 30, 2014) Rs. 52,380 mn • Net worth (Sep 30, 2014) Rs. 7,529 mn • Average loan per unit Rs. 1.16 mn • Number of live accounts 52,702 • Current Employee Strength 490 • Cost to Income ratio 19.6% • Capital Adequacy Ratio 21.9% • Gros

  6. Slide 6: Journey so far – key milestones

    Journey so far – key milestones Repco Home Finance Limited Loan book grew from Rs 1 billion in FY03 to over Rs 50 billion in H1 FY15  2014: Loan book crossed Rs 50 bn; Ventured into Madhya Pradesh  2013: Loan book crossed Rs 40 bn; Network crossed 100  2013: Rated AA- by ICRA & CARE for debt faci

  7. Slide 7: 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 ignored by larger HFCs and Banks – Direct customer contact, tailored approach and personal evaluation processes  Focused

  8. Slide 8: Strong base in South India; expanding footprint

    Strong base in South India; expanding footprint Repco Home Finance Limited  Presence in 10 states and 1 Union Territory with 92 branches and 42 satellite centres  Ventured into Madhya Pradesh in FY14  Presence beyond South: branches in West Bengal, Orissa, Maharashtra, Gujarat and Madhya Pradesh

  9. Slide 9: Region-wise loan book

    Region-wise loan book Repco Home Finance Limited As on 30thSeptember 2014 West Bengal, Orissa, 0.3% 0.2% Andhra Gujarat, 1.0% Pradesh, 12.3% Karnataka, 11.9% Kerala, 3.7% Tamil Nadu, 64.0% Maharastra, 5.1% Puducherry, 1.6% Corporate Presentation  Nov 2014 9

  10. Slide 10: Robust business model

    Robust business model Repco Home Finance Limited • Reaching out to customer 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 transmissi

  11. Slide 11: 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

  12. Slide 12: Industry Opportunity

    Repco Home Finance Limited Industry Opportunity Corporate Presentation  Nov 2014

  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, 0.99 conditions, 35 30 Obsolesce 0.53 housing 28 30 26 nt houses, shortage of 23 25 2.27 18.78 mn 17 18 1

  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: Q2 FY15 and H1 FY15 Performance

    Repco Home Finance Limited Q2 FY15 and H1 FY15 Performance Corporate Presentation  Nov 2014

  16. Slide 16: Strong growth continues in Q2 FY15

    Strong growth continues in Q2 FY15 Repco Home Finance Limited Figures in Rs million Income from Operations Net Interest Income Pre DTL Profit after Tax Q2 FY15 1,692 593 363 30% 25 % 24 % Q2 FY14 1,299 473 292 Loan Book Sanctions Disbursements Q2 FY15 52,380 5,589 5,412 30% 15% 27% Q2 FY14 40,356 4,

  17. Slide 17: Strong growth continues in H1 FY15

    Strong growth continues in H1 FY15 Repco Home Finance Limited Figures in Rs million Net Interest Income Pre DTL Profit after Tax Post DTL Profit after Tax H1 FY15 1,123 643 575 25% 25% 12% H1 FY14 898 515 515 Loan Book Sanctions Disbursements H1 FY15 52,380 10,400 9,558 30% 23% 26% H1 FY14 40,356 8,

  18. Slide 18: 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 10,400 60,000 30% 9,558 52,380 10,000 8,437 50,000 7,597 40,356 8,000 40,000 6,000 30,000 4,000 20,000 2,000 10,000 - - H1 FY14 H1 FY15 Sep'13 Sep'14 Sanctions

  19. Slide 19: Robust income and earnings growth

    Robust income and earnings growth Repco Home Finance Limited Figures in Rs million Income from operations Net interest income 3,500 3,253 1,123 31% 1,200 25% 3,000 2,486 1,000 898 2,500 800 2,000 600 1,500 1,000 400 500 200 - - H1 FY14 H1 FY15 H1 FY14 H1 FY15 Pre DTL net profit Cost to income ratio

  20. Slide 20: Profitability ratios

    Profitability ratios Repco Home Finance Limited Net interest margin Spread 5.0% 4.7% 4.5% 3.3% 3.5% 3.0% 4.0% 3.0% 2.5% 3.0% 2.0% 2.0% 1.5% 1.0% 1.0% 0.5% 0.0% 0.0% Sep'13 Sep'14 Sep'13 Sep'14 Return on equity (TTM) Return on assets (TTM) 25.0% 3.0% 2.7% 19.2% 2.5% 20.0% 2.5% 16.3% 2.0% 15.0% 1.5% 1

  21. Slide 21: Asset quality & provisioning

    Asset quality & provisioning Repco Home Finance Limited Figures in Rs million Gross NPA Net NPA 1.67% 1.65% 1.00% 800 800 0.92% 1.50% 0.90% 600 600 0.81% 1.00% 0.80% 400 672 862 400 0.50% 0.70% 200 200 368 418 - 0.00% - 0.60% Sep'13 Sep'14 Sep'13 Sep'14 Gross NPA Gross NPA % Net NPA Net NPA % Provis

  22. Slide 22: Asset quality

    Asset quality Repco Home Finance Limited Quarterly movement in NPAs 2.1% 2.1% 1.9% 1.9% 1.8% 1.7% 1.7% 1.7% 1.5% 1.6% 1.3% 1.4% 1.3% 1.1% 0.9% 0.8% 0.9% 0.7% Sep'10 Sep'11 Sep'12 Sep'13 Sep'14 Gross NPA % Net NPA % • With strong focus on recoveries, there has been a steady improvement in asset quali

  23. Slide 23: Diversified sources of funding

    Diversified sources of funding Repco Home Finance Limited Figures in Rs million Borrowing mix Sources (as on 30 Sep’14) Amount Banks 30,232 100% National Housing Bank 9,685 7% 9% 90% Repco Bank Ltd 3,956 80% Total 43,873 70% 60% 63% 69% 50% 40% 30% 20% 30% 10% 22% 0% Sep'13 Sep'14 National Housing B

  24. Slide 24: Outlook & Strategy

    Repco Home Finance Limited Outlook & Strategy Corporate Presentation  Nov 2014

  25. Slide 25: 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

  26. Slide 26: Annexure

    Repco Home Finance Limited Annexure Corporate Presentation  Nov 2014

  27. Slide 27: Shareholding Pattern

    Shareholding Pattern Repco Home Finance Limited As on Sep 30, 2014 % Major Non-Promoter Shareholders Outstanding shares – 62.16 mn shareholding Creador I, LLC 7.46% Non Individuals, Smallcap World Fund, Inc 6.50% Bodies Resident 8.76% Corporates, India Capital Fund Limited 1.80% Companies, 3.76% 7.4

  28. Slide 28: Profit and loss statement

    Profit and loss statement Repco Home Finance Limited (Rs. Million) Q2 FY15 Q2 FY14 YoY (%) Q1 FY15QOQ (%) H1 FY15 H1 FY14 YoY (%) FY14 Income: Revenue from operations 1,692 1,299 30% 1,560 8% 3253 2486 31% 5,343 Other Income 5 1 1 6 6 -7% 11 Total Income 1,697 1,300 31% 1,561 9% 3,258 2,492 31% 5,35

  29. Slide 29: Balance Sheet

    Balance Sheet Repco Home Finance Limited (Rs. Million) As on Sep 30,2014 As on Sep 30,2013 EQUITY AND LIABILITIES: Shareholder's Funds 7,535 6,860 Share Capital 622 622 Reserves and Surplus 6,913 6,238 Non-Current Liabilities 32,411 24,688 Long-term borrowings 31,738 24,206 Long term provisions 673

  30. Slide 30: Key metrics

    Key metrics Repco Home Finance Limited Particulars Units Q2 FY15 Q2 FY14 Q1 FY15 Q4 FY14 Outstanding Loan Book Rs. Mn 52,380 40,356 48,923 46,619 Sanctions Rs. Mn 5,589 4,862 4,811 5,376 Disbursements Rs. Mn 5,412 4,259 4,146 5,120 Income from Operations Rs. Mn 1,692 1,299 1,560 1,498 Net Interest I

  31. Slide 31: Investor Relations contact

    Repco Home Finance Limited For any Investor Relations queries, please contact: V. Raghu, Executive Director/ Bala , Chief Manager, Investor Relations Repco Home Finance Limited Phone: +91 44 42106650 Email: ed_vr@repcohome.com bala@repcohome.com Safe Harbor: This presentation may have certain statem

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