Dewan Housing Finance Corporation Limited
Dewan Housing Finance — FY2020 Earnings Presentation
25 slides from Dewan Housing Finance's earnings presentation, Jul 21, 2020
Slide 1: Cover letter to stock exchanges on FY20 results presentation
DHFL/CSD/2020-21/1850 21st July 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 FY20 Results
Update on FY20 Results July 2020
Slide 3: Section 1: FY20 Earnings Update
Section 1 FY20 Earnings Update Slide 2
Slide 4: Financial Performance – Q4 FY19-20 / FY19-20
Financial Performance – Q4 FY19-20 / FY19-20 (values in Rs crore) FY20 66,203 -5,538 -32% -168% FY19 97,978 8,102 On B/S Loan Net Worth Assets * Q4 2,392 2,115^ -7,635 FY20 9,343 2,990^ -13,612 FY20 -19% - -28% - 934% 26% Q4 2,967 205 -2,223 FY19 12,903 2,378 -1.036 FY19 Operating Operating Total In
Slide 5: Profit and Loss Statement (Standalone)
Profit and Loss Statement (Standalone) (values in Rs crore) Q4FY20 FY20 vs Q4FY20 Q4FY19 vs FY20 FY19 FY19 Q4FY19 TOTAL INCOME 2,392 2,967 -19% 9,343 12,903 -28% EXPENSES: Finance Costs * 133 2,349 -94% 5,725 9,393 -39% Net Loss on Fair Value Changes 12,403 2,383 421% 14,996 2,458 510% Impairment on
Slide 6: Key Financial Metrics
Key Financial Metrics (values in Rs crore) Q4FY20 Q3FY20 Q4FY19 FY20 FY19 Net Worth - Closing (5,538) 1,959 8,102 (5,538) 8,102 Loan Assets – Closing * 66,203 79,330 97,978 66,203 97,978 Total Assets - Closing 85,838 94,808 106,475 85,838 106,475 RATIOS BASED ON REPORTED FINANCIALS Net Interest Marg
Slide 7: Operating Expenses Trend
Operating Expenses Trend (values in Rs crore) 1,200 200% 1,000 156.1% 150% 800 600 100% 64.0% 60.6% 400 43.7% 50% 30.8% 28.0% 200 25.0% 24.9% 23.9% 22.2% 24.5% 784.1 1,080.2 548.9 230.2 250.2 204.3 395.4 146.0 162.9 136.0 104.1 0 0% FY18 FY19 FY20 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4F
Slide 8: Key Financial Metrics
Key Financial Metrics Net Interest Margin (NIM) 12.31% 3.27% 4.30% 3.27% 2.62% 2.62% 2.23% 1.42% FY19 FY20 Q4FY19 Q4FY20 Opex / Net Income Ratio Opex / Loan Book Ratio 64.0% 64.0% 1.59% 43.7% 30.8% 1.13% 30.8% 24.5% 0.67% 0.57% 15.2% 4.6% FY19 FY20 Q4FY19 Q4FY20 FY19 FY20 Q4FY19 Q4FY20 Ratios based
Slide 9: Fair Valuation of Wholesale Loans
Fair Valuation of Wholesale Loans Fair valuation methodology Wholesale loans (Gross) of Rs 49,585 cr 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) 48,348 49,
Slide 10: Section 2: Key Developments since Nov '19
Section 2 Key Developments since Nov ’19 Slide 9
Slide 11: 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 12: 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 13: 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 14: 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 15: 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 16: 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 17: Thank You
Thank You Slide 16
Slide 18: Annexure 1: Quarter Financial Results and Ratio Calculations
Annexure 1 8 Quarter Financial Results and Ratio Calculations Slide 17
Slide 19: 8 Qtrs P&L Statement (Standalone)
8 Qtrs P&L Statement (Standalone) (values in Rs crore) Q4FY20 Q3FY20 Q2FY20 Q1FY20 Q4FY19 Q3FY19 Q2FY19 Q1FY19 FY20 FY19 FY18 Interest Income 2,373.2 2,412.4 2,092.0 2,378.6 2,999.4 3,257.7 3,286.32 2,970.25 9,256.2 12,513.7 9,817.3 Interest Expenses 133.1 1,423.3 2,009.8 2,159.0 2,349.3 2,410.3 2,4
Slide 20: 8 Qtrs Ratio Analysis
8 Qtrs Ratio Analysis Q4FY20 Q3FY20 Q2FY20 Q1FY20 Q4FY19 Q3FY19 Q2FY19 Q1FY19 FY20 FY19 KEY RATIOS REPORTED NIM % (annualised) 12.31% 4.93% 0.38% 0.93% 2.62% 3.19% 3.18% 3.20% 4.30% 3.27% Opex/ Net Income Ratio * ^ 4.61% 13.41% 156.07% 60.59% 64.03% 22.17% 23.91% 24.92% 15.17% 30.78% RoE N/A 246.03%
Slide 21: 8 Qtrs P&L Statement – with Normalised Interest Expenses
8 Qtrs P&L Statement – with Normalised Interest Expenses (values in Rs crore) Q4FY20 Q3FY20 Q2FY20 Q1FY20 Q4FY19 Q3FY19 Q2FY19 Q1FY19 FY20 FY19 FY18 Interest Income 2,373.2 2,412.4 2,092.0 2,378.6 2,999.4 3,257.7 3,286.32 2,970.25 9,256.2 12,513.7 9,817.3 Interest Expenses 1,966.8 1,950.9 2,009.8 2,
Slide 22: 8 Qtrs Ratio Analysis – with Normalised Interest Expenses
8 Qtrs Ratio Analysis – with Normalised Interest Expenses Q4FY20 Q3FY20 FY20 Q2FY20 Q1FY20 Q4FY19 Q3FY19 Q2FY19 Q1FY19 FY19 ** ** ** KEY RATIOS REPORTED NIM % (annualised) 2.23% 2.30% 0.38% 0.93% 2.62% 3.19% 3.18% 3.20% 1.42% 3.27% Opex / Net Income Ratio * ^ 24.48% 27.98% 156.07% 60.59% 64.03% 22.1
Slide 23: Annexure 2: Reported Financial Results
Annexure 2 Reported Financial Results Slide 22
Slide 24: Profit and Loss Statement (Standalone)
Profit and Loss Statement (Standalone) (values in Rs crore) Q4FY20 FY20 Q4FY20 Q3FY20 Q4FY19 vs FY20 FY19 vs Q4FY19 FY19 TOTAL INCOME 2,392.2 2,436.9 2,966.8 -19% 9,343.1 12,902.5 -28% EXPENSES: Finance Costs 133.1 1,423.3 2,349.3 -94% 5,725.2 9,392.9 -39% Net Loss on Fair Value Changes 12,403.3 1,1
Slide 25: Profit and Loss Statement (Consolidated)
Profit and Loss Statement (Consolidated) (values in Rs crore) Q4FY20 FY20 vs Q4FY20 Q3FY20 Q4FY19 vs FY20 FY19 FY19 Q4FY19 TOTAL INCOME 2,161.0 2,436.9 2,975.9 -27% 9,578.9 12,911.7 -26% EXPENSES: Finance Costs 133.2 1,423.3 2,355.3 -94% 5,736.2 9,416.9 -39% Net Loss on Fair Value Changes 12,045.6 1