Repco Home Finance Ltd. · NSE:REPCOHOME

Repco Home Finance — Investor Presentation (May 2015)

31 slides from Repco Home Finance's investor presentation, May 2015

  1. Slide 1: Corporate Presentation May 2015

    Repco Home Finance Limited Corporate Presentation May 2015 www.repcohome.com Corporate Presentation  May 2015

  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 model ► Strong credit process  Industry Opportunity  FY15 and Q4 Performance  Outlook &

  3. Slide 3: Company Overview

    Repco Home Finance Limited Company Overview Corporate Presentation  May 2015

  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 (Mar 31, 2015) Rs. 60,129 mn • Net worth (Mar 31, 2015) Rs. 8,057 mn • Average loan per unit Rs. 1.2 mn • Number of live accounts 57,415 • Current Employee Strength 545 • Cost to Income ratio 21.0% • Capital Adequacy Ratio 20.3% (Provis

  6. Slide 6: 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 60 billion in FY15 2000 • Incorporated as Repco Home Finance Limited 2002 • Received certificate of registration from NHB 2003 • Loan book crossed Rs. 1 bn 2007 • Investment by Carlyle •

  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 generally underserved by larger HFCs & banks – Direct customer contact, tailored approach and personal evaluation processe

  8. Slide 8: Expanding footprint

    Expanding footprint Repco Home Finance Limited  Presence in 11 states (including Telangana) and 1 Union Territory with 106 branches and 36 satellite centres  Ventured into Jharkhand in FY15  Presence beyond South: branches in West Bengal, Orissa, Maharashtra, Gujarat, Madhya Pradesh and Jharkhand

  9. Slide 9: Region-wise loan book – not just a south India based company

    Region-wise loan book – not just a south India based company Repco Home Finance Limited Andhra Telangana, Exposure Others, 2.2% Pradesh, 3.4% Key regional presence FY14 FY15 8.7% Gujarat, Andhra Pradesh & Telangana 13.9% 12.2% 1.5% Gujarat 0.3% 1.5% Karnataka 12.0% 12.2% Karnataka, 12.2% Kerala 3.7%

  10. Slide 10: Robust business model

    Robust business model Repco Home Finance Limited • Reach 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 transmission

  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  May 2015

  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: FY15 and Q4 Performance

    Repco Home Finance Limited FY15 and Q4 Performance Corporate Presentation  May 2015

  16. Slide 16: Robust growth in FY15

    Robust growth in FY15 Repco Home Finance Limited Figures in Rs Million Income from Operations Net Interest Income Pre DTL Profit after Tax FY15 2,373 1,373 6,922 Post DTL Net Profit growth of 12% to Rs. 30% 25% 24% 1,231 mn FY14 5,342 1,908 1,101 Loan Book Sanctions Disbursements FY15 60,129 23,989

  17. Slide 17: Driven by strong Q4 FY15

    Driven by strong Q4 FY15 Repco Home Finance Limited Figures in Rs Million Income from Operations Net Interest Income Pre DTL Profit after Tax Q4 FY15 1,913 662 389 28% 23% 24% Q4 FY14 1,498 539 315 Post DTL Profit after Tax Sanctions Disbursements Q4 FY15 8,346 7,505 348 11% 55% 47% Q4 FY14 315 5,37

  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 23,989 60,129 21,812 60,000 20,000 18,225 50,000 46,619 17,153 15,000 12,848 40,000 35,447 11,674 10,000 30,000 5,000 20,000 FY13 FY14 FY15 FY13 FY14 FY15 Sanct

  19. Slide 19: 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 7,000 6,922 2,500 2,373 6,000 5,342 1,908 2,000 5,000 4,055 4,000 1,500 1,256 3,000 1,000 2,000 1,000 500 - - FY13 FY14 FY15 FY13 FY14 FY15 Net profit Cost to income

  20. Slide 20: And steady profitability ratios

    And steady profitability ratios Repco Home Finance Limited Net interest margin Spread 5.0% 4.7% 4.5% 3.5% 3.2% 4.5% 4.0% 2.9% 4.0% 3.0% 2.8% 3.5% 2.5% 3.0% 2.0% 2.5% 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.0% 0.0% FY13 FY14 FY15 FY13 FY14 FY15 Return on average net worth Return on assets 20.0% 3.0% 2.7

  21. Slide 21: Increased focus on asset quality & provisioning

    Increased focus on asset quality & provisioning Repco Home Finance Limited Figures in Rs Million Gross NPA Net NPA 1,000 1.48% 1.47% 500 1.50% 1.20% 800 1.32% 1.30% 400 0.99% 1.00% 600 1.10% 300 348 332 0.90% 298 0.80% 400 791 200 686 0.70% 525 0.72% 200 100 0.60% 0.50% 0.50% - 0.30% - 0.40% FY13 FY

  22. Slide 22: Sustainable improvement in asset quality

    Sustainable improvement in asset quality Repco Home Finance Limited Movement in NPAs 3.5% 2.9% 3.0% 2.6% 2.5% 2.1% 2.2% 2.2% 2.0% 2.0% 2.0% 2.3% 1.6% 1.6% 1.4% 2.0% 1.5% 1.5% 1.5% 1.3% 1.6% 1.5% 1.5% 1.0% 1.3% 1.2% 1.0% 1.0% 0.9% 0.5% 0.8% 0.7% 0.5% 0.0% Gross NPA Net NPA • Owing to seasonality, Q1

  23. Slide 23: Diversified source of funding

    Diversified source of funding Repco Home Finance Limited Figures in Rs million Sources of borrowing Sources (as on March 31, 2015) Amount Banks 34,482 100% 1% (CPs) National Housing Bank 10,948 10% 2% (NCDs) 8% 80% Repco Bank Ltd 4,014 Non Convertible Debentures (NCDs) 1,000 60% 65% 68% Commercial P

  24. Slide 24: Outlook & Strategy

    Repco Home Finance Limited Outlook & Strategy Corporate Presentation  May 2015

  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  May 2015

  27. Slide 27: Shareholding pattern

    Shareholding pattern Repco Home Finance Limited Outstanding shares – 62.36 mn % Major Non-Promoter Shareholders shareholding Smallcap World Fund, Inc 6.33% Bodies Parvest Equity India 3.26% Individuals, Corporates India Capital Fund Limited 3.09% 12.00% , 3.86% Goldman Sachs India Fund Limited 2.22%

  28. Slide 28: Profit and loss statement

    Profit and loss statement Repco Home Finance Limited Q4 Q4 Q3 QOQ YoY (Rs. million) FY15 FY14YoY (%) FY15 (%) FY15 FY14 (%) Income: Revenue from operations 1,913 1,498 28% 1,756 9% 6922 5341 30% Other Income 1 1 0 1 31% 8 12 -31% Total Income 1,915 1,499 28% 1,757 9% 6,930 5,353 29% Expenses: Intere

  29. Slide 29: Balance sheet

    Balance sheet Repco Home Finance Limited (Rs. million) As on Mar 31, 2015 As on Mar 31, 2014 EQUITY AND LIABILITIES: Shareholder's Funds 8,121 7,381 Share Capital 624 622 Reserves and Surplus 7,497 6,760 Non-Current Liabilities 39,560 29,666 Long-term borrowings 38,797 29,108 Long term provisions 76

  30. Slide 30: Key metrics

    Key metrics Repco Home Finance Limited Key Ratios March‘15 March'14 March'13 Yield 12.5% 12.6% 12.3% Cost of Debt 9.6% 9.3% 9.6% Spread 2.9% 3.2% 2.8% NIM 4.5% 4.7% 4.0% Cost to Income 21.0% 18.4% 17.3% Return on Assets 2.3% 2.7% 2.5% Return on Equity 16.1% 16.4% 17.4% Gross NPA 1.3% 1.5% 1.5% Net N

  31. Slide 31: For any Investor Relations queries, please 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

Repco Home Finance — Investor Presentation (May 2015) on 6ix