Can Fin Homes Ltd. · NSE:CANFINHOME
Can Fin Homes — H1 FY17 Earnings Presentation
32 slides from Can Fin Homes's earnings presentation, September 2016
Slide 1: Can Fin Homes Ltd. at a Glance
Can Fin Homes Ltd. .. at a Glance 29 years of vision, passion and progress Offering home loans since 1987….. and it is just a beginning Information to Investors H1 FY17 ended September 2016 www.canfinhomes.com 1
Slide 2: About us
About us ▪ 29 year old institution registered as a deposit taking HFC with NHB ▪ Promoted by Canara Bank in the year 1987 which owns 43.45% shareholding of Can Fin Homes Legacy ▪ Listed in 1991, with uninterrupted dividend payment since inception ▪ Dominance in South (76% of business) as on Septembe
Slide 3: Board of Directors
Board of Directors Name of the Director Designation Occupation Shri. K.N.Prithviraj Chairman Former Chairman and (Independent) Managing Director, Oriental Bank of Commerce Shri Sarada Kumar Hota Managing Director General Manager (w.e.f. 19/05/2016) Canara Bank (Deputed to Can Fin) Smt P.V.Bharathi D
Slide 4: Performance Highlights - H1 FY17
Performance Highlights - H1 FY17 Loan approvals, Disbursements & Outstanding Loan Book grew by 37%, 34% & 29% resp. Op. Profit, Net Profit up by 51% & 55% Y-o-Y respectively, backed by NII growth of 43% Gross NPA continues to remain low at 0.25% (0.29% at Sept’15) Net NPA contained at 0.03%
Slide 5: Performance Highlights - 2Q FY17
Performance Highlights - 2Q FY17 Amounts in Rs. Crore Sl. No. Particulars Sept’15 Sept’16 Y-o-Y Gr Jun’16 Mar’16 (3m) (3m) (3m) (FY) 1 New Approvals 1099 1517 38% 1191 4418 2 Disbursements 949 1299 37% 1052 3922 3 Outstanding Loan Book 9303 11980 29% 11183 10643 4 Interest Income 254.20 320.29 26% 2
Slide 6: Performance Highlights - 2Q FY17
Performance Highlights - 2Q FY17 Amounts in Rs. Crore Sl. No. Particulars Sept ‘15 Sept’16 Y-o-Y Gr Jun’16 Mar’16 (3m) (3m) (3m) (FY) Profit Before Tax & 10 63.55 93.28 47% 84.03 273.27 Provisions 11 Provision for SA & NPA 7.50 6.00 5.50 19.41 12 Profit Before Tax 56.05 87.28 56% 78.53 253.86 13 Pro
Slide 7: Performance Highlights – H1 FY17
Performance Highlights – H1 FY17 Amounts in Rs. Crore Sl. No. Particulars Sept’15 Sept’16 Y-o-Y Gr Mar’16 (6m) (6m) (FY) 1 New Approvals 1972 2708 37% 4418 2 Disbursements 1756 2351 34% 3922 3 Outstanding Loan Book 9303 11980 29% 10643 4 Interest Income 490.93 619.57 26% 1044.41 5 Fees & Other Incom
Slide 8: Performance Highlights – H1 FY17
Performance Highlights – H1 FY17 Amounts in Rs. Crore Sl. No. Particulars Sept ‘15 Sept’16 Y-o-Y Gr Mar’16 (6m) (6m) (FY) 10 Profit Before Tax & Provisions 117.74 177.31 51% 273.27 11 Provision for SA & NPA 11.00 11.00 19.41 12 Profit Before Tax 106.74 165.81 55% 253.86 13 Provision for Taxation & D
Slide 9: Key Quarterly Data
Key Quarterly Data Amounts in Rs. Crore Income Statement Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep 15 Dec 15 Mar 16 Jun16 Sept16 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 NII 33.92 36.59 40.66 48.12 52.24 64.03 70.93 79.30 86.68 91.87 100.99 Other income 5.65 5.81 8.74 7.37 7.22 5.80 9.17 12.26 11.89 10.34 12.
Slide 10: Fresh Approvals
Fresh Approvals Rs. crores CAGR % Annual Growth .. Year on Year H1 Growth .. Year on Year 4,418 3,670 37% 2,907 7% 2708 1847 1973 1517 1047 1099 874 1,191 800 FY14 FY15 FY16 . H1 FY15 H1 FY16 H1 FY17 83 117 140 170 # of Branches/ Satellite Offices www.canfinhomes.com 10
Slide 11: Disbursement Profile
Disbursement Profile Rs. crores CAGR % Annual Growth .. Year on Year H1 Growth .. Year on Year 3,922 3,346 34% 2,548 9% 2351 1617 1756 1299 905 949 712 807 1,052 FY14 FY15 FY16 . H1 FY15 H1 FY16 H1 FY17 83 117 140 170 # of Branches/ Satelite Offices www.canfinhomes.com 11
Slide 12: Loan Book Growth
Loan Book Growth Rs. crores CAGR % 14000 11,980 12000 28.8% 10,643 10000 9,303 8,231 8000 7,037 5,844 6000 4000 2000 0 Mar'14 Sept'14 Mar'15 Sept'15 Mar'16 Sept'16 83 117 140 170 # of Branches/ Satellite Offices www.canfinhomes.com 12
Slide 13: Asset Quality - Year on Year
Asset Quality - Year on Year 1.60% 1.43% 1.40% 1.20% 1.07% 1.06% 1.00% 0.80% 0.71% 0.60% 0.39% 0.40% 0.21% 0.19% 0.2% 0.17% 0.20% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.00% Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 GNPA NNPA Nil Net NPA for successive 7th Year www.canfinhomes.com 13
Slide 14: Asset Quality - Quarter on Quarter
Asset Quality - Quarter on Quarter 0.35% 0.29% 0.29% 0.30% 0.28% 0.27% 0.26% 0.25% 0.25% 0.24% 0.25% 0.21% 0.19% 0.20% 0.17% 0.15% 0.11% 0.10% 0.09% 0.09% 0.10% 0.08% 0.04% 0.04% 0.05% 0.03% 0.00% 0.00% 0.00% 0.00% Mar'14 Jun'14 Sep'14 Dec'14 Mar'15 Jun'15 Sep'15 Dec'15 Mar'16 Jun'16 Sep'16 GNPA NNP
Slide 15: Net Profit Growth
Net Profit Growth Rs. crores CAGR % Annual Growth .. Year on Year H1 Growth .. Year on Year 157.11 55% 104.79 86.24 75.71 80% 67.48 55.06 37.41 35.38 18.45 49.73 32.10 18.96 FY14 FY15 FY16 . H1 FY15 H1 FY16 H1 FY17 www.canfinhomes.com 15
Slide 16: Capital Adequacy
Capital Adequacy 25.0% 20.69% 19.53% 20.0% 19.10% 18.40% 18.87% 18.00% 17.10% 16.10% 15.40% 15.0% 13.80% 12% 12% 12% 12% 10.0% CAR NHB Requirement 5.0% 0.0% Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 Jun'16 Sept'16 * NHB requirement: 12% ; Rights issue amount Rs.276.07 Cr received/accou
Slide 17: Return Matrices - ROA & ROE
Return Matrices - ROA & ROE 25.00% ROE 21.66% 21.73% 20.00% 17.89% 17.00% 15.00% 14.00% 13.00% 11.00% 10.00% 5.00% ROA 1.75% 1.60% 1.53% 1.69% 1.84% 1.87% 1.24% 0.00% Mar '12 Mar '13 Mar '14 Mar '15 Mar '16 Jun'16 Sept'16 ROE ROA *With Rights Issue (Rs.276 Cr) as on 13/03/15, No. of shares increased
Slide 18: Lending Basket
Lending Basket Category-wise Product-wise Distribution of Loan Book Sl . Category/Product Mar-14 Mar-15 Mar-16 Sept-16 No. O/s Amt. O/s Amt. O/s Amt. O/s Amt. 1 Salaried & Professionals i) Housing Loans 4676 6339 7768 8479 ii) Top-up Personal Loans 102 211 275 288 iii) Mortgage Loans/ Flexilap 163 2
Slide 19: Funding Basket
Funding Basket Funding Mix in Sept 2015 ( as%) Funding Mix in Sept 2016 (as%) SEP-15 SEP-16 BANKS DEP DEP Market 23% 2% BANKS 3% 18% Borrowings Market 37% Borrowings 48% NHB NHB 32% 37% • Backed by strong AAA ratings for our borrowing/NCD & A1+ for CP programs, cost of borrowing stands reduced at 8.
Slide 20: Ratings as on 31/03/16
Ratings as on 31/03/16 Sl. No. Nature of Borrowing Rating Agency ICRA Ltd. FITCH CARE 1 Deposits MAAA - - 2 Term Loans (Long) [ICRA] AAA - - 3 Term Loans (short) [ICRA] A1+ - - 4 Secured NCDs (SRNCD) [ICRA] AAA IND AAA CARE AAA 5 Unsecured NCDs [ICRA] AAA IND AAA CARE AAA (Tier II Subordinated Bonds
Slide 21: Branch network - 120 branches & 50 Satellite Offices
Branch network - 120 branches & 50 Satellite Offices Karnataka Bengaluru (19 branches), Belgaum, Hubli, Davanagere, Tamilnadu Mysore, Mangalore, Mandya, Shimoga, Tumkur, Udupi, Hosur, Chennai (7 branches) , Madurai, Namakkal, Trichy, Coimbatore, Salem, Erode, Vellore, Thiruchengode, Dindigul, Karur,
Slide 22: Stock Price & Book Value - Year to Year
Stock Price & Book Value - Year to Year Amounts in Rs. Crore Share Price as on 30/09/16 : Rs.1635 1154.4 606 330 290 191 220 152 170 128 134 190 107 112 136 52 80 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar' 16 BVPS Share Price Face Value – Rs.10/- per Equity Share Closing price as on the l
Slide 23: Future Outlook
Future Outlook Expected Loan book size will be Rs.35,000 Cr by 31/03/20 (Vision 2020 document) Business Budgets for 2016-17: Loan book size of Rs.13,500 Cr (from Rs.10,643 Cr at Mar’16) Number of Branches/Satellite Offices to be up at 175 (from 140 as at Mar 2016) 30 new Offices (10 branches
Slide 24: Disclaimer
Disclaimer The forward looking statements and projections, if any, contained in this presentation are predictions and involve known and unknown risks, uncertainties and other factors including the future changes or developments, the competitive environment, ability to implement the strategies and in
Slide 25: Management Team
Management Team Managing Director - Mr. Sarada Kumar Hota Deputy General Managers (5) Asst. Gen. Managers (11) Mrs. Shamila M , New Delhi Mr. Sudhakar B M, BLR-Vijayanagar Mr. P.Vijaya Sekhara Raju, P & D, RO Mr. N.Babu, Hyderabad -Kukkatapally Mr. Ajay kumar G shettar, BLR-Koramangala Mr. G.K.Nagar
Slide 26: Appendix
Appendix Year-wise statistics on: a) Business b) Income & Expenditure c) Financial & Ratios www.canfinhomes.com 26
Slide 27: Business Profile
Business Profile Sl . H1 H1 No. Parameters 2013-14 2014-15 2015-16 FY16 FY17 1 Loan Approvals(Rs. in cr) 2907 3670 4418 1972 2708 2 Loan Disbursements 2548 3346 3923 1756 2351 (Rs. in cr) 3 Total Loan Outstanding 5844 8231 10643 9303 11980 (Rs. in cr) 4 Out of 3 above, (i) Housing Loans (Rs. in cr)
Slide 28: Business Profile
Business Profile Sl . H1 H1 Parameters 2013-14 2014-15 2015-16 No. FY16 FY17 7 No. of Branches/Offices (i) Branches 83 107 110 110 120 (ii) Satellite Offices 0 10 30 25 50 8 No. of employees (incl. Junior 387 491 553 523 633 Officers on Contract) Interest Collected (Rs. in cr) 9 i. Housing Loan 509
Slide 29: Earnings Profile
Earnings Profile Sl . H1 H1 Parameters 2013-14 2014-15 2015-16 No. FY16 FY17 13 Interest Paid (Rs. in cr) 423 610 743 356 427 14 Net Interest Income (NII) (Rs. in cr) 134 178 301 135 193 15 Staff Cost (Rs. in cr) 18 25 33 16 19 16 Other Expenses (Rs. in cr) i. Establishment (Rent, Repairs & maintena
Slide 30: Earnings Profile
Earnings Profile Sl . H1 H1 Parameters 2013-14 2014-15 2015-16 No. FY16 FY17 Provisions & Taxes (Rs. in cr) i. Provisions 4.44 14.25 19.41 11.00 11.50 22 ii. Income Tax 30.93 43.23 80.00 33.82 51.85 iii. Deferred Tax Liability/(Asset) 0.24 7.98 16.76 5.44 9.17 23 Net Profit (Rs. in cr) 76 86 157 67
Slide 31: Financial Ratios
Financial Ratios Sl . H1 H1 Parameters 2013-14 2014-15 2015-16 No. FY16 FY17 30 Return on Equity (ROE) % 16.74 11.18 17.89 16.28 21.73 31 Return on Average Asset (ROA) % 1.53 1.23 1.69 1.55 1.87 32 Risk Weighted Assets (Rs. in cr) 3421.11 4945.71 4979.46 5651.18 5942.99 Capital Adequacy Ratio (CAR)
Slide 32: Thank You
Thank You www.canfinhomes.com 32