Repco Home Finance Ltd. · NSE:REPCOHOME
Repco Home Finance — Q3 FY2014 Earnings Presentation
20 slides from Repco Home Finance's earnings presentation, February 2014
Slide 1: Earnings Presentation Q3FY14
Earnings Presentation Q3FY14 www.repcohome.com
Slide 2: Agenda
Agenda Q3 & 9MFY’14 Performance ► Business summary…………………………………………….……..04 ► Financial performance for Q3 and 9M’FY14 ………………..05-10 ► Diversified source of funding…………-……………………..…..11 Business Overview ► Company overview………………………………………………..13 ► Geographic presence………………………………………….…14 ► Different
Slide 3: 9M FY'14 Performance
9M FY’'14 Performance
Slide 4: Business summary
Business summary Loans outstanding (Dec 31, 2013) Rs 43,194 million Cumulative disbursements (Dec 31, 2013) Rs 60,450 million Average loan per unit Rs 1.07 million Number of live accounts 47,064 Total number of employees 411 Capital adequacy ratio (CAR) 24.95% Net worth (Dec 31, 2013)
Slide 5: Loan book expands 32% YoY for 9MFY'14
Loan book expands 32% YoY for 9MFY’14 Figures in Rs million Sanctions and disbursements Loan Book 14,000 12,849 50,000 12,033 43,194 12,000 45,000 40,000 10,000 8,590 32,709 7,777 35,000 8,000 30,000 6,000 25,000 20,000 4,000 15,000 2,000 10,000 - 5,000 9M FY13 9M FY14 - Sanctions Disbursements Dec'
Slide 6: Leading to strong earnings growth – 50% PAT growth
Leading to strong earnings growth – 50% PAT growth Figures in Rs million Income from operations Net interest income 4,500 1,600 3,844 1,369 4,000 1,400 3,500 1,200 2,919 3,000 1,000 862 2,500 800 2,000 600 1,500 1,000 400 500 200 - - 9M FY13 9M FY14 9M FY13 9M FY14 Net profit Cost to income ratio 90
Slide 7: And healthy margins and returns ratios
And healthy margins and returns ratios Spread Net interest margins 3.5% 3.2% 5.0% 4.6% 3.0% 2.7% 3.8% 4.0% 2.5% 2.0% 3.0% 1.5% 2.0% 1.0% 1.0% 0.5% 0.0% 0.0% Dec'12 Dec'13 Dec'12 Dec'13 Return on assets Return on average networth (TTM) 25.0% 23.7% 3.0% 2.7% 20.4% 2.5% 2.3% 20.0% 2.0% 15.0% 1.5% 10.0%
Slide 8: Asset quality and provision coverage improves further
Asset quality and provision coverage improves further Figures in Rs million Gross NPA Net NPA 1,200 3.50% 800 753 2.50% 2.3% 963 2.9% 3.00% 700 1,000 877 2.00% 600 549 2.50% 800 500 2.0% 2.00% 1.50% 600 400 1.3% 1.50% 1.00% 300 400 1.00% 200 200 0.50% 0.50% 100 - 0.00% - 0.00% Dec'12 Dec'13 Dec'12 D
Slide 9: Q3FY14 Performance - Robust YoY growth
Q3FY14 Performance - Robust YoY growth Figures in Rs million Income from Operations Net Interest Income Profit after Tax Q3FY14 1,358 471 271 32% 62% 63% Q3FY13 1,031 290 167 Loan Book Sanctions Disbursements Q3FY14 43,194 4,403 4,427 32% 51% 57% Q3FY13 32,709 2,921 2,818 Repco Home Finance Limited
Slide 10: Significant improvement in asset quality
Significant improvement in asset quality Q3 NPA movement 3.5% 3.2% 2.9% 3.0% 2.8% 2.5% 2.5% 2.0% 2.0% 2.2% 2.3% 1.5% 1.0% 1.3% 0.5% 0.0% Q3FY11 Q3FY12 Q3FY13 Q3FY14 Gross NPA % Net NPA % With strong focus on recoveries, there has been a continuous improvement in the asset quality over quarters. Fo
Slide 11: Diversified source of funding
Diversified source of funding Figures in Rs million Sources of borrowing Repco Bank Ltd, 9% Sources (as on 31 Dec’13) Amount National Banks 23,304 Housing Bank, National Housing Bank 9,359 26% Repco Bank Ltd 3,342 Total 36,005 Banks, 65% Repco Home Finance Limited Earnings Presentation February
Slide 12: Business Overview
Business Overview
Slide 13: 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
Slide 14: Strong base in South India; expanding footprint
Strong base in South India; expanding footprint 82 branches and 21 satellite centres Focus on under penetrated markets with two third branches in tier-II & tier-III cities Region-wise loan book (31st Dec’13) Maharashtra Others, 3.3% Andhra , 4.5% Pradesh, 12.9% Kerela, 3.7% Tamil Nadu, 63.7% Kar
Slide 15: 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
Slide 16: Annexure
Annexure
Slide 17: Shareholding pattern
Shareholding pattern As on Dec 31, 2013 Outstanding shares – 62.16 million Major Non-Promoter Shareholders % shareholding NRIs/Forei gn Individuals Carlyle (First Carlyle Growth VI) 17.74 /Non WCP Holdings III 9.96 Resident Compani DII, 12.0% Creador I, LLC 7.46 es, 35.8% FII, 6.4% SBI Emerging Busi
Slide 18: 9M and Q3 FY'14 Results
9M and Q3 FY’14 Results P&L (Rs million) Q3 FY'14 Q3 FY'13 Q2 FY'14 % Chg YoY % Chg QoQ 9M FY'14 9M FY'13 % Chg YoY Income from Operations 1,358.2 1,031.0 1,299.0 31.7% 4.6% 3843.8 2919.0 31.7% Interest Income 1,320.8 992.9 1,243.9 33.0% 6.2% 3708.1 2818.0 31.6% Interest Expenses 849.1 702.3 770.8 2
Slide 19: Key ratios
Key ratios Key Ratios Dec'13 Dec'12 Sept'13 Yield 12.6% 12.4% 12.6% Cost of Debt 9.4% 9.7% 9.3% Spread 3.2% 2.7% 3.3% NIM 4.6% 3.8% 4.7% Cost to Income (Net Interest Income) 17.6% 16.2% 15.7% Return on Assets 2.7% 2.3% 2.7% Return on Equity 20.4% 23.7% 20.6% Gross NPA 2.0% 2.9% 1.7% Net NPA 1.3% 2.3
Slide 20: 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: ed_vr@repcohome.com