Repco Home Finance Limited

Repco Home Finance

Limited
Earnings Presentation
Q3FY17

www.repcohome.com

Earnings Presentation February 2017

 Agenda
Repco Home Finance Limited

Q3Y17 Performance
Business summary..
Financial performance for Q3 & 9MFY17
Asset quality.
Diversified source of funding......

Geographic Presence
Expanding footprint...
Region-wise loan book..

Annexure

2
Earnings Presentation February 2017
 Repco Home Finance Limited

Q3FY17 Performance

Earnings Presentation February 2017

 Business Summary
Repco Home Finance Limited

Loans outstanding (Dec 31, 2016) Rs. 86,561 mn

Net worth (Dec 31, 2016) Rs. 10,361 mn

Average loan per unit Rs. 1.4 mn

Number of live accounts 73,492

Current Employee Strength 641

Gross NPA (Dec 31, 2016) 2.6%

Gross NPA (before regulatory forbearance) 4.2%

Net NPA (%) (Dec 31, 2016) 1.5%

Net NPA (before regulatory forbearance) 3.1%

4
Earnings Presentation February 2017
Q3FY17 performance
Repco Home Finance Limited
Figures in Rs million

Income from Operations Net Interest Income Net Profit

Q3FY17 2,642 907 464

17% 16% 20%

Q3FY16 2,254 780 386

Loan Book Sanctions Disbursements

Q3FY17 86,561 4,537 5,018

28% 1 6%
21%

Q3FY16 71,544 6,290 5,974

Earnings Presentation February 2017
9MFY17 performance
Repco Home Finance Limited
Figures in Rs million

Income from Operations Net Interest Income Net Profit

9MFY17 7,707 2,649 1,317

20% 21% 22%

9MFY16 6,410 2,183 1,079

Loan Book Sanctions Disbursements

9MFY17 86,561 21,782 19,779

21% 1% 1%

9MFY16 71,544 21,486 19,537

Earnings Presentation February 2017
 Loan book and customer mix
Repco Home Finance Limited
Figures in Rs million

Sanctions and disbursements Loan Book

21,486 21,782 90,000 86,561
19,537 19,779 80,000
18,000 71,544
70,000
13,000 60,000
50,000
8,000 40,000
30,000
3,000
9MFY16 9MFY17 20,000
Dec'16 Dec'17
Sanctions Disbursements

Loan book composition Mix of loan portfolio

100% 100%
19.0% 20.6%
80% 80%
57.8% 60.0%
60% 60%

40% 40% 81.0% 79.4%

20% 42.2% 40.0% 20%

0% 0%
Dec'16 Dec'17 Dec'16 Dec'17

Salaried Non Salaried Individual home loans Loans against property

7
Earnings Presentation February 2017
 Income and earnings growth
Repco Home Finance Limited
Figures in Rs million

Total Income Net interest income

8,000 7,722 3,000 2,649

7,000 6,420
2,500 2,183
6,000
5,000 2,000
4,000 1,500
3,000
1,000
2,000
1,000 500
-
-
9MFY16 9MFY17
9MFY16 9MFY17

Net profit Cost to income ratio

1,400 1,317 20.5%
1,200 20.0%
1,079
16.4%
1,000
15.0%
800
600 10.0%
400
200 5.0%

-
0.0%
9MFY16 9MFY17
9MFY16 9MFY17

8
Earnings Presentation February 2017
 Profitability ratios
Repco Home Finance Limited

Net interest margin Spread

3.5%
5.0% 4.4% 3.0% 3.0%
4.3%
3.0%
4.0%
2.5%
3.0% 2.0%
1.5%
2.0%
1.0%
1.0%
0.5%
0.0% 0.0%
9MFY16 9MFY17 9MFY16 9MFY17

Return on average net worth Return on average assets

(TTM) (TTM)
20.0% 18.1%
16.7% 2.5% 2.3% 2.2%
15.0% 2.0%

1.5%
10.0%
1.0%
5.0%
0.5%

0.0% 0.0%
9MFY16 9MFY17 9MFY16 9MFY17

9
Earnings Presentation February 2017
Asset quality & provisioning
Repco Home Finance Limited
Figures in Rs Million

Gross NPA Net NPA

4.00%
1,400 1,292 1.80%
2,500
1,200 1.51% 1.60%
2,000 3.00% 962
2.29% 2.65% 1,000 1.40%
1,500 800 1.36% 1.20%
2.00%
2,291 600 1.00%
1,000
1,639 1.00% 400 0.80%
500
200 0.60%
- 0.00%
- 0.40%
Dec'15 Dec'16
Dec'15 Dec'16
Gross NPA Gross NPA %
Net NPA Net NPA %

Provision coverage ratio

45.0% 43.6%
41.3%
40.0%

35.0%

30.0%

25.0%

20.0%
Dec'15 Dec'16

10
Earnings Presentation February 2017
 Asset quality
Repco Home Finance Limited

Movement in NPAs

3.5%

3.0% 2.6%
2.5%
2.3% 2.4%
2.5% 2.2% 2.2%
2.0% 2.0%
2.0% 1.8%
1.7%
1.5%
1.5% 1.3% 1.3%
1.6% 1.5%
1.0% 1.3% 1.3% 1.3%
1.2% 1.2%
1.4%
0.9%
0.5% 0.7% 0.8%
0.5% 0.5%
0.0%
Oct-14

Oct-15

Oct-16
Feb-14

Feb-15

Feb-16
Jun-14

Jun-15

Jun-16
Dec-13

Dec-14

Dec-15

Dec-16
Apr-14

Apr-15

Apr-16
Aug-14

Aug-15

Aug-16
Gross NPA Net NPA

11
Earnings Presentation February 2017
 Mix/Product-wise asset quality
Repco Home Finance Limited
Figures in Rs million
4.0%
3.6%
3.5%
3.0% 3.1% Product / Mix GNPA
3.0% 2.6%
2.5% 2.3% 2.4% Housing Loan 1,521

2.0% LAP 770

1.5% 1.3% 1.3% 1.3% Overall 2,291

1.0% Salaried 440

0.5% Non-Salaried 1,851

0.0% Overall 2,291

Salaried Non-Salaried Overall

Dec'16 Dec'15 Sep'16

5.0%
4.5% 4.3%

4.0% 3.6% 3.7%

3.5%
3.0% 2.6%
2.5% 2.2% 2.3% 2.4%
2.0% 2.0%
2.0%
1.5%
1.0%
0.5%
0.0%
Housing Loan LAP Overall
Dec'16 Dec'15 Sep'16

12
Earnings Presentation February 2017
 Mix/Product-wise asset quality (before regulatory forbearance)
Repco Home Finance Limited
Figures in Rs million
6.0% 5.5%
GNPA before regulatory
5.0% Product / Mix
4.2% forbearance
4.0%
3.0% 3.1% Housing Loan 2,557
3.0%
2.4% 2.3% 2.4% LAP 1,113
2.0%
1.3% 1.3% Overall 3,670

1.0% Salaried 814

Non-Salaried 2,856
0.0%
Salaried Non-Salaried Overall Overall 3,670

7.0% Dec'16 Dec'15 Sep'16

6.2%
6.0%

5.0%
4.2%
4.0% 3.7% 3.6% 3.7%

3.0%
2.3% 2.4%
2.0% 2.0%
2.0%

1.0%

0.0%
Housing Loan LAP Overall
Dec'16 Dec'15 Sep'16

13
Earnings Presentation February 2017
 Diversified borrowing profile
Repco Home Finance Limited

Source (Rs mn) Dec'15 Dec'16 Change 100% 7% 3%

7% 11%
80%
National housing Bank
9,693 12,330 27%
60%
Repco Bank 63% 63%
4,979 4,905 -1%
40%
Commercial Banks
38,318 46,302 21%
20% 8% 7%
NCDs 16% 17%
4,000 7,850 96% 0%
CPs Dec'15 Dec'16
4,000 2,500 -38%
National housing Bank Repco Bank
Total Commercial Banks NCDs
60,991 73,887 21%
CPs

14
Earnings Presentation February 2017
 Repco Home Finance Limited

Geographic Presence

Earnings Presentation February 2017

Expanding footprint
Repco Home Finance Limited

Presence in 11 states and 1 Union Territory

with 121 branches and 32 satellite centres
Presence beyond South: branches in West
Bengal, Orissa, Maharashtra, Gujarat,
Madhya Pradesh and Jharkhand

Network Expansion
150 153
150 142

130 122
Strong presence 110
88 92
Significant presence 90
72
Recent expansion
70
54
50

30
FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M
FY17

16
Earnings Presentation February 2017
Region-wise loan book
Repco Home Finance Limited

Exposure

Others, 2.4% Andhra Key States Dec15 Dec16

Pradesh, Telangana, Andhra Pradesh 8.0% 7.2%
7.2% 3.7%
Gujarat, Telangana 3.4% 3.7%
2.2%
Gujarat 2.0% 2.2%
Karnataka,
12.3% Karnataka 12.5% 12.3%
Kerala 3.7% 3.8%

Tamil Nadu, Kerala, 3.8% Maharastra 5.6% 6.1%

62.4%
Tamil Nadu 62.5% 62.4%
Maharastra,
6.1% Others 2.3% 2.4%

100% 100%

Earnings Presentation February 2017 17

 Repco Home Finance Limited

Annexure

Earnings Presentation February 2017

Shareholding pattern
Repco Home Finance Limited

Outstanding shares 62.56 mn Major Non-Promoter Shareholders % shareholding

Franklin Templeton Mutual Fund 6.4%
Bodies Birla Sun Life AMC 6.1%
Individuals
Corporate
, 8.92% DSP Blackrock Mutual Fund 5.6%
s, 3.40%
Mutual
Parvest Equity India 3.9%
Funds,
23.47% Nomura India Investment Fund 3.5%
Foreign TVF Fund Ltd 2.6%
Portfolio
Investors, India Capital Fund Limited 2.2%
24.53% BNP Paribas Equity Fund 1.5%
Alliance Bernstein (Mauritius) Limited 1.5%
NRIs, SBI Mutual Fund 1.1%
Promoters,
0.94%
37.13%
Others,
1.61%

19
Earnings Presentation February 2017
 Profit and loss statement
Repco Home Finance Limited

YoY Q2 QOQ 9M 9M
(Rs. million) Q3 FY17 Q3 FY16 (%) FY17 (%) FY17 FY16 YoY (%)
Income:
Revenue from operations 2,642 2,254 17% 2,596 2% 7707 6410 20%
Other Income 13 1 1421% 1 939% 16 9 75%
Total Income 2,656 2,255 18% 2,597 2% 7,722 6,420 20%
Expenses:
Interest and other Financial Charges 1,682 1,411 19% 1,597 5% 4828 4027 20%
Employee benefit expense 104 96 9% 100 5% 302 315 -4%
Depreciation and amortization
expense 8 9 -15% 9 -11% 24 29 -17%
Other expenses 51 56 -8% 55 -7% 149 146 2%
Provision for Non-Performing Assets 88 65 34% 100 -12% 358 184 94%
Contingency Provisions against
Standard Assets 7 27 -75% 25 -74% 40 68 -41%
Bad-Debts Written Off 2 0 100% 2 -7% 5 1 893%
Total Expenses 1,941 1,664 17% 1,887 3% 5,706 4,769 20%
Profit before tax 714 591 21% 710 1% 2016 1651 22%
Tax expense:
Current tax 237 198 19% 244 -3% 705 555 27%
Deferred Tax 14 6 115% 9 53% -6 17 -134%
Net Profit/(Loss) 464 386 20% 457 2% 1,317 1,079 22%

Note Other income includes Rs. 12 mn dividend received from Repco Micro Finance in Q3FY17

20
Earnings Presentation February 2017
 Key metrics
Repco Home Finance Limited

Particulars Units 9MFY16 FY16 9MFY17

Outstanding Loan Book Rs. Mn 71,544 76,912 86,561
Sanctions Rs. Mn 21,486 30,828 21,782
Disbursements Rs. Mn 19,537 28,512 19,779
Income from Operations Rs. Mn 6,410 8,801 7,707
Net Interest Income Rs. Mn 2,183 3,039 2,649
PAT Rs. Mn 1,079 1,501 1,317
Networth Rs. Mn 8,892 9,162 10,361
Yield on assets % 12.6 12.4 12.2
Cost of funds % 9.6 9.4 9.2
Spread % 3.0 3.0 3.0
Gross NPA % 2.29 1.31 2.65
Net NPA % 1.36 0.48 1.51
Loan Book Composition:
Non-Salaried % 42.2 58.8 60.0
Salaried % 57.8 41.2 40.0
Home Loans % 81.0 80.2 79.4
Loans against property % 19.0 19.8 20.6

Note Equity has been adjusted for DTA

21
Earnings Presentation February 2017
 Key metrics
Repco Home Finance Limited

Particulars Units Q3FY16 Q2FY17 Q3FY17

Sanctions Rs. Mn 6,290 10,461 4,537
Disbursements Rs. Mn 5,974 8,764 5,018
Net Interest Income Rs. Mn 780 902 907
PAT Rs. Mn 386 457 464
NIM % 4.5 4.4 4.2
Yield on assets % 12.5 12.2 12.1
Cost of funds % 9.4 9.2 9.2
Spread % 3.1 3.0 2.9
ROAA % 2.2 2.2 2.2
ROAE % 17.1 18.8 18.7

22
Earnings Presentation February 2017
 Repco Home Finance Limited
For any Investor Relations queries, please contact:
V. Raghu, Executive Director/
Bala , 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 statements that may be forward looking including those relating to general business plans and strategy of Repco
Home Finance Ltd., (RHFL), its future outlook and growth prospects. The actual results may differ materially from these forward looking statements due
to a number of risks and uncertainties which could include future changes or developments in RHFL, the competitive environment, the companys
ability to implement its strategies and initiatives, respond to technological changes as well as sociopolitical, economic and regulatory conditions in
India.

All financial data in this presentation is obtained from the audited financial statements and the various ratios are calculated based on these data. This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation or a solicitation of any offer, to
purchase or sell, any shares of RHFL and should not be considered or construed in any manner whatsoever as a recommendation that any person
should subscribe for or purchase any of RHFLs shares. None of the projection, expectations, estimates or prospects in this presentation should be
construed as a forecast implying any indicative assurance or guarantee of future performance, nor that the assumptions on which such future
projects, expectations, estimates or prospects have been prepared are complete or comprehensive .

This presentation is for information purposes only. This document and its contents should not forwarded or delivered or transmitted in any manner to
any person other than its intended recipients, and should not be reproduced in any manner whatsoever. The recipients further represents and
warrants that : (i) It is lawfully able to receive this presentation under the laws of the jurisdiction in which it is located, and / or any other applicable
laws, (ii) It is not a U.S. person, (iii) This presentation is furnished to it, and has been received, outside of the United States, and (iv) It will not reproduce,
publish, disclose, redistribute or transmit this presentation, directly or indirectly, into the United States or to any U.S. person either within or outside of
recipients organisation.

23
Earnings Presentation February 2017