Q1 FY22 Investor Update LICHFL: a Journey of 32 Years…
Total Page:16
File Type:pdf, Size:1020Kb
Q1 FY22 Investor Update LICHFL: A Journey of 32 Years… • Best HFC by 2016 ABP News 2015 2014 •Business Today- •Crosses Rs 1 Best CEO Award lakh cr in portfolio • Business World - •Best Housing Most Respected Co Finance Co. by Award •Crossed Rs. 1000 cr profit & BFSI Awards •Outlook Money-Best Rs 75,000 Cr assets • Best data quality HFC in HFC •Best HFC by ABP 2013 by CIBIL News •Best Data Quality by 2012 • Best HFC by CNBC TV 18 CIBIL • Construction Industry Award •Asia Pacific Entrepreneurship 2011 Crossed Rs. 50,000 Cr loan portfolio Award •Power Brands 2009 Crossed Rs. 500 crs profit Awards by Franchise India 2004 GDR Issue 2017 2002 AAA Rating 2019 •Voted as the ‘Brand of the •Crosses 150,000 cr in assets 1994 IPO Decade 2019’ by BARC Asia •Outlook Money-Best HFC •Crossed 2,00,000 Cr in •Business Today BFSI Best 1989 Incorporated Assets CEO •NSE for Best Issuer on EBP •NSE for highest Debt Issuance 2 Executive Summary – Q1/FY22 . Q1 FY22 PAT at Rs 153.44 cr as against Rs 817.48 cr . Q1 FY22 Total Revenue from operations Rs. 4857.11 cr as against Rs. 5003.71 cr . Outstanding Loan portfolio up by 11 % to Rs. 232548 cr . Individual Loan Portfolio up by 11% to Rs. 216947 cr . Individual Home Loan Portfolio up by 13% to Rs. 182055 Cr . Q1FY22 Disbursements Rs. 8652 cr against Rs. 3560 cr , growth of 143%. Individual Home Loan Disbursements Rs. 7650 cr against Rs. 3034 cr, growth of 152% . Net Interest Income Rs. 1275.31 cr as against 1220.61 cr as on 30.06.2021, growth of 4.5% . Net Interest Margins 2.20 % for Q1 FY22 as against 2.32 % for Q1FY21 . Stage 3 EAD at 5.93% as against 4.12% as on 31.03.2021 3 Impact of Covid 19 • During the quarter, several states were under lockdowns and restrictions due to second wave of Covid-19, which has impacted business activities. • Collection efficiency for June 2021 stood at 98%. Total ECL provision stood at Rs. 4727.02 Cr as on 30.06.2021. Covid-19 related provision stood at Rs 657.75 Cr as on 30.06.2021. 4 Update – last 5 years Disbursement (Rs. Cr) CAGR 7% Loan Portfolio (Rs.cr) CAGR 14% 53908 60000 49378 55223 250000 210578 232003 46936 194646 50000 41541 167467 200000 145568 40000 150000 30000 100000 20000 10000 50000 0 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Income (Rs. cr) CAGR 9% Profit After Tax (Rs. cr) CAGR 9% 19670 19848 20000 17365 3000 2431 2734 14080 14841 2500 2401 1931 2003 2000 10000 1500 1000 500 0 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 5 Update – last 5 years Gross & Net NPAs # Total Provisions* (Rs cr) 5% 4500 3971 4.01% 4000 4% Gross 3500 2.86% 2612 3% 2.70% Net 3000 1.99% 2500 1659 2% 1.54% 2000 1038 1249 0.78% 1.08% 1500 1% 0.43% 0.43% 1000 0.14% 500 0% 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Operating Expense to Total Income Profit per employee (Rs. lacs) 105.34 105.28 112.66 95.22 100.41 100 4.34% 5% 3.53% 50 2.98% 2.74% 3.14% 0 0% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 # As per IGAAP 6 * For 2019, 2020 & 2021 ECL Provisions of Stage 1,2 and 3 Update – last 5 years EPS (Rs) (Rs 2/- pd up) Book Value (Rs)(Rs 2/- pd up) 60 54.18 48.16 47.59 402.35 50 38.26 39.68 400 322.19 360.47 40 219.49 251.49 30 200 20 10 0 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Return on Avg Equity Return on Avg Loan Assets 20% 19.00% 17.00% 2% 16.00% 14.00% 14.00% 1.43% 1.28% 1.34% 1.18% 1.24% 10% 1% 0% 0% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 7 Large geographic presence • 9 Regional Offices Corporate office • 24 Back Offices Regional offices Back offices Amritsar Jalandhar • 282 Marketing Offices Shimla Operating offices Ludhiana Ambala Chandigarh Bhatinda • Rep offices in Dubai & Kuwait Patiala Dehradun Hisar Noida Karnal Meerut Haldwani Gurgaon New Delhi • Coverage of more than 450 centres Faridabad Ghaziabad Gangtok Bareilly Bikaner Siliguri Jorhat Jaipur Agra Gorakhpur Guwahati • 2421 Employees Jodhpur Kota Ajmer Lucknow Malda Udaipur Kanpur Patna Silchar Gwalior Varanasi Dhanbad Behrampur Ahmedabad Allahabad Ranchi Durgapur Gandhidham Bhopal Jamshedpur Kolkata Widening footprint…improved efficiencies Rajkot Vadodara Indore Jabalpur Rourkela Bilaspur Surat Jalgaon Nagpur Raipur Vapi Durg-Bhilai Cuttack No of No of Back No of No of Lon Nallasopara Nasik Year Aurangabad Bhubaneshwar Kalyan Thane Warangal Marketing offices Regional Employees Portfolio Jogeshwari Mumbai Visakapatnam Pune Hyderabad Rajahmundry Vashi Offices Offices Rs cr Kolhapur Gulburga Vijayawada Satara Kurnool Belgaum Kakinada Anantapur Guntur Panjim Bellary Hubli Nellore 2008 125 14 6 985 21936 Tirupati Bengaluru Mangalore Hosur Chennai Mysore Vellore Hassan 2013 194 16 7 1446 77812 Salem Kannur Thrissur Coimbatore Erode Kozhikode Tiruchirapalli 2020 282 24 9 2392 210578 Palghat Pondicherry Ernakulam Thanjavur Kottayam Madurai Thiruvananthapuram Tirumangalam Kollam 2021 282 24 9 2427 232003 Nagercoil 8 Distribution Network HOME LOAN AGENTS (HLAs) (Agents of LIC) DIRECT SALES AGENTS (DSAs) (Small Firms/Companies etc) CUSTOMER RELATIONS 282 ASSOCIATES (CRAs) (Individual Agents of the Company) Marketing Offices 47 branches of LICHFL Financial Services (100% subsidiary of LICHFL) DIRECT MARKETING EXECUTIVES New Marketing Channel (DME) (Captive Marketing Channel) *Online Loan approvals during Q1 FY22 were Rs.3493 Cr 9 Origination Pattern & Average Ticket Size Customer Type (No.) Originations by source 9% 10% 2% 9% 4% 58% 91% 17% Salaried Self Employed HLA DSA CRA DME DIRECT LICHFLFSL Incremental Ticket Size Top 7 cities & Others (Rs lacs) ₹ 25.0 44% ₹ 24.0 56% 85 197 Offices ₹ 23.0 Offices ₹ 22.0 ₹ 21.0 ₹ 20.0 Q1FY21 Q1FY22 Top 7 cities Others 10 Loan Book Composition Developer Loans Developer 6.7% Loans Retail LAP/ 7% LRD/etc Retail LAP/ 15% other 16.4% Retail Home Retail Home Loans Loans 78.3% 76.6% 30.06.2021 30.06.2020 O/s Portfolio Rs. 232548 cr O/s Portfolio Rs. 209817 cr 11 Individual Loans – Portfolio Stats Pure Floating Rate Loans Loan To Value Ratio To Outstanding Portfolio On Incremental Sanctions As of FY20 92% For FY20 49% As of FY21 97% For FY21 48% As of Q1FY22 97% For Q1FY22 52% Prepayment Installment to Net Income Ratio Lump Sum/ opening book On Incremental Sanctions For FY20 10.1% For FY20 31.00% For FY21 10.8% For FY21 29.00% For Q1FY22 8.6% For Q1FY22 30.00% 12 Financial Highlights Q1 FY 2022 Q1 FY 2021 Return on Average Equity (%) 3.04% 17.58% Return on Average Assets (%) 0.3% 1.6% Earnings per share (on Rs 2 pd up) 3.04 16.20 Capital Adequacy Ratio March 2021 March 2020 Tier I 13.87 12.19 Tier II 1.40 1.70 Total 15.28 13.89 13 Executive Summary-Q1/FY22 Var Q1 Q1 FY22 FY21 (Rs. Cr) (Rs. Cr) Revenue from Operations -2.9% 4857.11 5003.71 Finance cost -5.7% 3549.97 3764.47 Net Interest Income 4.5% 1275.31 1220.61 Impairment on Financial Instruments and Net Loss on De-recognition of Financial Instruments - 830.41 56.45 Profit before Tax -81.0% 192.93 1017.67 Tax Expense -80.3% 39.49 200.19 Net Profit -81.2% 153.44 817.48 14 Executive Summary-Q1/FY22 Var Q1FY22 Q1FY21 Disbursements Individual 147.4% 8415 3402 Project 49.1% 237 159 Total 143.0% 8652 3560 Outstanding Portfolio Individual 11.2% 216947 195176 Project 6.5% 15601 14641 Total 10.8% 232548 209817 Net Interest Margins(%) 2.20% 2.32% Weighted average cost of funds 6.88% 7.87% Yield on advances annualised 8.80% 10.15% Spreads 1.92% 2.28% Liability Profile as on 30.6.2021 Source Wtd Outstanding Borrowings – Rs. 206391 cr Avg Deposits 9% CP Cost 4% (%) Sub Debt Bank 1% 26% Banks & Institutions 5.82% NHB National Housing Bank 5.70% 5% Non Convertible Debenture 7.76% Upper Tier II 7.30% Commercial Paper 4.15% Deposits 6.49% NCD Total 6.88% 55% During Q1 FY22, Incremental Cost of funds was 5.03% 16 Change in Liability Mix- last 4 yrs 100% Bank funding has reduced from 90% Others 32% in FY12 to 80% 25% in FY14. 70% Retail DepositsDeposit 60% increased to 2.2% 50% NHB 40% 30% Bank 20% 10% NCD 0% Q1FY22 FY21 FY20 FY19 FY18 6.88% 6.93% 8.08% 8.49% 8.31% Wtd. Avg. cost of Funds 17 Yield & Cost of Funds on portfolio 12.00% 0.028 10.15% 0.026 10.00% 8.80% 0.024 7.87% 8.00% 0.022 6.88% 0.02 6.00% 0.018 4.00% 0.016 0.014 2.00% 0.012 0.00% 0.01 Q1 FY21 Q1 FY22 Yield on Advances on 10.15% 8.80% Portfolio Wtd Avg cost of funds on 7.87% 6.88% Total Borrowed Funds 18 NIMs 3.00% 2.41% 2.50% 2.32% 2.20% 2.00% 1.50% 1.00% Q1FY20 Q1FY21 Q1FY22 19 Classification of Assets Exposure At Default % June-21 June-20 Stage 1 88.69% 93.20% Stage 2 5.38% 3.97% Stage 3 5.93% 2.83% Total 100% 100% ECL Provision June-21 June-20 Stage 1 Rs.