Q3 FY20 Investor Update

1989

1994

2002

2004

2009

2011

2012

2013

Incorporated

IPO

AAA Rating

GDR Issue

Crossed Rs. 500 crs profit

Crossed Rs. 50,000 Cr loan portfolio

• Best HFC by CNBC TV 18

• Construction Industry Award

•Crossed Rs. 1000 cr profit &

Rs 75,000 Cr assets

20152014

• Best HFC by

ABP News

•Crosses Rs 1

lakh cr in portfolio

•Best Housing

Finance Co. by

BFSI Awards

• Best data quality

in HFC

by CIBIL

LICHFL: A Journey of 30 Years…

•Business Today-

Best CEO Award

• Business World -

Most Respected Co

Award

•Outlook Money-Best

HFC

•Best HFC by ABP

News

•Best Data Quality by

CIBIL

•Asia Pacific

Entrepreneurship

Award

•Power Brands

Awards by Franchise

India

2016

2017

•Crosses 150,000 cr in assets

•Outlook Money-Best HFC

•Business Today BFSI Best

CEO

•NSE for highest Debt

Issuance

2

•Voted as the ‘Brand of the

Decade 2019’ by BARC Asia

•Crossed 2,00,000 Cr in

Assets

•NSE for Best Issuer on EBP

2019

3

Q3 FY20 PAT at Rs. 597.53 cr as against Rs 596.31 cr for Q3FY19

Q3 FY20 Revenue from operations up by 13% to Rs 4996.46 cr

Outstanding Loan portfolio up by 13% to Rs.205692 cr

Individual Loan Portfolio up by 13% to Rs 192459 cr

Individual Home Loan Disbursements Rs 10655 cr against Rs 9170 cr, up by 16%

Q3FY20 Total Disbursements Rs 13177 cr against Rs 12778 cr

Net Interest Income Rs 1227.93 cr against Rs 1042.53 cr, up by 18 %

Net Interest Margins 2.42 % for Q3 FY20 as against 2.33% for Q3FY19

Stage 3 EAD at 2.73 % as against 2.38% as on 30.9.2019

Executive Summary – Q3/FY20

4

Disbursement (Rs. Cr) CAGR 16%

Profit After Tax (Rs. cr) CAGR 15%Income (Rs. cr) CAGR 13%

Loan Portfolio (Rs.cr) CAGR 16%

Update – last 5 years

5

Gross & Net NPAs

Operating Expense to Total Income

Total Provisions* (Rs cr)

Profit per employee (Rs. lacs)

* Provisions Including Provisions on Std. Assets

Update – last 5 years

6

EPS (Rs) (Rs 2/- pd up)

Return on Avg Equity

Book Value (Rs)(Rs 2/- pd up)

Return on Avg Loan Assets

Update – last 5 years

• 9 Regional Offices

• 24 Back Offices

• 282 Marketing Offices

• Rep offices in Dubai & Kuwait

• Coverage of more than 450 centres

• 2265 Employees

Back offices

Operating offices

Regional offices

Corporate office

Nagercoil

ThiruvananthapuramKottayam

Ernakulam

Kozhikode

Thrissur

Tirumangalam

Madurai

Thanjavur

Pondicherry

Tiruchirapalli

Coimbatore

Salem

Vellore

ChennaiHosurMysore

Mangalore

Bengaluru

Panjim

Vashi

Mumbai

NelloreHubliTirupati

Bellary

Anantapur

Kurnool

Guntur

Kakinada

Vijayawada

Hyderabad Rajahmundry

Visakapatnam

Warangal

Bhubaneshwar

Kolkata

Silchar

Guwahati

Siliguri

Gangtok

Patna

ShimlaJalandharAmritsar

LudhianaChandigarh

Dehradun

HaldwaniKarnal

Bareilly

Ghaziabad

New Delhi

AgraLucknow

Kanpur

JaipurAjmer

Gwalior

Bikaner

Jodhpur

Rajkot

Udaipur

Ahmedabad

Vadodara Indore

Bhopal

Allahabad

Jabalpur

Varanasi

Ranchi

Jamshedpur

RourkelaBilaspur

RaipurNagpurJalgaonSurat

Vapi

AurangabadNasik

Kalyan

ThaneJogeshwari

Pune

Kolhapur

Belgaum

Gulburga

Nallasopara

Kota

Hassan

Erode

Kannur

Kollam

Palghat

Gandhidham

Satara

Durg-Bhilai

Gorakhpur

Meerut

Behrampur

Cuttack

Dhanbad

Durgapur

Jorhat

Malda

GurgaonFaridabad

Noida

AmbalaBhatinda

HisarPatiala

Large geographic presence

Year No of

Marketing

Offices

No of Back

offices

No of

Regional

Offices

No of

Employees

Lon

Portfolio

Rs cr

2003 105 - 6 870 7772

2008 125 14 6 985 21936

2013 194 16 7 1446 77812

2019 273 23 9 2309 194646

Widening footprint…improved efficiencies

7

HOME LOAN AGENTS (HLAs)

(Agents of LIC)

DIRECT SALES AGENTS (DSAs)

(Small Firms/Companies etc)

CUSTOMER RELATIONS

ASSOCIATES (CRAs)

(Individual Agents of the Company)

282Marketing Offices

44 branches of

LICHFL Financial Services(100% subsidiary of LICHFL)

Distribution Network

8

₹ 20.0

₹ 21.0

₹ 22.0

₹ 23.0

₹ 24.0

₹ 25.0

9MFY19 9MFY20

Incremental Ticket Size(Rs lacs)

9

Origination Pattern &

Average Ticket Size

10

Loan Book Composition

O/s Portfolio Rs. 205692 cr

31.12.2019

O/s Portfolio Rs. 200849 cr

30.09.2019

11

Installment to Net Income RatioOn Incremental Sanctions

For FY 17 32.00%

For FY18 31.00%

For FY19 32.00%

For Q3FY20 31.40%

Loan To Value RatioOn Incremental Sanctions

For FY 17 45%

For FY18 44%

For FY19 46%

For Q3FY20 49%

Pure Floating Rate LoansTo Outstanding Portfolio

As of FY 17 70%

As of FY18 74%

As of FY19 93%

As of Q3FY20 91%

PrepaymentLump Sum/ opening book

For FY 17 10.9%

For FY18 11.0%

For FY19 10.2%

As of Q3FY20 10.0%

Individual Loans – Portfolio Stats

12

9M FY2020 9M FY 2019

Return on Average Equity (%) 15% 17%

Return on Average Assets (%) 1.32% 1.33%

Earnings per share (on Rs 2 pd up) 39.24 34.43

Capital Adequacy Ratio

Tier I

Tier II

Total

Sept 2019

12.49

1.88

14.37

Sept 2018

12.60

2.22

14.82

Financial Highlights- Q3FY20

13

Executive Summary-Q3/9MFY20

Var Q3

FY20

Q3

FY19

Var 9M

FY20

9M

FY19

Interest Income on Individual Loans 12% 4542.58 4060.48 15% 13445.33 11701.70

Interest Income on Project Loans 28% 400.57 311.93 36% 1169.24 861.39

Total 13% 4943.15 4372.41 16% 14614.57 12563.09

Processing Fees & Other Fees 17.79 9.92 34.38 27.38

Other Income 35.52 57.10 133.76 116.11

Gross Income 13% 4996.46 4439.43 16% 14782.71 12706.59

Interest Expenses 12% 3715.22 3329.88 16% 11019.63 9493.45

Net Interest Income 18% 1227.93 1042.53 17% 3594.94 3069.65

Salary & Other Establishment Exp. 138.27 117.48 387.83 306.98

Net loss on derecognition of Financial

Instruments under amortised cost category

6.96 135.61 7.51 265.63

Impairment of Financial Instruments 390.68 (3.14) 925.48 247.21

Profit before Tax -13% 745.32 859.59 2% 2442.27 2393.31

Income Tax Provision including Deferred Tax 147.79 263.28 461.86 655.92

Net Profit 0.20% 597.53 596.31 14% 1980.41 1737.40

Executive Summary-Q3/9MFY20

Var Q3

FY20

Q3

FY19

Var 9M

FY20

9M

FY19

Disbursements

Individual 6% 12246 11540 6% 33406 31569

Project -25% 931 1238 -57% 2205 5097

Total 3% 13177 12778 -3% 35611 36666

Outstanding Portfolio

Individual 13% 192459 170658

Project 21% 13233 10895

Total 13% 205692 181553

Weighted average cost of funds 8.22% 8.45%

Yield on advances annualised 10.25% 10.45%

Spreads 2.03% 2.00%

15

Outstanding Borrowings – Rs. 184966 cr

Source Wtd

Avg

Cost

(%)

Banks & Institutions 8.10%

Non Convertible Debenture 8.35%

National Housing Bank 7.67%

Sub. Bonds & Upper Tier II 8.89%

Commercial Paper 6.88%

Deposits 8.13%

Total 8.22%

as on 31.12.2019

Liability Profile

During Q3FY20, Incremental Borrowings were @ 7.87%

16

Change in Liability Mix- last 3 yrs

Wtd. Avg. cost

of Funds

Bank funding has

reduced from

32% in FY12 to

25% in FY14.

Retail Deposits

increased to 2.2%

8.22% 8.36% 8.46% 8.49% 8.31% 8.59%

17

Yield & Cost of Funds on portfolio

18

NIMs

19

Classification of Assets

Exposure At Default % December-19 December-18

Stage 1 91.55% 93.82%

Stage 2 5.72% 4.93%

Stage 3 2.73% 1.25%

Total 100% 100%

ECL Provision December-19 December-18

Stage 1& Stage 2 Rs. 33.13 cr Rs. 6.67 cr

Stage 3 Rs.2551.59 cr Rs. 1548.66 cr

20

DISCLAIMER

This presentation is made purely for information. We have attempted to provide relevantinformation which we believe will help in knowing the Company. The users may use their ownjudgment and are advised to make their own calculations before deciding on any matter basedon the information given herein.

While every care is taken to verify the accuracy of the information given in this presentation,neither the Company nor its officials would in any way be liable for any action taken or nottaken by the viewers or the users of this presentation or for any claims, losses etc.

Thank you