SRG HOUSING FINANCE LTD

.Always wilh you

TM NO.: 2339164

SRG HOUSING FINANCE LIMITEOCORPORATE OFFICE: 1046, 10th Floor, Hubtown Solaris, N. 5. Phadke Marg,

Vijay Nagar, Andheri (E}, MUMBAI- 400 069, Maharashtra (INDIA)

CIN NO. : L65922RJ1999PLC015440 E-MAIL: connect@srggroup.net

Ref: SCRIP ID- SRGHFL,SCRIP CODE-534680,ISIN NO - INE559N01010

Date: 19.12.2018To,The GM (Listing)BSE Ltd.

Phiroze Jeejeebhoy Towers,Dalal Street,Mumbai- 400001

Respected Sir,

Subject: Corporate Presentation

With reference to the above mentioned kind! f ctCompany.

' y in the attached Corporate Presentation of the

Kindly take the same on record and acknowledge the receipt.

Thanking You,

With Regards,

For SRG Housing Finance Limited

?;_s?'CompanySecretaryM.No.: A40754

REGO. OFFICE: 321, S.M. LODHA COMPLEX, SHASTRI CIRCLE, UDAIPUR 313001 (RAJASTHAN)PHONE: 0294-2561882, 2412609, E-MAIL: srghousing@gmail.com WEBSITE: www.srahousing.com

INVESTOR PRESENTATION

NOVEMBER 2018

SRG HOUSING FINANCE LIMITED

Disclaimer

2

The information contained in this presentation is only current as of its date. Please note that the past performance of the company is not and should not be considered as, indicative of future results.

This presentation may contain certain statements of future expectations and other forward-looking statements, including those relating to our general business plans and strategy, our future financial condition and growth prospects and future developments in our sector and our competitive and regulatory environment. In addition to statements which are forward looking by reason of context, the words ‘may’, ‘will’, ‘should’, ‘expects’, ‘plans’, ‘intends’, ‘anticipates’, ‘believes’, ‘estimates’, ‘predicts’, ‘potential’ or ‘continue’ and similar expressions identify forward looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results, performances or events to differ materially from the results contemplated by the relevant forward looking statement. The factors which may affect the results contemplated by the forward looking statements could include, amongst others, future changes or developments in (i) the Company’s business, (ii) the Company’s competitive environment, and (iii) political, economic, legal and social conditions in India.

The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates.

The information contained herein is subject to change without notice and past performance is not indicative of future results. Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation may not be copied and disseminated in any manner.

Index

3

Overview 4

Business Model 7

Industry Dynamics 11

Outlook 21

Financial Statements 24

Annexure 27

Overview

5

Business Overview

• Incorporated in 1999, SRG HOUSING FINANCE LIMITED (SRG) is a NHB registered housing finance company engaged in Individual

Housing Loan and Loan Against Property

• Focus on providing loans in rural and semi-urban areas and has operations in 4 major states of India

• Promoters and senior management have more two decades of experience in offering financing in rural areas • Holds a distinction of first company in India to get migrated from BSE SME platform to BSE main board

Key facts and figures

Business Mix (%) Customer Profile (%) Loan Mix (%)

70.71

25.50

3.79

Individual Home Loans (%) LAP (%) Project Loans (%)

80.58

19.42

Self Employed (%) Salaried (%)

82.46

17.54

Rural Urban

NO. OF HOUSEHOLDS SERVED

~5000

BRANCHES

32

LOAN BOOK

Rs. 247.96 CRORES

NO. OF EMPLOYEES

169

AVERAGE TENURE AVERAGE TICKET SIZE

Rs.5.75 lakhs 7.00 years

Note: SRG’s erstwhile name VITALISE FINLEASE PRIVATE LIMITED; All numbers as on 30th September 2018

6

Our Business Presence

RAJASTHAN (19)

Banswara Bhilwara Jaipur

Sagwara Aspur Fatehnagar

Salumber Ajmer Chittogarh

Rajsamand Kota Sumerpur

Dungarpur Sirohi Bijainagar

Bhinder Jodhpur Phalodi

Udaipur

MADHYA PRADESH (6)

GUJARAT (6)

MAHARASHTRA (1)

Mandsaur Ratlam Manasa

Neemuch Shamgarh Ujjain

Ahemdabad Surat Vadodara

Palanpur Mehsana Nadiad

Mumbai

Year Branches (Nos.)

FY14 9

FY15 9

FY16 15

FY17 19

FY18 29

FY19* 32

Note: 5 new branches are coming soon in the state of Madhya Pradesh and Rajasthan

Journey till date

Crossed an Asset Under Management (AUM) of Rs.200.28

Crores

2018

Rating BBB in March 2018 by brickwork

2018

2017

1st private placement post listing in March 2017 and 1st private placement of NCD in

August 2017

2016

ISO 9001:2008 Certified Company for Quality Management

system of Loan Process

2016

Sanctioned and Refinanced From

National Housing Bank twice in the same year

2015

Notified by ministry of finance to be

Treated as “Financial Institution” under SARFAESI Act 2002

2015

Migrated to BSE main board being India’s 1st

Company to get migrated

2012

Listed on BSE SME Platform being the 1st Company in Rajasthan

to be listed on SME Platform

2002-2004

Got license from NHB being the 1st company

In Rajasthan to get NHB license. Converted into public company

1999-2000

Incorporate as Vitalise Finlease Pvt. Ltd and subsequently changed the name to SRG Housing Finance Ltd.

SRG HOUSING FINANCE LIMITED IS: FIRST COMPANY IN RAJASTHAN TO GET REGISTERED WITH NATIONAL HOUSING BANK FIRST COMPANY IN RAJASTHAN TO GET LISTED ON BSE SME PLATFORM FIRST COMPANY IN INDIA TO GET MIGRATED FROM BSE SME PLATFORM TO BSE MAIN BOARD

Business Model

5 days 3 days

9

Business Model

Sourcing Credit

Appraisal Sanction Disbursal Collection and

recovery mechanism

Loan offerings

Housing Loan - Individuals

LAP

Housing Loans - Builders

Loan Mix (%)

70.71

25.50

3.79

LTV (%)

37.79

42.06

27.09

Avg Ticket Size (Rs. in Lakhs)

4.89

9.34

185.00

Loan account flow

Borrowing Mix BANKS (68.22%)

FI’s

(19.90%)

NCD

(9.67%)

NHB (2.21%)

Risk management

Note: All numbers as on 30th September 2018

10

Key Financial Highlights

7.57

200.28

FY12

FY18

4.05

145.96

FY12

FY18

0.78

18.12

FY12

FY18

0.44

13.19

FY12

FY18

4.11

142.82

FY12

FY18

0.32

9.62

FY12

FY18

Loan Disbursement

CAGR 72.62%

CAGR 80.64%

CAGR 76.25%

CAGR 81.75%

CAGR 68.92%

CAGR 76.33%

Consistent growth trajectory

Loan Portfolio

Profit Before Tax

Net Interest Income - NII

Loan Approvals

Profit After Tax

Note: Listed on BSE since 2012. All figures in Rs. Crores

Industry Dynamics

12

81 78 75

73 70 66

1967 1977 1987 1997 2007 2017

India’s favourable demographic profile

51,416

60,652 69,430

77,805

86,767

95,223

103,924

113,863

125,089

2009 2010 2011 2012 2013 2014 2015 2016 2017

CAGR 11.8%

519

650

817

997

1,180

1,339

1967 1977 1987 1997 2007 2017

CAGR 1.9%

CAGR 1.4%

India’s population (In million)

Steady growth in population on a large base

India’s Rural population (%)

Rural share still dominant in the total population Rising per-capita disposable income leads to higher demand for goods & services

Per-capita Disposable Income (in Rs.)

Source: World Bank, Census

13

Latent demand for housing finance to result in growth

Rural house condition (%)

86.7

78.7

61.3

48.4 47.5

24.7

16.2 10.9

UnitedKingdom

UnitedStates

Spain China Ireland Brazil Russia India

~11 mn dilapidated houses (7%) suggests strong demand for reconstruction

46

48

7

Good Livable Dilapidated

5.5

5.3

4.9

1991 2001 2011

Mortgage penetration (% of GDP)

Lower mortgage penetration (% of GDP) vis-à-vis developed and developing nations suggests room for expansion

Average family size of Indian households

Nuclear family concept leads to higher demand for houses

Source: World Bank, BIS

Source: PNB, NHB,RBI 14

Expected growth in HFC’S loan portfolio and market share

57 56

56 55 54 53

43 44 44 45 46 47

FY15 FY16 FY17 FY18E FY19E FY20E

Banks (%) HFC's(%)

HFC’s loan portfolio growth (%) Market share in housing loans (%)

6.3 7.4

8.8 10.4

12.4 14.4

16.8

19.9

23.4

27.7

32.6

FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E FY21E FY22E

Strong deal origination, customer centricity and diverse channels of sourcing to drive higher growth over the next five years

Faster turnaround time on loans and end to end solution by HFC’s has led to increase in market share

+18% CAGR 18-20% CAGR

Opportunity Size in Rural India

Rs. 30,57,000 crores

15

Rural housing shortage presents big opportunity for HFC’s players

Housing Credit Opportunity based on Shortfall Rural

Households living in non-serviceable and temporary house

2.02

Households living in obsolescent houses

0.75

Households living in congested houses and requiring new houses

1.13

Households that are homeless 0.42

Additional shortages (from 2012 to 2017)

0.05

Total Housing Shortage (In Crores) 4.37

Average Loan per unit in Rural India (Lakhs)*

7.0

Opportunity Size in Rural India (Rs. Lakh Crores)

30.57

Source: www.ras.org.in, Assumption, RBI

Shortage of Houses in Rural

SRG

Lower mortgage penetration at state level

Rs.247.96 crores

14 13

10

8 8

10 10

7 6 6

State-wise mortgage penetration(%)

SRG Operations Opportunity lies ahead for SRG given the huge

addressable market

16

Drivers of growth

Limited availability of housing finance for low-income customers

Housing credit % to GDP still lower

Tax incentives for individuals

Growing demand of small ticket housing loans from

EWS and LIG segments*

Pradhan Mantri Awas Yojna (PMAY) initiatives

Urbanization, growth of nuclear

families, rising incomes etc.

* EWS - Economically Weaker Sections | LIG - Low Income Group

17

Key business strategies

Increasing the scale of operations

Expanding Resource Base Low Loan-to-Value (LTV)

Company is expanding its Branch Network in North West Region of the Country. Focus areas of the company will be Tier II & Tier III Cities of Rajasthan, Maharashtra, Gujarat and Madhya Pradesh.

The Company has received refinance from National Housing Bank under its Refinance Scheme. Further the Company has already been sanctioned loans from many banks. Company is also planning to raise funds by way of various capital market instruments.

The Company has been able to achieve and maintain a low average Loan-to-Value (LTV) of 38.82% (Q2FY19) on back of its strategy to lend towards construction of individual units only excluding land acquisition cost

Technology

The Company has been successful in deploying the best in class technology which has enabled it to lower its turnaround time for disbursement of loans.

18

Strong and consistent performance

11.90 11.77 11.70 11.50 11.25 11.18 11.00 11.00

23.00 22.78 22.75 22.75 22.75 22.70 22.50 22.43

11.10 11.01 11.05 11.25 11.50 11.52 11.50 11.43

4

8

12

4

19

34

Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19

Borrowing Cost (%) Lending Rate (%) Spread (%) (RHS)

66.13 81.83

100.04 125.04

155.07

200.28 224.49

247.96

2.75 2.68 2.84

3.24 3.26 3.14

2.87 2.92

0

1

1

2

2

3

3

4

0

125

250

375

Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19

AUM (Crs) Net Interest Margin (%)

65.37

58.03

38.73

44.29

52.29

35.30 34.47 34.83

Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19

Cost to income Ratio (%)

1.10

1.57

1.32 1.27 1.27 1.50

1.76 1.72

0.57

1.21

0.62 0.69 0.64 0.50 0.50 0.47

Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19

Gross NPA (% AUM) Net NPA (% AUM)

Spread remain higher with lower cost

Operational Efficiencies in Check

Growth in AUM and rise in NIM

Prudent Risk Management Policies Aids in Lower NPA”S

19

Sound financial position

12.9 13.15 13.15 11.61 10.56

23.67 23.15 23.23 22.58 22.08

10.77 10.00 10.08

10.97 11.52

4

8

12

4

19

34

FY14 FY15 FY16 FY17 FY18

Borrowing Cost (%) Lending Rate (%) Spread (%) (RHS)

26.4 38.68 53.28

81.83

200.28

13.58 12.55 12.3

9.67 10.97

0

4

8

12

0

100

200

300

FY14 FY15 FY16 FY17 FY18

AUM (Rs. Crore) Net Interest Margin (%) (RHS)

50.14 49.33

55.23 53.44

42.78

30

40

50

60

FY14 FY15 FY16 FY17 FY18

Cost/Income Ratio (%)

0.96 1.04 1.01

1.57 1.50

0.73 0.76 0.70

1.21

0.50 0.0

0.5

1.0

1.5

2.0

FY14 FY15 FY16 FY17 FY18Gross NPA (% AUM) NNPA (% AUM)

Spread remain higher with lower cost

Operational Efficiencies in Check

Growth in AUM and rise in NIM

Prudent Risk Management Policies Aids in Lower NPA”S

20

9.12

10.82 12.00

10.75

25.49

FY14 FY15 FY16 FY17 FY18

4.75 4.33

3.72

3.15

5.82

FY14 FY15 FY16 FY17 FY18

Strong improvement in return profile

Return on Average Equity (%) Return on Average Assets (%)

Outlook

22

29

38

46

55

70

FY18 FY19E FY20E FY21E FY22E

200

350

500

750

1,000

FY18 FY19E FY20E FY21E FY22E

Vision 2022 – An achievable path laid for growth

Targeting 5x AUM growth and 2x branch network growth

Loan Book (Rs. crore) Branch Network (In No.)

23

• The geographical expansion is on track, targeting to 38 branches by FY19E vs. 29 branches in FY18

• The demand for houses in rural exceeds the supply, widening the shortage as housing constructions targets are unmet

• Plans to raise equity in FY19 to reach comfortable base of Rs.100 Crore – to help in getting more leverage and further improvement in credit rating

• Leveraging technology like ERP to enhance operations thus reducing turnaround time from loan origination to documentation, disbursement, etc.

Strong growth levers in place

Financial Statements

25

Rs. Crore FY14 FY15 FY16 FY17 FY18

Interest Income 4.74 6.84 10.2 14.04 29.39

Financial Cost 1.33 2.39 4.04 5.74 11.27

Non Interest Income 0.00 0.03 0.05 0.51 4.87

Operating Expenses 1.66 2.13 3.35 4.47 9.35

Depreciation 0.05 0.07 0.08 0.31 0.44

Profit Before Tax (PBT) 1.69 2.26 2.76 4.02 13.19

Taxes 0.50 0.73 0.90 1.32 3.58

Profit After Tax (PAT) 1.19 1.53 1.86 2.71 9.62

Key Financial Ratios

Net Interest Income (NII Rs. Crore) 3.41 4.45 6.17 8.30 18.12

Net Interest Margin (%) 13.58 12.55 12.30 9.67 10.97

AUM (Rs. Crore) 26.40 38.68 53.28 81.83 200.28

New Approvals (Rs. Crore) 17.18 30.13 27.07 51.53 145.96

Disbursements (Rs. Crore) 16.11 25.39 27.31 47.37 142.82

Borrowing Cost (%) 12.90 13.15 13.15 11.61 10.56

Lending Rate (%) 23.67 23.15 23.23 22.58 22.08

Spread (%) 10.77 10.00 10.08 10.97 11.52

Cost/Income Ratio (%) 50.14 49.33 55.23 53.44 42.78

Gross NPA (% AUM) 0.96 1.04 1.01 1.57 1.50

NNPA (% AUM) 0.73 0.76 0.70 1.21 0.50

Return on Average Assets (RoAA %) 4.75 4.33 3.72 3.15 5.82

Return on Average Equity (RoAE %) 9.12 10.80 12.00 10.75 25.49

Earnings per share (EPS Rs.) 1.48 1.43 1.65 2.38 7.40

Profit & Loss Statement

26

Rs. Crore FY14 FY15 FY16 FY17 FY18

Assets

Loans 26.40 38.68 53.28 81.83 200.28

Total Investments 0.00 0.00 0.84 0.32 0.42

Other Assets 3.56 2.23 5.23 30.30 17.04

Total Assets 29.96 40.91 59.35 112.45 217.74

Equity & Liabilities

Shareholders' Funds 13.68 14.71 16.40 33.97 41.50

Borrowings 15.52 24.89 41.29 75.04 166.96

Liabilities & Provisions 0.76 1.31 1.66 3.44 9.28

Total Equity & Liabilities 29.96 40.91 59.35 112.45 217.74

Productivity Ratios

Number of Employees 19 18 35 55 140

Nos of Branches 9 9 15 19 29

Profit Per Employee (Rs. Crore) 0.06 0.09 0.05 0.05 0.07

Asset Per Employee (Rs. Crore) 1.39 2.15 1.52 1.49 1.43

Financial Metrics

Pre-Tax ROAA (%) 6.76 6.40 5.52 4.69 7.99

Post-Tax ROAA (%) 4.75 4.33 3.72 3.15 5.82

Return on Average Equity (ROAE %) 9.12 10.80 12.00 10.75 25.49

Capital Adequacy Ratio (%) 61.30 50.34 49.91 72.71 33.38

Balance Sheet

Annexure

Board of Directors

28

Mr. Vinod K. Jain is an experienced Managing Director (Promoter) with a vision to fuel

SRGHFL to be the next big participant in Housing Finance

Industry in India. He has with his deep financial prowess and

effective team management capabilities pioneered the

growth of Company with utmost honesty and integrity.

Mr. Vinod K. Jain Managing Director

Ms. Seema Jain is serving as Non-Executive Director to the

Board since the inception of the Company. She has excellent

leadership, management and organizational skills.

Ms. Seema Jain (DIN: 00248706)

Mr. Nishant Badala is an Independent Director of the

Company. He has completed the Masters in Commerce from

University of Udaipur. He is a Chartered Accountant and

Company Secretary by profession, having expertise in

the field of accounting, legal and taxation.

Mr. Nishant Badala (DIN:06611795)

Mr. Vikas Gupta is an Independent Director of the Company. He has done his

Bachelors of Commerce from Mohan Lal Sukhadia University. Udaipur. He also holds a degree

in Law (LLB).He is registered with Commissioner of Income tax.

Udaipur as Income Tax Practitioner. He has diverse

exposure in Tax consultancy and all related financial Services.

Mr. Vikas Gupta (DIN:05280808)

Mr. Ashok Kabra is an Independent Director of the Company. He has done his

Masters in Commerce. He has diverse exposure of more than 12 years in corporate finance,

stock broking, investments and financial services etc.

Mr. Ashok Kabra (DIN:00240618)

Senior management team

29

Mr. Modi has more than 25 years of experience in ensuring financial

strengthening to the individuals and organizations via audit and strategic planning. His in-depth knowledge about the financial

system and various derivatives is unparalleled. He is with the

company since 2012.

Mr. Ashok Modi Chief Financial Officer

Mr. Murdia has 15 years of experience into Sales and

Marketing and has build robust business models in sectors like

finance, insurance, telecom etc. He has an expertise in channel

management where he researches into identifying cum

building new market opportunities. He has been

working with the company since 2010.

Mr. Lavang Murdia Chief Marketing Officer

Mr. Singhvi is retired as a Senior Manager-Bank of Baroda with 36

years experience. His educational credentials include B.SC, M.COM, MBA, CAIIB. He is

involved in procedures and policies making financial

transaction less cumbersome. The strategies adopted by him have helped in building up of

customer network.

Mr. Dilip K. Singhvi GM-Operations

Ms. Nagar is an associate member of Institute of Company

Secretaries of India and also possesses LLB degree. She is

handling Compliance, Equity & Debt Financing matters. Her deep insights and research

mindset has helped company to find newer innovative ways to

expand and flourish. She joined the company in the year 2015.

Ms. Sunaina Nagar CS and Chief Investment Relation Officer

Awards & Recognition

30

Times Network Award for “Excellence in Marketing of Housing Finance Company” ET NOW Award for “Fastest Growing

Housing Finance Company of the year”

SKOCH ORDER OF MERIT for Top 100 SMEs in India

Mine India “Excellence Award”

Stock information

31

• Market cap (INR) – 290.6 Crore (As on 18th Dec18)

• Shares outstanding – 13.0 mn (As on 30th Sep 2018)

• BSE code: 534680

• Bloomberg code: 0596730D:IN

Shareholding Pattern as on 30th Sep 2018

40

60

80

100

120

140

160

180

200

220

Apr-

17

May-1

7

Jun-1

7

Jul-

17

Aug-1

7

Sep-1

7

Oct-

17

Nov-1

7

Dec-1

7

Jan-1

8

Feb-1

8

Mar-

18

Apr-

18

May-1

8

Jun-1

8

Jul-

18

Aug-1

8

Sep-1

8

Oct-

18

Nov-1

8

SRG Sensex

As on 18th Dec 2018

58.2%

0.3%

3.2%

38.4%

Promoters FPI Bodies Corporate Retail

138

121

Relative Stock Price Vs Sensex

Contact Us

32

Ms. Sunaina Nagar (Chief Investor Relations Officer) sunaina@srggroup.net +91-22-62215307

Investor Relations Contact

1046, 10th Floor,Hubtown Solaris, N.S.Phadke Marg, Near East West Flyover, Andheri (E), Mumbai, Maharashtra - 400 069.

Corporate Office

321, S.M. Lodha Complex, Near Shastri Circle, Udaipur, Rajasthan, 313001. CIN No: L65922RJ1999PLC015440 www.srghousing.com info@srghousing.com +91-0294-2561882 / 2412609

Registered Office