Q4 FY19 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

3

Q4 FY19 PAT at Rs 693.58 cr as against Rs 594.34 cr up 17%

Q4 FY19 Revenue from operations up by 20 % to Rs 4655 cr

Outstanding Loan portfolio up by 16 % to Rs. 194646 cr

Individual Loan Portfolio up by 14 % to Rs 181569 cr

Q4FY19 Loan Disbursements Rs 18649 cr against Rs 17402 cr up by 7%

Individual Home Loan Disbursements up by 18%

Net Interest Income Rs 1200.52 cr against Rs 989.26 for Q4FY18 up by 21%

Net Interest Margins 2.54% for Q4 FY19 as against 2.44% for Q4FY18

Gross NPAs at 1.53% as against 0.78% as on 31.03.2019

Net NPAs 1.07% as against 0.43% on corresponding dates

Individual Loans Gross NPAs 1.14% as on 31.03.2019

Total Provisions at Rs 1659 cr as against total Gross NPAs of Rs 2972 cr

Executive Summary – Q4 FY19

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

3032736151

41541

4937855315

0

10000

20000

30000

40000

50000

60000

2015 2016 2017 2018 2019

108361125173

145568167467

194646

0

40000

80000

120000

160000

200000

2015 2016 2017 2018 2019

1079912485 14080 14841

17362

0

10000

2015 2016 2017 2018 2019

13861661

1931 20032431

0500

10001500200025003000

2015 2016 2017 2018 2019

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

0.46% 0.45% 0.43%

0.78%

1.53%

0.22%0.22%0.14%

0.43%

1.07%

0%

1%

2%

2015 2016 2017 2018 2019

Gross

Net704 820

10381249

1659

0

500

1000

1500

2000

2015 2016 2017 2018 2019

87.2996.23

105.34

95.22

105.28

0.00

50.00

100.00

2015 2016 2017 2018 2019

3.46% 3.75% 4.34%2.98% 2.72%

0%

5%

2015 2016 2017 2018 2019

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

27.4732.91 38.26 39.68

48.16

0102030405060

2015 2016 2017 2018 2019

154.94 181.25219.49 251.49

322.19

0

200

400

2015 2016 2017 2018 2019

1.39%1.44% 1.43% 1.28% 1.34%

0%

1%

2%

2015 2016 2017 2018 2019

18.00%20.00%

19.00%17.00%

16.00%

0%

10%

20%

2015 2016 2017 2018 2019

9 New Marketing Offices and 2 New Back

Offices proposed to be opened in FY 2020

• 9 Regional Offices

• 23 Back Offices

• 273 Marketing Offices

• Rep offices in Dubai & Kuwait

• Coverage of more than 450 centres

• 2309 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)

273Marketing Offices

50 branches of

LICHFL Financial Services(100% subsidiary of LICHFL)

Distribution Network

Total No of Agents = 13343

8

85%

15%

Customer Type (No.)

Salaried Self Employed

61%21%

6%

5% 7%

Originations by source

HLA DSA CRA DIRECT LICHFLFSL

₹ 20.0

₹ 21.0

₹ 22.0

₹ 23.0

₹ 24.0

₹ 25.0

FY18 FY19

Incremental Ticket Size(Rs lacs)

46%85

Offices

54%188

Offices

Top 7 cities & Others

Top 7 cities Others9

Origination Pattern & Average Ticket Size

Loan Book Composition

31.03.2019

O/s Portfolio Rs 194646 cr

Retail Home Loans76.1%

Retail LAP/ other17.2%

Developer Loans6.75%

31.12.2018

O/s Portfolio Rs 183104 cr

10

Retail Home Loans77.2%

Retail LAP/ other16.5%

Developer Loans6.25%

11

Installment to Net Income RatioOn Incremental Sanctions

For FY17 32%

For FY18 31%

For FY19 32%

Loan To Value RatioOn Incremental Sanctions

For FY17 45%

For FY18 44%

For FY19 46%

Pure Floating Rate LoansTo Outstanding Portfolio

As of FY17 70%

As of FY18 74%

As of FY19 93%

PrepaymentLump Sum/ opening book

For FY17 10.9%

For FY18 11.0%

For FY19 10.2%

Individual Loans – Portfolio Stats

12

Financial Highlights

FY2019 FY2018

Return on Average Equity (%) 16% 17%

Return on Average Assets (%) 1.34% 1.28%

Earnings per share (on Rs 2 pd up) 48.16 39.68

Dividend per Share (on Rs 2 pd up) 7.60 6.80

Capital Adequacy Ratio

Tier I

Tier II

Total

March 2019

12.30

2.06

14.36

March 2018

13.06

2.43

15.49

13

PAT Reconciliation

Particulars Q4FY18

(Rs Crore)

FY18

(Rs Crore)

Net Profit after tax as per previous GAAP 539.33 1,989.59

Add / (Less) : Adjustments as per IND AS on account of:

Adjustment on account of Effective Interest Rate (EIR) on financial

assets and liabilities recognized at amortized cost /net interest on

credit impaired loans

11.17 96.88

Adjustment on account of Expected Credit Loss(ECL) (36.75) (248.73)

Reclassification of actuarial gains and losses on employee benefit

plans to other comprehensive income (1.98) (4.01)

Reversal of Deferred Tax liability (DTL) on 36(1)(viii) for the quarter 80.13 309.28

Adjustment on account of Modification Gain/Loss on Financial

Instruments(2.73) (162.51)

Adjustment on account of derecognition of Financial Instruments 5.63 23.92

Other Adjustments (0.46) (1.92)

Net Profit after Tax as per IND As 594.34 2,002.50

Other Comprehensive Income (Net of Tax) 1.29 2.62

Total Comprehensive Income (Net of Tax as per Ind AS) 595.63 2,005.12

14

Executive Summary-Q3/9MFY19

Var Q4

FY19

Q4

FY18

Var FY19 FY18

Interest Income on Individual Loans 18% 4289.22 3619.92 15% 15990.16 13938.78

Interest Income on Project Loans 41% 309.41 218.82 61% 1170.80 727.39

Total 20% 4598.63 3838.74 17% 17160.96 14666.17

Processing Fees & Other Fees - 9.74 9.81 - 34.83 35.62

Other Income 20% 46.99 39.00 20% 165.93 138.82

Gross Income 20% 4655.14 3887.55 17% 17361.72 14840.61

Interest Expenses 19% 3398.11 2849.48 16% 12891.55 11143.85

Net Interest Income 21% 1200.52 989.26 21% 4269.40 3522.32

Salary & Other Establishment Exp. 7% 165.57 155.40 8% 472.56 439.57

Net loss on derecognition of Financial

Instruments under amortised cost category

- 2.08 7.64 - 267.71 23.29

Impairment of Financial Instruments 68% 103.15 61.41 (25%) 350.35 468.40

Profit before Tax 21% 986.24 813.62 22% 3379.55 2765.50

Income Tax Provision including Deferred Tax 33% 292.66 219.28 24% 948.58 763.00

Net Profit 17% 693.58 594.34 21% 2430.97 2002.50

Executive Summary – Q4/FY19

VarQ4

FY19

Q4

FY18Var FY19 FY18

Disbursements

Individual 10% 16618 15136 7% 48187 45112

Project -10% 2031 2266 67% 7128 4266

Total 7% 18649 17402 12% 55315 49378

Outstanding Portfolio

Individual 14% 181569 159350

Project 62% 13077 8116

Total 16% 194646 167467

Net Interest Margins(%) 2.54% 2.44% 2.36% 2.25%

Weighted average cost of funds 8.49% 8.31%

Yield on advances annualised 10.53% 10.13%

Spreads 2.04% 1.82%

Rs cr

Outstanding Borrowings – Rs. 170629 crSource Wtd

Avg

Cost

(%)

Banks & Institutions 8.71%

Non Convertible Debenture 8.47%

National Housing Bank 8.30%

Sub. Bonds & Upper Tier II 8.89%

Commercial Paper 8.25%

Deposits 8.29%

Total 8.49%

as on 31.3.2019

Liability Profile

During Q4FY19, Incremental Cost of funds was 8.53%

* Includes Corporate Deposits of Rs 3777 cr

Bank15%

NCD75%

NHB1%

Sub Debt1%

CP4%

Deposits*4%

16

17

Change in Liability Mix- last 4 yrs

Wtd. Avg. cost

of Funds

Bank funding has

reduced from

32% in FY12 to

25% in FY14.

Retail Deposits

increased to 2.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY19 FY18 FY17 FY16

Others

Deposit*

NHB

Bank

NCD

8.49% 8.31% 8.59% 9.14%

* Includes Corporate Deposits of Rs. 3777 cr

Yield & Cost of Funds on portfolio

FY18 FY19

Yield on Advances onPortfolio

10.12% 10.53%

Wtd Avg cost of funds onTotal Borrowed Funds

8.31% 8.49%

NIMs 2.25% 2.36%

10.12% 10.53%

8.31% 8.49%

2.25%

2.36%

2.00%

2.10%

2.20%

2.30%

2.40%

2.50%

2.60%

2.70%

2.80%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

18

19

NIMs

2.34%2.35% 2.33%

2.54%

1.50%

2.50%

Q1

FY

19

Q2

FY

19

Q3

FY

19

Q4

FY

19

NIMs (for the quarter)

20

Classification of Assets

Exposure At Default%

March-19 March-18

Stage 1 94.05% 95.34%

Stage 2 4.37% 3.85%

Stage 3 1.58% 0.81%

Total 100% 100%

ECL Provision March-19 March-18

Stage 1 Rs 23.91 Cr Rs. 116.29 Cr

Stage 2 Rs.111.53 Cr Rs. 6.02 Cr

Stage 3 Rs. 1524.04 Cr Rs. 908.42 Cr

21

31.03.2019 31.03.2018

Gross NPA (Rs. cr) 2972 1304

Gross NPA (%) 1.53% 0.78%

Provisions for NPA (Rs. cr) 909 592

Net NPA(%) 1.07% 0.43%

Provisions incl standard asset prov.(Rs. cr) 1659* 1249

Gross & Net NPAs

Provisions cover incl standard asset prov.(%) 56% 96%

* As per IndAs

22

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