Q4 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
Q4 FY20 PAT at Rs 421.43 cr as against Rs 693.58 cr.
Q4 FY 20Revenue from operations up by 6 % to Rs 4920.17 cr
Outstanding Loan portfolio up by 8 % to Rs. 210578 cr
Individual Loan Portfolio up by 8% to Rs 196340 cr .
Q4FY 20 Loan Disbursements Rs 11325 cr against Rs 17242 cr .
Individual Home Loan Disbursements Rs. 8877 Cr as against Rs. 11743 Cr.
Net Interest Income Rs 1089 cr against Rs 1202 for Q4FY19
Net Interest Margins 2.34 % for FY20 as against 2.38% for FY19
Stage 3 EAD at 2.83% as against 2.73% as on 31.12.2019.
Executive Summary – Q4 FY20/FY 20
4
WHO announced COVID-19 outbreak as a pandemic on 11 March 2020.India was in Lockdown in various phases
since March 25,2020.Currently, the country is under the fifth phase of the lockdown which is also known as
Unlock 1.0, which entails much more relaxations than the previous ones including rail, road and domestic air
travel.
During Lockdown ,the Company seamlessly moved to the BCP and continued all regular operations through Work
from Home.
Moratorium- The Company offered 3 Months moratorium to its customers from March 2020 to May 2020 as per
Reserve Bank of India (RBI) Guidelines. RBI extended moratorium till 31st August 2020.About 25% of the EMI’s are
under moratorium.
Company has continued to raise funds through Banks, Capital Market, Refinance Schemes and Deposits during this
period.
Most of the Offices now opened for business, following relaxations in lockdown and guidelines issued by respective
authorities. Disbursement has also commenced.
Impact of Covid 19
5
Disbursement (Rs. Cr) CAGR 7%
Profit After Tax (Rs. cr) CAGR 15%Income (Rs. cr) CAGR 12%
Loan Portfolio (Rs.cr) CAGR 14%
Update – last 5 years
3615141541
4937853908
46936
0
10000
20000
30000
40000
50000
60000
2016 2017 2018 2019 2020
125173145568
167467194646 210578
0
50000
100000
150000
200000
250000
2016 2017 2018 2019 2020
1248514080 14841
1736519670
0
10000
20000
2016 2017 2018 2019 2020
16611931 2003
2431 2401
0500
10001500200025003000
2016 2017 2018 2019 2020
6
Gross & Net NPAs
Operating Expense to Total Income
Total Provisions* (Rs cr)
Profit per employee (Rs. lacs)
* For 2019 and 2020 ECL Provisions of Stage 1,2 and 3
Update – last 5 years
0.45% 0.43%0.78%
1.54%
2.86%
0.22%0.14% 0.43%
1.08%
1.99%
0%
1%
2%
3%
4%
2016 2017 2018 2019 2020
Gross
Net820 1038
12491659
2612
0
500
1000
1500
2000
2500
3000
2016 2017 2018 2019 2020
96.23105.34
95.22 105.28 100.41
0
50
100
2016 2017 2018 2019 2020
3.75%4.34%
2.98% 2.74% 3.14%
0%
5%
2016 2017 2018 2019 2020
Yield & Cost of Funds on portfolio
FY19 FY20
Yield on Advances onPortfolio
10.53% 10.02%
Wtd Avg cost of funds onTotal Borrowed Funds
8.49% 8.08%
NIMs 2.38% 2.34%
10.53%
10.02%
8.49%8.08%
2.38%2.34%
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%
7
8
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
32.9138.26 39.68
48.16 47.59
0102030405060
2016 2017 2018 2019 2020
181.25219.49 251.49
322.19360.47
0
200
400
2016 2017 2018 2019 2020
1.44% 1.43%1.28% 1.34%
1.18%
0%
1%
2%
2016 2017 2018 2019 2020
18.00%20.00%
19.00%17.00%
16.00%14.00%
0%
10%
20%
2015 2016 2017 2018 2019 2020
• 9 Regional Offices
• 24 Back Offices
• 282 Marketing Offices
• Rep offices in Dubai & Kuwait
• Coverage of more than 450 centres
• 2392 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
2020 282 24 9 2392 210578
Widening footprint…improved efficiencies
9
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
10
85%
15%
Customer Type (No.)
Salaried Self Employed
58%21%
5%
8%8%
Originations by source
HLA DSA CRA DIRECT LICHFLFSL
₹ 20.0
₹ 21.0
₹ 22.0
₹ 23.0
₹ 24.0
₹ 25.0
FY19 FY20
Incremental Ticket Size(Rs lacs)
43%85
Offices
57%197
Offices
Top 7 cities & Others
Top 7 cities Others11
Origination Pattern & Average Ticket Size
Loan Book Composition
31.03.2020
O/s Portfolio Rs 210578 cr
Retail Home Loans76.9%
Retail LAP/ other16.3%
Developer Loans6.8%
31.03.2019
O/s Portfolio Rs 194646 cr
12
Retail Home Loans
76.08%
Retail LAP/ other17.2%
Developer Loans6.72%
13
Installment to Net Income RatioOn Incremental Sanctions
For FY18 31%
For FY19 32%
For FY20 31%
Loan To Value RatioOn Incremental Sanctions
For FY18 44%
For FY19 46%
For FY20 49%
Pure Floating Rate LoansTo Outstanding Portfolio
As of FY18 74%
As of FY19 93%
As of FY20 92%
PrepaymentLump Sum/ opening book
For FY18 11.0%
For FY19 10.2%
For FY20 10.1%
Individual Loans – Portfolio Stats
14
Financial Highlights
FY2020 FY2019
Return on Average Equity (%) 14% 16%
Return on Average Assets for qtr (%) 1.18% 1.34%
Earnings per share (on Rs 2 pd up) 47.59 48.16
Dividend per Share (on Rs 2 pd up) 8.00 7.60
Capital Adequacy Ratio
Tier I
Tier II
Total
Sept 2019
12.49
1.88
14.37
March 2019
12.30
2.06
14.36
15
Executive Summary-Q4/FY20Var Q4 FY20 Q4
FY19
Var FY20 FY19
Interest Income on Individual Loans 4.5% 4482.82 4290.30 12% 17928.15 15992.00
Interest Income on Project Loans 18% 364.56 309.41 31% 1533.80 1170.80
Total 5% 4847.38 4599.71 13% 19461.95 17162.80
Processing Fees & Other Fees (32%) 5.05 7.45 13% 39.43 34.83
Other Income (32%) 34.52 50.86 1% 168.38 166.95
Gross Income 5% 4886.94 4658.01 13% 19669.76 17364.59
Interest Expenses 11% 3764.23 3398.10 15% 14783.86 12891.55
Net Interest Income (9%) 1089.32 1201.61 10% 4688.96 4271.25
Salary & Other Establishment Exp. 36% 228.77 168.45 30% 616.69 475.42
Net loss on derecognition of Financial
Instruments under amortised cost category
39.98 2.08(82%)
47.49 267.71
Impairment of Financial Instruments (74%) 27.25 103.15 172% 952.73 350.35
Profit before Tax (16%) 826.72 986.24 (3%) 3268.99 3379.55
Income Tax Provision including Deferred Tax (%) 405.29 292.66 (9%) 867.15 948.58
Net Profit (39%) 421.43 693.58 (1%) 2401.83 2430.97
Executive Summary – Q4/FY20
VarQ4
FY20
Q4
FY19Var FY20 FY19
Disbursements
Individual(28%) 10912 15211 (5%) 44318 46780
Project(80%)
413 2031(63%)
2618 7128
Total(34%)
11325 17242(13%)
46936 53908
Outstanding Portfolio
Individual8%
196340 181569
Project9%
14237 13077
Total8%
210578 194646
Net Interest Margins(%) 2.10% 2.56% 2.34% 2.38%
Weighted average cost of funds 8.08% 8.49%
Yield on advances annualised 10.02% 10.53%
Spreads 1.94% 2.04%
Rs cr
Outstanding Borrowings – Rs. 191209 crSource Wtd
Avg
Cost
(%)
Banks & Institutions 7.76%
Non Convertible Debenture 8.31%
National Housing Bank 7.56%
Sub. Bonds & Upper Tier II 8.95%
Commercial Paper 6.51%
Deposits 7.90%
Total 8.08%
as on 31.3.2020
Liability Profile
During FY20, Incremental Cost of funds was 7.90%
Bank22%
NCD65%
NHB1%
Sub Debt1%
CP4%
Deposits7%
17
18
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%
FY20 FY19 FY18 FY17
Others
Deposit
NHB
Bank
NCD
8.08% 8.49% 8.31% 8.59%
19
NIMs
2.25%
2.38% 2.34%
1.50%
2.50%
FY
18
FY
19
FY
20
NIMs (for the quarter)
20
Classification of Assets
Exposure At Default % March-20 March-19
Stage 1 92.51% 94.01%
Stage 2 4.66% 4.41%
Stage 3 2.83% 1.58%
Total 100% 100%
ECL Provision March-20 March-19
Stage 1 Rs 0.03 Cr Rs 23.91 Cr
Stage 2 Rs.0.15Cr Rs.111.53 Cr
Stage 3 Rs.2612 Cr Rs. 1524.04 Cr
21
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