4 November 2015

2QFY16 Results Update | Sector: Financials

Repco Home Finance

BSE SENSEX
26,553
Bloomberg

S&P CNX
8,040
REPCO IN

Equity Shares (m)

61.0

M.Cap. (INR b) / (USD b)

42.6/0.7

52-Week Range (INR)

785 / 482

1, 6, 12 Rel. Per (%)

-5/21/49

12M Avg Val (INR M)

90

Free float (%)

62.8

Financials & Valuation (INR Billion)

Y/E March

2016E 2017E 2018E

NII

3.0

4.2

5.3

PPP

2.5

3.6

4.5

PAT

1.5

2.2

2.7

EPS (INR)

23.6

34.5

42.7

BV/Sh. (INR) 151.1 181.6 219.4

RoAA (%)

2.1

2.3

2.1

RoE (%)

16.8

20.7

21.3

Payout (%)
Valuations

11.6

11.6

11.6

P/E (x)

29.6

20.2

16.4

P/BV (x)

4.6

3.8

3.2

Div. Yield (%)

0.3

0.5

0.6

CMP: INR698

Buy

Growth remains healthy; rating upgrade to lower cost of funds

Repcos 2QFY16 PAT grew 19.4% YoY to INR391m on the back of healthy loan
growth (31% YoY). Although NIMs declined marginally (-10bp YoY), rating upgrade
(AA from AA-) is expected to lower cost of fund going forward.
Business momentum remained strong, with loan book growing a healthy 31% to
INR68.5b. The growth was backed by strong disbursements of INR7.8b (up 43%
YoY) and broad-based growth in nearly all geographies and segments (HL and LAP).
NIMs declined 10bp YoY to 4.4% (2QFY15: 4.5%) as leverage increased to 6.6x from
5.8x in 2QFY15. Taking advantage of falling interest rates, Repco is increasingly
borrowing via NCDs (6.8% of borrowings v/s nil last year; ~70% of incremental
borrowing) and reducing its exposure on NHB refinance (17% v/s 22% in
2QFY15)where spreads are capped. Thus, spreads have remained stable at
~2.95% for the past five quarters despite the company reducing lending rates.
Repcos rating was upgraded to AA from AA- toward the end of the quarter. The
company last issued NCD at ~9.2% (prior to upgrade), but has not issued any bonds
since. We expect the rating upgrade to reduce cost of funds by 15-20bp.
GNPA increased 15bp YoY to 1.8% v/s 1.65% in 2QFY15, but improved 42bp QoQ
from 2.22%in line with trend where Q1 and Q3 GNPAs are generally higher than
Q2 and Q4 GNPAs. PCR remained largely stable at 49.5% (51.5% last year).
Valuation and view: RHFL has delivered loan book CAGR of 34%+ over FY10-15, with
equally impressive earnings growth of 25%. Presence in the underserved markets,
pricing power on the asset side, recent rating upgrade (which is likely to lead to lower
cost of fund), stringent cost control as well as credit appraisal processes and
expanding reach will ensure earnings growth in near to medium term; we expect a
healthy 30%+ loan/earning growth for the next three years. Repco is currently trading
at 3.8x FY17E BV. Maintain Buy with a TP INR817 (4.5x FY17 BV)

REPCO: Quarterly performance

Y/E March
Interes t Income
Interes t Expens es
Net Interest Income
YoY Growth (%)
Other i ncome
Total Income
YoY Growth (%)
Opera ti ng Expens es
YoY Growth (%)
Operating Profits
YoY Growth (%)
Provi s i ons
Profit before Tax
Ta x Provi s i ons
Profit after tax
YoY Growth (%)
Borrowi ngs growth (%)
Cos t to Income Ra ti o (%)
Ta x Ra te (%)

TP: INR817 (+17%)

1Q
1,506
976
530
25.1
55
585
23.8
113
45.0
473
19.6
98
375
94
248
11.4
33.5
19.2
25.2

FY15
2Q
1,647
1,054
593
25.4
45
638
20.7
128
61.5
510
13.5
17
493
136
322
10.5
32.2
20.1
27.5

3Q
1,708
1,120
588
24.6
49
637
24.0
142
28.5
495
22.8
26
469
128
307
13.3
28.4
22.3
27.4

4Q
1,830
1,168
662
22.8
85
747
26.5
165
36.6
582
23.9
62
520
131
348
10.5
30.8
22.1
25.1

1Q
1,935
1,271
664
25.2
66
730
24.7
154
37.0
576
21.8
113
463
161
302
21.8
32.4
21.1
34.7

FY16
2Q
2,084
1,344
740
24.7
80
820
28.4
175
36.8
644
26.3
47
597
207
391
21.2
33.4
21.4
34.6

(INR Million)
FY15
FY16E
3QE
2,175
1,425
751
27.7
55
806
26.5
192
35.3
614
23.9
55
559
193
366
19.0
36.1
23.8
34.5

4QE
2,364
1,523
840
27.0
57
898
20.2
207
25.3
691
18.7
62
630
216
414
19.0
36.9
23.0
34.2

6,691
4,318
2,373
24.4
234
2,608
23.8
547
41.1
2,060
19.9
203
1,857
489
1,226
11.4
30.8
21.0
26.3

8,558
5,563
2,994
26.2
259
3,253
24.8
728
33.0
2,525
22.6
276
2,249
776
1,473
20.1
36.9
22.4
34.5

Sunesh Khanna (Sunesh.Khanna@MotilalOswal.com); +91 22 3982 5521

Alpesh Mehta (Alpesh.Mehta@MotilalOswal.com) / Harshvardhan Agrawal (Harshvardhan.Agrawal@MotilalOswal.com)
Investors are advised to refer through disclosures made at the end of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Repco Home Finance

Exhibit 1: Quarterly performance v/s expectations and deviations for the same
Y/e March
Interest Income
Interest Expenses
Net Interest Income
YoY Growth (%)
Other income
Total Income
YoY Growth (%)
Operating Expenses
YoY Growth (%)
Operating Profits
YoY Growth (%)
Provisions
Profit before Tax
Tax Provisions
Profit after tax
YoY Growth (%)
Borrowings growth (%)
Cost to Income Ratio (%)
Tax Rate (%)

2QFY16E
2,109
1,360
749
26.3
55
804
25.9
165
28.8
639
25.2
70
569
185
384
19.2
34.3
20.5
32.5

2QFY16A
2,084
1,344
740
24.7
80
820
28.4
175
36.8
644
26.3
47
597
207
391
21.2
33.4
21.4
34.6

Var (%)
-1
-1
-1

Comments

Spreads stable at 295bps

46
2
6

Higher expense due ESOP provisions

1
-33
5
12
2

PCR largely stable at 49.5%

Lower provisions led to PBT beat
Tax rate at 34.6%

Source: Company, MOSL

Loan book grows 31% YoY; Broad based growth in all segments

Business momentum remained strong, with loan book growing a healthy 31% to
INR68.5b, backed by strong disbursements of INR7.8b (up 43% YoY). Sanctions
for the quarter grew 54% YoY (30% QoQ) to INR8.6b.
Growth was broad based with nearly all geographies and segments (home loans
and LAP) growing at a healthy pace. Loan against property constitute 19.2% of
the total loans, company intends to maintain LAP at 20% of the loan book. Share
of non-salaried borrowers in borrowing mix increased to 57.5% v/s 55.7% in
2QFY15.

NIMs decline as leverage increases; Stable spreads at 2.95%

NIMs declined 10bp YoY to 4.4% (2QFY15: 4.5%) as leverage increased to 6.6x
from 5.8x in 2QFY15. Taking advantage of declining interest rates, Repco is
increasingly borrowing via NCDs (6.8% of borrowings v/s nil last year). NCDs
now constitute nearly ~70% of incremental borrowing. Repco is reducing
dependence on NHB refinance (17% v/s 22% in 2QFY15), as spread are capped.
Repco has maintained its spreads at ~2.95% for the past five quarters, even
while reducing lending rates for its customers, on back of efficient borrowing
program that relies more on market borrowings.
Repcos rating was upgraded to AA from AA- by CARE towards the end of the
quarter. The company last issued NCD at ~9.2% (prior to upgrade) and has not
issued any bonds since. We expect the rating upgrade would lower cost of funds
by further 15-20bp which would be comfortably below base rates of banks
(~9.4%)

GNPA at 1.8% increase 15bp YoY; CI ratio at 21.3%

4 November 2015

GNPA increased 15bp YoY to 1.8% v/s 1.65% in 2QFY15, but improved 42bp QoQ
from 2.22%, in line with trend where Q1 & Q3 GNPAs are generally higher than
Q2 & Q4 GNPAs for Repco. PCR remained largely stable at 49.5% (51.5% last
2

Repco Home Finance

year). Credit cost for the quarter was at 29bp v/s 13bp last year due to higher
provisions.
Operating expenses grew 37% YoY. The increase is opex is largely due to
increase in employee expenses which included ESOP amortization. The reported
cost to income ratio for the quarter is looking optically higher at 21.3%; however
adjusting for ESOP expenses cost to income for the quarter stood at 18-18.5%
(in-line with past trend).

Valuation and view

REPCO has established a strong presence in southern states and is steadily

expanding to other geographies. Over the last decade, the company has built a
scalable business model with a well-balanced portfolio.
Moreover presence in the under-served markets, pricing power on the asset
side, recent rating upgrade which would lead to lower cost of fund, stringent
cost control as well as credit appraisal processes and expanding reach will
ensure earnings growth in near to medium term; we expect a healthy 30%+ loan
growth for the next three years.
In our view Repco will continue to trade at premium multiples led by its niche
business model, inherently high profitability with the ability to improve return
ratios, high capitalization, consistent execution, and minimal asset quality
overhanggiven a secured loan book. Ongoing downward trend in interest
rates could also prove to be a trigger for profitability. Repco is currently trading
at 3.8x FY17 BV. Maintain Buy with TP INR817 (4.5x FY17 BV)

Exhibit 2: We largely maintain our estimates

INR b
NII
Other Income
Total Income
Operating Expenses
Operating Profits
Provisions
PBT
Tax
PAT
Loan book
NIM (%)
Spreads (%)
ROAA (%)
RoAE (%)

FY16E
3.0
0.2
3.2
0.7
2.5
0.3
2.3
0.8
1.5
78
4.4
3.3
2.2
17.3

Old Est.
FY17E
4.1
0.3
4.4
0.9
3.5
0.4
3.2
1.0
2.1
102
4.6
3.5
2.3
20.4

FY18E
5.1
0.3
5.4
1.1
4.3
0.5
3.8
1.3
2.6
135
4.3
3.4
2.1
20.6

FY16E
3.0
0.3
3.3
0.7
2.5
0.3
2.2
0.8
1.5
79
4.3
3.4
2.1
16.8

New Est.
FY17E
4.2
0.3
4.5
0.9
3.6
0.4
3.2
1.1
2.2
106
4.6
3.5
2.3
20.7

FY18E
5.3
0.3
5.6
1.1
4.5
0.5
4.0
1.3
2.7
139
4.3
3.4
2.1
21.3

FY16E
0.2
4.7
0.5
6.0
-1.0
1.0
-1.2
3.3
-3.4
1.8

Change (%)
FY17E
2.0
11.4
2.5
7.4
1.3
2.6
1.2
1.2
1.2
3.2

FY18E
3.1
18.4
3.9
6.2
3.3
3.3
3.3
3.3
3.3
3.3

Source: Company, MOSL

4 November 2015

Repco Home Finance

Exhibit 3: Quarterly Snapshot
FY14
Profit and Loss (INR m)
Net Interest Income
Operating Expenses
Employee
Others
Operating Profits
Provisions
PBT
Taxes
PAT
Asset Quality
GNPA
NNPA
Gross NPAs (%)
Net NPAs (%)
PCR (Calculated, %)
Ratios (%)
Cost to Income
Provision to operating profit
Tax Rate
Total CAR
RoA - calculated
RoE - calculated
Margins Reported (%)
Yield on earning assets
Cost of Funds
Spreads
NIMs
Business Details (INR b)
Loans
Individual Home Loans
Loans against Property
Total Loans
AUM Mix (%)
Individual Home Loans
Loans against Property
Total Borrowing Mix (%)
Banks
NHB
Repco Bank
NCD/CPs

4 November 2015

1Q

2Q

3Q

4Q

1Q

FY15
2Q
3Q

4Q

1Q

FY16
2Q

Variation (%)
QoQ YoY

424
78
41
37
395
98
297
75
223

473
79
45
34
450
53
397
105
292

472
110
56
54
403
35
368
97
271

539
121
69
52
470
41
429
114
315

530
113
68
45
473
98
375
127
248

593
128
77
51
510
17
493
171
327

588
142
85
57
495
26
469
161
307

662
165
105
60
582
62
520
172
348

664
154
101
53
576
113
463
161
302

740
175
114
61
644
47
597
207
391

11
14
13
15
12
-58
29
29
29

25
37
49
19
26
179
21
21
19

883
569
2.2
1.5
35.6

672
371
1.7
0.9
44.8

877
549
2.0
1.3
37.4

686
336
1.5
0.7
51.0

1,218
783
2.5
1.6
35.7

864
418
1.7
0.8
51.6

1,095
638
2.0
1.2
41.7

791
301
1.3
0.5
62.0

1,406
818
2.2
1.3
41.8

1,236
624
1.8
0.9
49.5

-12
-24

43
49

18.3
24.8
25.1
24.8
2.7
18.8

16.8
11.8
26.5
25.6
2.7
20.6

23.4
8.7
26.3
25.0
2.7
20.4

22.4
8.7
26.6
24.5
2.7
16.4

21.2
20.7
33.8
23.5
2.6
16.5

21.6
3.3
34.7
21.9
2.5
16.3

24.1
5.3
34.4
21.5
2.4
16.2

24.9
10.7
33.1
20.3
2.3
16.1

23.2
19.6
34.7
20.0
2.3
16.4

23.7
7.3
34.6
0.0
2.2
16.1

-4
-2

-12
-1

12.5
9.4
3.1
4.7

12.8
9.7
3.1
4.9

12.6
9.8
2.8
4.5

12.9
9.7
3.2
4.8

12.6
9.8
2.8
4.4

13.0
10.0
3.1
4.7

12.7
9.9
2.8
4.4

12.7
9.6
3.1
4.6

12.5
9.7
2.8
4.3

12.6
9.6
3.1
4.5

32
6
37

34
7
40

36
8
43

38
9
47

40
9
49

42
10
52

44
11
55

49
12
60

51
12
63

55
13
68

8
9
8

31
29
31

85
15

84
16

83
18

81
19

81
19

81
20

81
19

81
19

81
19

81
19

57.5
34.6
7.9
0.0

62.8
30.0
7.2
0.0

64.7
26.0
9.3
0.0

64.8
25.0
10.2
0.0

63.9
26.2
9.9
0.0

68.9
22.1
9.0
0.0

71.8
19.7
8.5
0.0

67.6
21.4
7.9
3.1

68.2
19.1
9.0
3.7

68.1
16.6
8.5
6.8
Source: Company, MOSL

Repco Home Finance

Story in charts
Exhibit 5: Loan mix largely remains stable (%)

63

68

1QFY16

2QFY16

19.3

19.2

19

19.2

83.7

82.5

81.3

80.8

80.5

80.7

80.8

81

80.8

Source: Company, MOSL

1QFY16

2QFY16

4.5

4.5

4.6

Source: Company, MOSL

Exhibit 8: GNPA/NNPA at 1.8%/0.92% (%)

Non-salaried

1.8

46.9 46.6 46.0 45.5 45.0 44.7 44.3 44.1 43.2 42.9 42.5

1.29
0.92

0.5

2QFY16

1QFY16

4QFY15

3QFY15

2QFY15

1QFY15

4QFY14

3QFY14

2QFY14

1QFY14

2QFY16

53.1 53.4 54.0 54.5 55.0 55.3 55.7 55.9 56.8 57.1 57.5
4QFY13

1.16 1.3

Source: Company, MOSL

4 November 2015

Salaried

2.2

2.0

1QFY16

3QFY14

2QFY14

1QFY14

0.81

0.72

Exhibit 9: Loans to non-salaried continues to increase

4QFY15

1.28

0.92

1.5

2.5
1.6 1.7

1QFY15

1.7

2.0

4QFY14

2.0

2QFY15

2.6

4.4

Source: Company, MOSL

NNPA(%)

3QFY15

GNPA(%)

4.3

2QFY16

4QFY15

65

4.4

1QFY16

3QFY15

63

4.7

4QFY15

68

58

4.6

3QFY15

68

25

4.7

2QFY15

68

26

4.7

1QFY15

72

30

9
19

7
8
17

4QFY14

69

10

3QFY14

64

10

3QFY14

65

2QFY14

9
20

8
15

1QFY14

26

9
22

3
8
21

2QFY14

Exhibit 7: NIM remain healthy at +4.4% (%)

NCDs/CP

2QFY15

Repco Bank

1QFY15

NHB

4QFY14

Banks

Source: Company, MOSL

1QFY14

Exhibit 6: NHB funding declines +500bp YoY (%)

2QFY16

60
4QFY15

19.5

1QFY16

55
3QFY15

19.2

4QFY15

52
2QFY15

18.7

3QFY15

49
1QFY15

17.5

2QFY15

47
4QFY14

16.3

1QFY15

43
3QFY14

LAP

4QFY14

40
2QFY14

Individual Home

3QFY14

37
1QFY14

Loan (INR b)
Loan Growth (%)
32.1 31.5
30.8
30.6
30.3
29.8
29.7
29.3
29.0
27.3

2QFY14

Exhibit 4: Loan growth continues to remain healthy 31%

Source: Company, MOSL

Repco Home Finance

Exhibit 10: Financials: Valuation Metrics
66
ICICIBC*
HDFCB
AXSB
KMB*
YES
IIB
DCBB
FB
JKBK
SIB
Private Aggregate
SBIN (cons)*
PNB
BOI
BOB
CBK
UNBK
OBC
INBK
CRPBK
ANDB
IDBI
DBNK
Public Aggregate
HDFC*
LICHF
DEWH
IHFL
GRHF
REPCO
IDFC
RECL
POWF
SHTF
MMFS
BAF
MUTH
NBFC Aggregate

Rating

CMP

Mcap

EPS (INR)

P/E (x)

(INR) (USDb) FY16 FY17 FY16

273
24.0 21.8 25.4 9.0
1,082 41.1 49.1 59.3 22.0
473
17.0 35.6 41.8 13.3
675
18.7 19.2 26.0 35.1
783
5.0 60.0 75.8 13.1
914
8.2 41.3 51.3 22.1
86
0.4
5.4 5.8 16.0
55
1.4
4.4 5.6 12.5
88
0.6 14.1 17.3 6.3
21
0.4
2.5 3.1 8.2
116.8
17.8
Buy
238
27.3 25.6 31.7 8.9
Buy
131
3.7 19.6 26.8 6.7
Neutral
133
1.3 19.4 27.1 6.9
Buy
163
1.1 20.3 25.1 8.0
Buy
274
2.1 43.8 59.7 6.3
Buy
163
1.6 35.7 46.6 4.6
Buy
144
0.7 44.2 55.6 3.3
Buy
127
0.9 21.1 30.6 6.0
Neutral
43
0.1 16.5 21.9 2.6
Buy
66
0.6 17.8 22.8 3.7
Neutral
85
2.1 14.4 19.7 5.9
Neutral
43
0.4
8.8 12.5 4.9
41.9
7.5
Under Review 1,220 29.1
35
42 22.1
Buy
481
3.7
34
42 14.2
Buy
220
1.0
26
33
8.4
Buy
716
4.6
56
72 12.8
Buy
258
1.4
7
9
38.0
Buy
698
0.7
24
34 28.6
Buy
60
1.4
10
12
6.2
Buy
265
4.0
63
76
4.2
Buy
253
5.1
54
59
4.7
Buy
955
3.3
62
73 15.4
Buy
226
1.9
12
15 18.7
Buy
5,345
4.3
224 276 23.8
Buy
185
5.6
19
24 11.8
60.5
15.3
Buy
Buy
Buy
Neutral
Buy
Buy
Sell
Neutral
Neutral
Buy

FY17
7.3
18.3
11.3
25.9
10.3
17.8
14.8
9.9
5.1
6.8
14.9
7.1
4.9
4.9
6.5
4.6
3.5
2.6
4.2
2.0
2.9
4.3
3.4
5.8
16.8
11.3
6.7
10.0
30.1
20.5
5.2
3.5
4.3
13.1
14.8
19.4
9.5
13.0

BV (INR)
FY16
132
285
217
183
327
295
60
49
136
29

FY17
150
331
252
209
388
340
66
53
150
31

P/BV (x)

FY16
1.50
3.80
2.18
3.68
2.39
3.09
1.43
1.14
0.65
0.73
2.67
229 255 0.99
220 244 0.60
410 432 0.33
182 201 0.90
573 619 0.48
317 356 0.51
473 515 0.31
278 301 0.46
141 158 0.30
180 196 0.37
157 173 0.54
126 136 0.34
0.68
165 188 4.71
182 216 2.64
179 204 1.23
275 304 2.61
24
28 10.91
152 182 4.60
107 116 0.29
302 360 0.88
285 328 0.89
457 515 2.09
109 120 2.07
1,351 1,582 3.96
140 156 1.61
2.63

FY17
1.23
3.27
1.88
3.23
2.02
2.69
1.30
1.05
0.59
0.68
2.35
0.88
0.54
0.31
0.81
0.44
0.46
0.28
0.42
0.27
0.34
0.49
0.32
0.63
3.70
2.23
1.08
2.35
9.06
3.84
0.26
0.74
0.77
1.85
1.88
3.38
1.45
2.31

RoA (%)

RoE (%)

FY16
1.58
1.88
1.69
1.11
1.67
2.04
0.84
0.86
0.85
0.55

FY17
1.58
1.86
1.70
1.40
1.73
2.08
0.73
0.95
0.92
0.58

FY16
15.0
18.4
17.5
13.9
19.8
17.6
9.3
9.5
10.7
9.4

FY17
15.3
19.3
17.8
14.5
21.2
16.1
9.2
11.0
12.1
10.3

0.70
0.57
0.20
0.61
0.39
0.56
0.55
0.50
0.54
0.55
0.58
0.36

0.77
0.70
0.25
0.68
0.48
0.65
0.62
0.65
0.64
0.62
0.69
0.44

11.7
9.3
4.8
11.7
8.1
11.8
9.7
7.8
12.3
10.3
9.5
7.2

13.1
11.6
6.4
13.1
10.0
13.9
11.3
10.6
14.7
12.2
11.9
9.6

2.46
1.48
1.27
3.91
2.18
2.20
1.75
3.22
3.08
2.08
1.93
3.12
2.65

2.55
1.55
1.29
4.07
2.05
2.32
1.83
3.23
2.97
2.29
2.22
2.92
2.85

23.6
20.1
15.6
25.9
28.9
17.3
8.8
22.9
20.5
14.0
11.5
19.9
14.3

22.7
21.3
17.2
24.8
28.6
20.4
9.8
22.9
19.3
15.0
13.3
18.8
16.1

Source: MOSL

4 November 2015

Repco Home Finance

Financials and valuations

Income statement
Y/E March
Interest Income
Interest Expended
Net Interest Income
Change (%)
Other Operating Income
Net Income
Change (%)
Operating Expenses
Operating Income
Change (%)
Provisions/write offs
PBT
Tax
Tax Rate (%)
Reported PAT
Change (%)

2011
2,138
1,279
860
32.6
121
981
31.9
150
831
28.0
39
793
211
27
582
31.1

2012
3,055
2,023
1,032
20.1
134
1,166
18.9
194
972
16.9
155
816
202
25
615
5.7

2013
3,912
2,656
1,255
21.6
148
1,403
20.4
243
1,160
19.4
92
1,068
268
25
800
30.2

2014
5,156
3,247
1,908
52.0
194
2,102
49.8
388
1,714
47.7
226
1,488
390
26
1,098
37.2

2015
6,691
4,317
2,374
24.4
235
2,609
24.1
547
2,061
20.3
203
1,858
631
34
1,227
11.8

2016E
8,558
5,563
2,994
26.2
259
3,253
24.7
728
2,525
22.5
276
2,249
776
35
1,473
20.0

2017E
11,575
7,363
4,213
40.7
292
4,504
38.5
923
3,582
41.9
369
3,212
1,060
33
2,152
46.1

(INR Million)
2018E
15,135
9,864
5,272
25.1
328
5,600
24.3
1,138
4,462
24.6
489
3,973
1,311
33
2,662
23.7

2011
464
2,013
2,477
2,534
18,098
42.2
397
20,973
20,758
48.3
21
0.0
30
164
20,973

2012
464
2,568
3,033
2,486
24,860
37.4
634
28,527
28,090
35.3
81
292.7
33
323
28,527

2013
622
5,724
6,345
3,678
30,647
23.3
932
37,924
35,500
26.4
81
0.0
45
2,299
37,924

2014
622
6,760
7,381
3,982
39,020
27.3
959
47,361
45,961
29.5
124
54.0
50
1,226
47,361

2015
624
7,497
8,121
5,614
51,044
30.8
1,592
60,757
59,262
28.9
124
0.0
89
1,282
60,757

2016E
624
8,799
9,423
69,896
69,896
36.9
1,671
80,990
78,979
33.3
136
10.0
94
1,781
80,990

2017E
624
10,702
11,326
94,630
94,630
35.4
1,755
107,710
105,732
33.9
150
10.0
98
1,730
107,710

(INR Million)
2018E
624
13,055
13,679
125,790
125,790
32.9
1,842
141,311
138,995
31.5
165
10.0
103
2,048
141,311

Balance sheet
Y/E March
Capital
Reserves & Surplus
Net Worth
Borrowings
Borrowings
Change (%)
Other liabilities
Total Liabilities
Loans
Change (%)
Investments
Change (%)
Net Fixed Assets
Other assets
Total Assets
E: MOSL Estimates

4 November 2015

Repco Home Finance

Financials and valuations

Ratios
Y/E March
Spreads Analysis (%)
Avg Yield on Housing Loans
Avg. Yield on Earning Assets
Avg. Cost-Int. Bear. Liab.
Interest Spread
Net Interest Margin

2011

2012

2013

2014

2015

2016E

2017E

2018E

12.2
12.3
8.3
4.0
4.9

12.4
12.5
9.4
3.1
4.2

12.2
12.3
9.6
2.7
3.9

12.5
12.6
9.3
3.3
4.7

12.6
12.7
9.6
3.1
4.5

12.6
12.4
9.2
3.2
4.3

12.5
12.5
9.0
3.6
4.6

12.3
12.4
9.0
3.4
4.3

Profitability Ratios (%)

RoE
RoA
Int. Expended/Int.Earned
Other Inc./Net Income

26.5
3.24
59.8
12.3

22.3
2.48
66.2
11.5

17.1
2.41
67.9
10.5

16.0
2.57
63.0
9.2

15.8
2.27
64.5
9.0

16.8
2.08
65.0
8.0

20.7
2.28
63.6
6.5

21.3
2.14
65.2
5.9

Efficiency Ratios (%)

Op. Exps./Net Income
Empl. Cost/Op. Exps.

15.3
48.2

16.7
54.1

17.3
58.0

18.5
54.3

21.0
61.2

22.4
64.4

20.5
66.1

20.3
67.0

Asset Quality (%)

Gross NPAs
Gross NPAs to Adv.
Net NPAs
Net NPAs to Adv.
CAR

252
1.2
182
0.9
18.2

382
1.4
265
0.9
16.5

525
1.5
348
1.0
25.5

686
1.5
333
0.7
24.0

791
1.3
298
0.5
22.0

1,028
1.2
668
0.4
20.0

1,344
1.1
874
0.2
20.0

1,767
1.0
1,149
0.0
20.0

53.3
13.1
12.5
31.1
55.7
0.9

65.3
10.7
13.2
5.7
52.7
1.0
0.1

102.1
6.8
12.9
-2.7
54.2
1.3
0.2

118.7
5.9
17.7
37.2
39.5
1.2
0.2

130.2
5.4
19.7
11.4
35.5
1.5
0.2

151.1
4.6
23.6
20.0
29.6
2.4
0.3

181.6
3.8
34.5
46.1
20.2
3.5
0.5

219.4
3.2
42.7
23.7
16.4
4.3
0.6

VALUATION
Book Value (INR)
Price-BV (x)
EPS (INR)
EPS Growth YoY
Price-Earnings (x)
Dividend per share (INR)
Dividend yield (%)
E: MOSL Estimates

4 November 2015

Repco Home Finance

NOTES

4 November 2015

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