#1Investor Update Q2 FY 2024 चायाः LICHFL LIC HOUSING FINANCE LTD#2LICHFL: A Journey of 34 Years...... नवग्रहाय अर्थसहाय LICHFL LIC HOUSING FINANCE LTD 2,50,000 Cr in Assets 2015 2019 Crossed Crossed 2,00,000 Cr in Assets & 2000 Cr Profit Crosses 1 lakh cr in portfolio 2022 2017 Crossed 150,000 cr in assets 2011 Crossed 2013 50,000 Cr loan Crossed 1000 cr profit & portfolio 75,000 Cr assets 2007 2009 Launch of Fixed Crossed 500 crs profit Deposit Program "Sanchay Deposit" 2004 2002 GDR Issue AAA Rating 1994 IPO 1989 Incorporated स्वगृहाय अर्थसहायः 2#3Awards & Achievements 2019 - Voted as the 'Brand of the Decade 2019' by BARC Asia - NSE for Best Issuer on EBP 2022 -"Best Organisation for Women 2022" award by 'The Economic Times' -"BEST CSR" Award in the 11th Edition of Global CSR Excellence & Leadership Awards 2015 - Best Housing Finance Co. by BFSI Awards - Best data quality in HFC by CIBIL 2017 - Outlook Money- Best HFC' - Business Today BFSI Best CEO - NSE for highest Debt Issuance 2016 - Outlook Money-Best HFC - Best HFC by ABP News - Asia Pacific Entrepreneurship Award -Power Brands Awards by Franchise India वहाय अर्था LIC HFL LIC HOUSING FINANCE LTD#4Shareholding Pattern MFs & others 23.43% September 2023 Public 9,64% FII & other Overseas Investor 21.69% वाय अर्थ LIC HFL LICHFL LIC HOUSING FINANCE LTD Top 10 Shareholders Shareholder Life Insurance Corporation Of India Government Pension Fund Global LIC 45.24% Bank Muscat India Fund SBI SMALL CAP FUND % 45.24% 2.81% 2.09% 1.40% ICICI PRUDENTIAL VALUE DISCOVERY FUND 1.32% MIRAE ASSET EMERGING BLUECHIP FUND 1.30% HDFC LIFE INSURANCE COMPANY LIMITED 1.29% FIDELITY FUNDS - ASIAN SMALLER COMPANIES POOL 0.84% NATIONAL INSURANCE COMPANY LTD 0.80% THE PRUDENTIAL ASSURANCE COMPANY LIMITED 0.80% 4#5Executive Summary – Q2 FY 24 Revenue from Operations Up by 33% Profit After Tax Up by 290% 1188.05 वहाय अर्था LIC HFL LIC HOUSING FINANCE LTD 8000 6753.00 5086.00 1000 6000 700 4000 304.97 400 2000 100 0 Q2 FY 2023 Q2 FY 2024 Q2 FY 2023 Q2 FY 2024 Net Interest Income Up by 83% Outstanding Portfolio Up by 6% 2,500.00 2107.00 300000 277987 262336 2,000.00 250000 1,500.00 1150.00 200000 1,000.00 150000 500.00 100000 Q2 FY 2023 Q2 FY2024 Q2FY2023 Q2FY2024 5#6Executive Summary - Q2 FY 24 Q2 FY24 PAT at Rs. 1188.05 cr as against Rs 304.97 cr, up by 290% वहाय अर्था LIC HFL LIC HOUSING FINANCE LTD Q2 FY24 Total Revenue from operations Rs.6753 cr as against Rs.5086 cr, up by 33%. Outstanding Loan portfolio up by 6% to Rs. 277987 cr ■ Individual Home Loan Portfolio up by 8% to Rs. 234509 Cr Q2FY 24 Loan Disbursements Rs. 14665 cr against Rs. 16786 cr ◉ Individual Home Loan Disbursements Rs. 12516 cr as against Rs. 14300 cr. Net Interest Income Rs. 2107 cr as against Rs. 1150 cr as on 30.09.2022, growth of 83 %. Net Interest Margins 3.04% for Q2 FY24 as against 1.78 % for Q2 FY23. Stage 3 EAD at 4.33% as against 4.90% as on 30.09.2022. Total ECL provision stood at Rs. 6512 Cr as on 30.09.2023. During the quarter, the Company has done technical write off of Rs. 925.05 cr. 6#7Update- Last 5 Years Disbursement (Rs. Cr) CAGR 4% Loan Portfolio (Rs.cr) CAGR 9% **LIC HFL अ LIC HOUSING FINANCE LTD 61848 53908 55223 64115 300000 60000 232003 251120 275047 46936 250000 210578 50000 194646 200000 40000 30000 150000 20000 100000 10000 50000 0 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Income (Rs. cr) CAGR 7% Profit After Tax (Rs. cr) CAGR 4% 25000 22674 3500 20000 17365 19670 19848 19953 2734 2891 3000 2431 2401 2500 2288 15000 2000 10000 1500 1000 5000 500 0 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 7#8Update- Last 5 Years Gross & Net NPAs# Total Provisions* (Rs cr) नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD 7230 5% 4% 3% 2% do do do do do do do 6% 5.35% 7500 4.49% 5839 4.01% □ Gross 6000 .72% 3971 2.86% 2.70% 2.70% Net 4500 1.5408% 1.99% 2612 3000 1659 1% 1500 0% 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Operating Expense to Total Income Profit per employee (Rs. lacs) 150 112.66 117.43 105.28 100.41 100 92.73 4.75% 4.36% 5% 2.74% 3.14% 3.53% 50 0 90 0% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 *#As per IGAAP *ECL Provisions of Stage 1,2 and 3 8#9Update- Last 5 Years EPS (Rs) (Rs 2/- pd up) Book Value (Rs) (Rs 2/- pd up) नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD 54.18 492.38 60 48.16 47.59 52.56 402.35 414.88 50 43.14 360.47 400 322.19 40 30 20 10 0 LL 200 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Return on Avg Equity Return on Avg Loan Assets 20% 2% 16.00% 14.00% 14.00% 1.34% 11.00% 12.00% 1.18% 1.24% 0.95% 1.10% 10% 1% 0% 0% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023#10Large geographic presence • 9 Regional Offices Corporate office Regional offices • 23 Back Offices Back offices • 44 Cluster Offices Amritsar Jalandhar ° Ludhiana O Bhatindambala o o Hisar Patiala • Dehradun Karnal Noida Gurgaon New Delhi Faridabadoo Ghaziabad Shimla O Operating offices Chandigarh • 314 Area Offices Meerut o Haldwani • Rep office in Dubai नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD Thane Mumbai ° Vashi 0° Pune O Kolhapur ° Gulburga O Satara Kurnool • Belgaum o 0 ° ° ° Panjim ° ° Bellary Hubli Oo Hyderabad ° • Bareilly O Bikaner OO Jaipur Agra ° OGorakhpur Jodhpur O Kota OOAjmer ●Lucknow Udaipur ° Gwalior ° Kanpur O Patna Gangtok O O Siliguri Jorhat • O Guwahati ° O Malda Silchar • Ahmedabad Allahabad ° OGandhidham ° O Rajkot O Vadodara 0° Bhopal Indore O Varanasi Dhanbad OBehrampur O Ranchi Durgapur Jamshedpur Kolkata • Surat Nallasopara ° • Vapi ° • Kalyan O Jalgaon Jabalpur Nagpur Bilaspur Raipur ° Durg-Bhilai Nasik Aurangabad Warangal Jogeshwari ° • Rourkela Coverage of more than 450 centres • 2406 Employees Widening footprint...improved efficiencies. *Cuttack Bhubaneshwar Year ° Visakapatnam No of Marketing No of Back offices No of Regional No of Employees Lon Portfolio Rajahmundry Vijayawada Kakinada Offices Offices Rs cr Anantapur Guntur ° ○ Tirupati Bengaluru .. Mangalore O Kannur o OMysore OHassan Thrissur ° o Vellore O Salem Kozhikode Erode Tiruchirapalli Palghat Ernakulam Kottayam O Thiruvananthapuram ° ° Nellore Chennai 2008 125 14 6 985 21936 O Hosur 2013 194 16 7 1446 77812 Coimbatore ° • Pondicherry ° Thanjavur 2020 282 24 9 2392 210578 Madurai Tirumangalam Kollam Nagercoil 2023 281 24 9 2462 275047#11Distribution Network **LIC HFL अ LIC HOUSING FINANCE LTD 314 Marketing Offices New Marketing Channel HOME LOAN AGENTS (HLAs) (Agents of LIC) DIRECT SALES AGENTS (DSAs) (Small Firms/Companies etc) CUSTOMER RELATIONS ASSOCIATES (CRAS) (Individual Agents of the Company) 46 branches of LICHFL Financial Services (100% subsidiary of LICHFL) DIRECT MARKETING EXECUTIVES (Captive Marketing Channel) *Online Loan approvals during H1FY24 were Rs.837 Cr#12Origination Pattern & Average Ticket Size Customer Type (No.) 11% 89% Originations by source 10% 7% 14% 3% 16% 50% नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD ■Salaried ■ Self Employed Incremental Ticket Size (Rs lacs) ■HLA ■DSA CRA DIRECT DME Corporate Agent Top 8 cities & Others 29.0 28.0 27.0 26.0 25.0 24.0 23.0 22.0 21.0 H1FY23 H1FY24 57% 219 Offices 43% 95 Offices Top 8 cities ■ Others 12#13Loan Book Composition Non-Housing. Individual 9.8% NHC-Project Loans 4.5% NHC-Others 3.1% Individual Home Loans 82.6% Non-Housing. Individual 9.8% NHC-Project Loans 3.5% NHC-Others 2.3% Individual Home Loans 84.4% 30.09.2022 O/s Portfolio Rs. 262336 cr 30.09.2023 O/s Portfolio Rs. 277987 cr नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD#14Individual Loans - Portfolio Stats **LIC HFL अ LIC HOUSING FINANCE LTD Pure Floating Rate Loans To Outstanding Portfolio Loan To Value Ratio On Incremental Sanctions As of FY22 95% For FY22 48% As of FY23 97% For FY23 47% As of H1FY24 99% For H1FY24 52% Prepayment Lump Sum/ opening book Installment to Net Income Ratio On Incremental Sanctions For FY22 10.9% For FY22 29% For FY23 9.0% For FY23 30% For H1FY24 10.3% For H1FY24 28% 14#15Financial Highlights नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD Q2FY2024 Q2FY2023 Return on Average Equity (%) Return on Average Assets (%) Earnings per share (on Rs 2 pd up) Capital Adequacy Ratio 16% 5% 1.71% 0.47% 21.60 5.54 March 2023 March 2022 Tier I 16.56 16.23 Tier II 1.66 1.85 Total 18.23 18.08 15#16Executive Summary – Q2/FY24 - Particulars ***LIC HFL अ LIC HOUSING FINANCE LTD Var Q2 Q2 Var H1 H1 FY24 (Rs. Cr) FY23 (Rs. Cr) FY24 FY23 (Rs. (Rs. Cr) Cr) Revenue from Operations 33% 6752.83 5085.54 30% 13499.34 10371.00 Finance cost Net Interest Income 18% 4600.02 3899.53 20% 9094.25 7557.28 83% 2106.62 1149.77 57% 4316.06 2742.25 Impairment on Financial Instruments and Net Loss on De-recognition of Financial Instruments -26% 419.21 565.80 -11% 780.02 873.53 Profit before Tax Tax Expense Net Profit 291% 1480.06 378.85 106% 3129.05 1519.21 295% 292.01 73.88 114% 617.34 288.76 290% 1188.05 304.97 104% 2511.71 1230.45 16#17Executive Summary - Q2/FY24 Particulars **LIC HFL अ LIC HOUSING FINANCE LTD Rs. cr Q2 Q2 Var Var H1FY24 H1FY23 FY24 FY23 Disbursements Individual Housing Loan (IHL) -12% 12516 14300 -20% 21935 27433 Non-Housing Individual (NHI) -16% 1645 1964 -25% 2735 3639 Non-Housing Commercial (NHC) -38% 71 115 -17% 167 200 Project Finance (PF) 6% 433 407 -4% 684 716 Total -13% 14665 16786 -20% 25521 31988 Outstanding Portfolio Individual 7% 268395 250617 Project -18% 9592 11719 Total 6% 277987 262336 Net Interest Margins(%) Weighted average cost of funds Yield on advances annualised Spreads 3.04% 1.78% 3.12% 2.14% 7.66% 7.10% 10.04% 8.60% 2.38% 1.50%#18Liability Profile as on 30.09.2023 **LIC HFL अ LIC HOUSING FINANCE LTD Source Wtd Outstanding Borrowings - Rs. 243606 cr Avg CP Cost Tier II 4% 1% Deposits 5% (%) NHB 4% Bank (including NHB) 7.81% Bank 33% Non Convertible Debenture 7.57% Tier II 7.30% Commercial Paper 7.77% Deposits 7.37% Total 7.66% During Q2 FY24, Incremental Cost of Funds was 7.73% NCD 53%#19Change in Liability Mix- last 4 yrs नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD 100% 90% 80% 70% 60% 50% 40% 30% 20% Others ■Deposit NHB 10% Bank 0% NCD FY21 FY22 FY23 Q1FY24 Q2FY24 6.93% 6.52% 7.63% 7.62% 7.66% Wtd. Avg. cost of Funds 19#20Yield & Cost of Funds on portfolio 12.00% 10.00% 8.60% 8.00% 6.00% 4.00% 2.00% 7.10% 10.04% 7.66% 0.00% H1FY23 H1FY24 Yield on Advances on 8.60% 10.04% Portfolio Wtd Avg cost of funds on 7.10% 7.66% Total Borrowed Funds नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD#21NIM'S 4.00% 3.50% 3.00% 2.50% 2.34% 2.00% 2.00% 1.50% 1.00% Q2FY21 Q2Y22 Q2FY 23 1.78% Q2 FY 24 21 3.04% नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD#22Classification of Assets ***LIC HFL वग्रहाय अर्थ LIC HOUSING FINANCE LTD Exposure At Default % Sept-23 Stage 1 90.59 % Sept-22 91.10 % Stage 2 5.07 % 4.00% Stage 3 4.33 % 4.90 % Total 100 % 100% ECL Provision Sept-23 Stage 1 Rs. 637.34 cr Stage 2 Rs. 916.51 cr Stage 3 Rs. 4957.98 cr Stage 3-PCR 41% Sept-22 Rs. 141.80 cr Rs. 758.06 cr Rs. 5622.03 cr 44% 22 22#23Thank you नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD DISCLAIMER This presentation is made purely for information. We have attempted to provide relevant information which we believe will help in knowing the Company. The users may use their own judgment and are advised to make their own calculations before deciding on any matter based on 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 not taken by the viewers or the users of this presentation or for any claims, losses etc. 23