Iifl Finance Limited · NSE:IIFL
Iifl Finance — Q4 FY2024 Earnings Presentation
49 slides from Iifl Finance's earnings presentation, Jun 16, 2024
Slide 1: Cover letter to stock exchanges
June 16, 2024 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot C/1, G Block, Dalal Street, Bandra - Kurla Complex, Bandra (E), Mumbai 400 001. Mumbai 400 051. BSE Scrip
Slide 2: IIFL Finance Q4FY24 profit after tax at Rs. 431 Crore, down 6% y-o-y
Annexure 1 IIFL Finance Limited Press Release For immediate publication Mumbai, India June 16, 2024 IIFL Finance Q4FY24 Results update IIFL Finance Q4FY24 profit after tax1 at Rs. 431 Crore, down 6% y-o-y For the quarter ended March 31, 2024, the Company reported net profit after tax of Rs. 431 Cr (
Slide 3: Management commentary and financial performance review
Mr. Nirmal Jain, Founder, IIFL Finance Ltd., remarked on the financial results: “The regulatory action imposing an embargo on fresh gold loans has significantly impacted our business in the last quarter and continues to do so in the current quarter. We have used this opportunity to enhance our compl
Slide 4: Business segment review
Business segment review Home Loans: At the end of the quarter, retail home loan assets grew by 26% y-o-y and 8% q-o-q to Rs 27,438 Cr. The primary focus in this segment is on affordable and non-metro housing loans. We operate out of 389 dedicated home loan branches PAN India. With this, our subsidia
Slide 5: NCD raise and appointment of independent directors
in accordance with the Companies Act, 2013 and the rules made thereunder, Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, each as amended and other applicable laws. Raised ₹500 crores through issue of non-convertible debentures on a private pl
Slide 6: About IIFL
About IIFL IIFL Group is one of the leading players in the Indian financial services space. Prior to the Composite Scheme of Arrangement (effective May 2019), IIFL Finance Limited (Erstwhile “IIFL Holdings Limited”) (Bloomberg Code: IIFL IN, NSE: IIFL, BSE: IIFL) was engaged in the business of finan
Slide 7: Performance review
Annexure 2 Performance review Quarter ended March, 2024 Bloomberg: IIFL IN (Q4FY24 & FY24) Jun 15, 2024
Slide 8: IIFL Finance (Consolidated): Q4FY24 and FY24 Results snapshot
IIFL Finance (Consolidated): Q4FY24 and FY24 Results snapshot ₹ Cr Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q FY24 FY23 Y-o-Y Loan AUM 78,960 64,638 22% 77,444 2% 78,960 64,638 22% PPOP1 989.7 760.3 30% 960.3 3% 3,664.1 2,817.7 30% PAT (pre NCI2) 430.6 457.6 (6%) 545.2 (21%) 1,974.2 1,607.5 23% PAT (post NCI2
Slide 9: IIFL Finance (Consolidated): Q4FY24 and FY24 Results
IIFL Finance (Consolidated): Q4FY24 and FY24 Results ₹ Cr Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q FY24 FY23 Y-o-Y Interest income 2,195.5 1,733.2 27% 2,083.1 5% 8,036.7 6,232.5 29% Interest expense (1,074.4) (860.6) 25% (988.5) 9% (3,882.9) (3,222.0) 21% Net interest income 1,121.0 872.7 28% 1,094.6 2% 4,1
Slide 10: IIFL Finance (Consolidated): Income Analysis
IIFL Finance (Consolidated): Income Analysis ₹ Cr Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q FY24 FY23 Y-o-Y Loan Book (Ind AS Balance sheet) 50,833 40,102 27% 47,210 8% 50,833 40,102 27% Assigned assets 16,488 16,979 (3%) 18,648 (12%) 16,488 16,979 (3%) Co-lending book 11,639 7,557 54% 11,586 0% 11,786 7,557
Slide 11: Consolidated balance sheet as at March 31, 2024
Consolidated balance sheet as at March 31, 2024 ASSETS (₹ Cr) LIABILITIES AND EQUITY (₹ Cr) 1 Financial Assets 1 Financial Liabilities (a) Cash and Bank Balances 4,246 (a) Payables 217 (b) Receivables 132 (b) Borrowings (c) Loan Assets 50,952 - NCDs 11,272 (d) Investments 4,059 - Bank Borrowings 29,
Slide 12: Update on RBI order
Update on RBI order Compliance to RBI observations 1. Cash disbursement and collection within statutory limit of ₹20,000 (section 269SS, 269T of Income Tax Act) • System restriction now in place to ensure compliance 2. Issue of certificate of gold purity & LTV parity for auction cases • The company
Slide 13: IIFL Finance (Consolidated): Key highlights
IIFL Finance (Consolidated): Key highlights AUM (₹ Cr) Income (₹ Cr) Return on assets/equity RoA RoE 6,516 78,960 5,225 20.6% 19.9% 64,638 4,041 18.4% 44,688 51,210 3,348 15.3% 37,951 2,554 11.3% 3.3% 3.4% 2.7% 1.5% 2.0% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Cost
Slide 14: IIFL Finance (Consolidated): Funding mix
IIFL Finance (Consolidated): Funding mix Borrowing (₹ Cr) Borrowing mix Cost of borrowing 10% 14% 9% 4% 9% 7% 15% 15% 45,993 10% 17% 38,691 27% 9.4% 35,586 38% 32% 27% 23% 31,393 9.1% 9.1% 26,884 8.8% 8.7% 44% 44% 48% 54% 52% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24
Slide 15: Adequate liquidity, well covered to meet obligations and sustain growth
Adequate liquidity, well covered to meet obligations and sustain growth (₹ Cr) Asset Liability Match (ALM) - Surplus across all buckets Well covered Debt Repayment Schedule 69,522 17,104 15,558 14,680 52,421 69,522 13,079 46,143 11,614 Interest Free Cash + 10,682 49,119 9,549 39,442 undrawn lines =
Slide 16: Strategic shifts to retail, secured credit to small businesses and homes
Over the last 5 years, we have made strategic shifts to focus on providing retail, secured credit to small businesses and homes Mix% Mix% Loan AUM (₹ Cr) FY20 FY21 FY22 FY23 FY24 YoY % Yield % FY20 FY24 Home Loan 12,443 14,439 17,727 21,800 27,438 26% 33% 35% 11.0% Gold Loan 9,125 13,149 16,228 20,7
Slide 17: Non performing assets have consistently been lower through cycles
Non performing assets have consistently been lower through cycles GNPA % Q4FY24 Q4FY23 YoY Q3FY24 QoQ GNPA% NNPA% Home Loan 1.19% 1.92% (0.72%) 1.60% (0.41%) 3.15% Gold Loan 3.83% 0.80% 3.03% 0.80% 3.03% 2.04% 1.98% 1.83% 1.84% Loan against property 2.68% 2.90% (0.22%) 2.66% 0.02% 1.74% 2.32% Digita
Slide 18: Listed holding NBFC with 2 major subsidiaries
IIFL Finance is listed holding NBFC with 2 major subsidiaries for housing & Micro-finance IIFL Finance (Listed) 80% 99.5% IIFL Home IIFL Finance IIFL Samasta Finance Standalone Finance Business: Business: Business: Home loans, Home Gold loans, Unsecured Microfinance, Equity (Secured MSME loans, Home
Slide 19: Reconciliation of reported consolidated results with group entities
Reconciliation of reported consolidated results with group entities IIFL Finance IIFL Home IIFL Samasta Intergroup IIFL Finance (₹ Cr) Standalone Finance* Finance adjustments Consolidated Interest income 3,053.3 2,620.8 2,200.6 162.0 8,036.7 Interest expense (1,717.2) (1,330.4) (880.4) 45.0 (3,882.9
Slide 20: IIFL Finance (Standalone)
HIF L FINANCE IIFL FINANCE (STANDALONE)
Slide 21: IIFL Finance (Standalone): Key Highlights
IIFL Finance (Standalone): Key Highlights AUM (₹ Cr) Income (₹ Cr) Return on assets/equity RoA RoE 2,491 2,633 2,765 25,573 29,250 1,860 18.5% 17.6% 19,199 21,109 1,423 16,057 11.1% 8.8% 3.3% 3.5% 4.1% 0.8% 1.5% 2.3% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Operatin
Slide 22: IIFL Finance (Standalone): Funding mix
IIFL Finance (Standalone): Funding mix Borrowing (₹ Cr) Borrowing mix Cost of borrowing 15% 17% 7% 15% Rating: AA/RWD by CRISIL AA/RWN by ICRA, 0% 25% 10% 11% 8% CARE, India Rating, Brickwork; A1+ by CRISIL, ICRA 3% 19,609 38% 25% 15,271 16,317 16,719 55% 44% 38% 12,956 9.6% 9.3% 45% 51% 9.1% 9.1% 3
Slide 23: IIFL Finance (Standalone): Liquidity update
IIFL Finance (Standalone): Liquidity update (₹ Cr) Asset Liability Match (ALM) - Surplus across all buckets Well covered Debt Repayment Schedule 29,210 22,604 6,710 29,210 6,121 21,848 5,871 5,528 21,767 4,953 14,705 4,665 Interest 18,315 4,286 Free Cash + 3,456 11,480 undrawn lines = 3,169 8,617 ₹1
Slide 24: IIFL Finance (Standalone): Key business units
IIFL Finance (Standalone): Key business units Mix% Mix% ATS Loan AUM (₹ Cr) FY20 FY21 FY22 FY23 FY24 YoY % Yield FY20 FY24 (₹ lakhs) Gold loan 9,125 13,149 16,228 20,733 23,354 13% 57% 80% 19.0% 0.9 Digital loan 2,923 2,025 1,884 2,512 4,302 71% 18% 15% 21.9% 1.2 Home equity - - - - 239 - 0% 1% 14.0
Slide 25: IIFL Finance (Standalone): Competitive edge
IIFL Finance (Standalone): Competitive edge Strong visibility & Own network & people Digital technology brand recall • Aggressive investment in brand • Industry first proprietary tablet • Over 2,752 dedicated gold loan awareness, visibility and based fully digitized processes for branches spread acr
Slide 26: IIFL Home Finance
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Slide 27: IIFL Home Finance: Key highlights
IIFL Home Finance: Key highlights AUM (₹ Cr) Income (₹ Cr) Return on assets/equity RoA RoE 35,499 24.9% 28,512 20.3% 23,617 1,985 17.6% 16.9% 18,495 20,694 1,566 13.8% 1,010 1,162 711 4.4% 3.6% 3.9% 1.8% 2.7% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Operating expens
Slide 28: IIFL Home Finance: Funding mix
IIFL Home Finance: Funding mix Borrowing (₹ Cr) Borrowing mix Cost of borrowing 6% 5% 4% 1% 3% Rating: AA/RWD by CRISIL AA/RWN by ICRA, 16% 22% 20% 21% 27% CARE, India Rating, Brickwork; A1+ by CRISIL, ICRA 17,481 21% 14,776 18% 22% 22% 14,061 24% 11,973 12,705 9.1% 57% 56% 55% 56% 8.4% 46% 8.3% 7.9
Slide 29: IIFL Home Finance: Liquidity update
IIFL Home Finance: Liquidity update (₹ Cr) Asset Liability Match (ALM) - Surplus across all buckets Well covered Debt Repayment Schedule 28,911 4,543 28,911 3,974 18,477 Free Cash + 3,734 undrawn lines = 2,831 12,983 18,330 2,467 Interest ₹1,961 Cr 2,289 1,912 12,497 1,540 6,214 1,275 4,033 877 2,95
Slide 30: IIFL Home Finance: Key business units
IIFL Home Finance: Key business units Mix% Mix% ATS Loan AUM (₹ Cr) FY20 FY21 FY22 FY23 FY24 YoY % Yield FY20 FY24 (₹ lakhs) Affordable home loan 12,443 14,439 17,727 21,800 27,438 26% 67% 77% 11.0% 15 Home equity (Secured business loan) 4,882 5,381 5,346 5,905 7,250 23% 26% 20% 18.4% 11 Affordable
Slide 31: IIFL Home Finance: Competitive edge
IIFL Home Finance: Competitive edge Low-risk funding mix Operating model Technology model • Healthy share of Direct • Achieving digital maturity with • Proprietary technologies and Assignment and Co-lending end-to-end digital processes for continuous digital innovation in along with direct funding f
Slide 32: IIFL Samasta Finance
HIF L FINANCE IIFL SAMASTA FINANCE
Slide 33: IIFL Samasta Finance: Key highlights
IIFL Samasta Finance: Key highlights AUM (₹ Cr) Income (₹ Cr) Return on assets/equity RoA RoE 14,211 1,888 29.4% 31.5% 10,552 1,154 6,484 4,796 616 11.8% 11.4% 5.0% 3,400 404 435 4.8% 6.3% 1.9% 0.9% 1.7% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Operating expenses to
Slide 34: IIFL Samasta Finance: Funding mix
IIFL Samasta Finance: Funding mix Borrowing (₹ Cr) Borrowing mix Cost of borrowing 1% 3% Rating: AA/RWD by CRISIL AA/RWN by India 8,903 26% 17% 16% 16% 29% Rating AA/Stable by ACUITE 7,196 11% 12% 17% 5,208 3,418 74% 10.7% 10.6% 70% 72% 72% 65% 10.4% 1,956 10.0% 10.0% FY20 FY21 FY22 FY23 FY24 FY20 F
Slide 35: IIFL Samasta Finance: Liquidity update
IIFL Samasta Finance: Liquidity update (₹ Cr) Asset Liability Match (ALM) - Surplus across all buckets Well covered Debt Repayment Schedule 11,340 11,312 11,400 11,400 5,463 5,851 5,075 4,721 9,022 Free Cash + 4,194 7,108 8,629 Interest undrawn lines = 3,728 ₹3,211 Cr 3,352 4,204 2,769 5,666 2,227 1
Slide 36: IIFL Samasta Finance: Key business units
IIFL Samasta Finance: Key business units Mix% Mix% ATS Loan AUM (₹ Cr) FY20 FY21 FY22 FY23 FY24 YoY % Yield FY20 FY24 (₹ lakhs) Microfinance 3,289 4,440 5,821 9,072 11,891 31% 97% 84% 24.5% 0.4 Home equity (Secured business loan) 21 58 329 767 1,118 46% 1% 8% 22.8% 5.1 Dairy cattle loan 82 105 175 4
Slide 37: IIFL Samasta Finance: Competitive edge
IIFL Samasta Finance: Competitive edge Balanced portfolio Strong Technology Focus Best-in-Class Asset Quality • Extensive focus on implementing • Industry leading asset quality • Growing Microfinance Portfolio technology across processes and across the key states of presence; with balanced mix of No
Slide 38: Corporate Information
IIFL FINANCE | way, CORPORATE INFORMATION
Slide 39: Uniquely placed to dominate non banking retail lending
Uniquely placed to dominate non banking retail lending Retail Lending Strong collateral or cash flow backed loans, in segments with robust growth potential Phygital Partnerships Physical Digital Banks Fintechs Network of 4,801 Innovative digital Unique capability to Harnessing fintech branches help
Slide 40: Marquee global investors and shareholding pattern
Since inception, marquee global investors have reposed faith in our business & management Shareholding Pattern % holding Promoters 24.9 Institutional Investors 52.7 (Formerly CDC Group) Fairfax 15.2 2010 2016 Capital Group 7.6 DSP MF 4.0 Bank Muscat India Fund 3.3 Nomura 3.0 2007 2011 2022 Vanguard
Slide 41: Distinguished board of directors in the company & its subsidiaries
Distinguished board of directors in the company & its subsidiaries Govinda Rajulu A K Purwar R Venkataraman* Srinivasan Sridhar Nirmal Jain* Chintala Chairman & Non- Joint Managing Chairman & Non- Managing Director Chairman & Executive Director Director Executive Director Independent Director Former
Slide 42: Experienced senior management
Experienced senior management IIFL Finance IIFL Home Finance IIFL Samasta Finance Kapish Jain N Venkatesh Chartered Accountant, Cost Monu Ratra Strategic leadership Accountant and Company Qualified architect and MBA Program in microfinance at Secretary Harvard Group Chief Financial Officer ED & CEO
Slide 43: Environment, Social & Governance - Environment
Environment, Social & Governance - Environment Adopting environmentally conscious solutions in our business initiatives as well IIFL has signed a US$ 68 million Pioneered Green Building concept in loan with Asian Development Bank (ADB) to partnership with housing developers improve funding to afford
Slide 44: Environment, Social & Governance - Social
Environment, Social & Governance - Social IIFL is firmly committed to support economic activity and financial inclusion through its loan offerings while adapting to changes in the external environment. ▪ 57.8% of gold loan disbursed are of less than ₹ 50,000 value ▪ 91% of the Unsecured MSME digital
Slide 45: Environment, Social & Governance - Social
Environment, Social & Governance - Social CSR projects continue with creative use of technology Smart Shaala – Rajasthan (3 Districts) Skill Development Training in ‘Chef Trade’ for 160 Youths – Kupwara, Kashmir ▪ IIFL Foundation, has implemented the biggest TV based ▪ The programme aims to provide
Slide 46: Environment, Social & Governance - Governance
Environment, Social & Governance - Governance Establishing vision, mission and values and determining, reviewing the goals and policies of the Company from time to time Promote sound corporate governance Corporate policies and guidelines: Board Diversity practices, ethical standards, and compliance
Slide 47: Our ESG Impact
Our ESG Impact 41 Note: For more refer our Sustainability report – click here
Slide 48: Link to databook
Link to databook Data reported across previous quarters is now continued to be reported in a Data Book, maintained in an excel format on our website. The Link for the data book is hosted below. Click here to download databook Click here to download databook 42
Slide 49: Thank you
Thank you Published in June 2024 IIFL Finance Ltd. All rights reserved. Regd. Off: IIFL House, Sun Infotech Park, Road No. 16V, Plot No.B-23, Thane Industrial Area, Wagle Estate, Thane – 400604. This report is for information purposes only and does not construe to be any investment, legal or taxatio