Iifl Finance Limited · NSE:IIFL
Iifl Finance — Q2 FY2020 Earnings Presentation
41 slides from Iifl Finance's earnings presentation, Oct 24, 2019
Slide 1: IIFL Finance cover letter to exchanges
IIFL FINANCE October 23, 2019 The Manager, Listing Department, The Manager, BSE Limited, Listing Department, Phiroze Jeejeebhoy Tower, The National Stock Exchange of India Ltd., Dalai Street, Exchange Plaza, 5 Floor, Plot C/1, G Block, Mumbai 400 001. Bandra - Kuria Complex, Bandra (E), BSE Scrip Co
Slide 2: Press Release: Results update
IIFL Finance Limited (formerly “IIFL Holdings Limited”) Press Release For immediate publication Mumbai, India October 23, 2019 Results update India Infoline Finance Limited Results -Profit after tax for Q2FY20 at `173 Cr (up 8% y-o-y) and H1FY20 at `354 Cr (down 1% y-o-y) -Income# for Q2FY20 at `590
Slide 3: Press release: AUM, segments and ratios
India Infoline Finance had loan assets under management of Rs 35,007 Cr as at September 30, 2019, with the home loans segment constituting 35%, business loans 23%, gold 20% and microfinance 8% of the total AUM. The company had a widespread presence of 2,309 branches as at the end of the quarter, spa
Slide 4: Comfortable liquidity position and awards
Comfortable liquidity position During the quarter, Rs. 300 Cr. was raised through the on-lending route with banks. The Company successfully raised Rs. 244 Cr. from tranche 2 of public issue of bonds. CRISIL has rated the instrument as AA/Stable, which indicates that the instruments are considered to
Slide 5: About IIFL
About IIFL IIFL Finance Limited (Erstwhile “IIFL Holdings Limited”) (Bloomberg Code: IIFL IN, NSE: IIFL, BSE: IIFL) 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 was engaged in the busines
Slide 6: India Infoline Finance Limited
For the quarter ended September 30, 2019 India Infoline Finance Limited Subsidiary of IIFL Finance Limited October 23, 2019 1
Slide 7: Highlights for the Quarter
Highlights for the Quarter ● Loan AUM stood at `35,007 Cr, a marginal growth of 9% y-o-y, however core segments of Home Loans, Gold loans and Microfinance have posted strong growth of 16%, 38% and 87% y-o-y respectively. ● 199 new branches were added in this quarter, taking the total to 2,309, emplo
Slide 8: Performance Overview
I: Performance Overview (i) Q1FY20 Results 3 (iii) Overview of Business 12 (iii)Product Segments 22 II: Ownership, Management and Governance 31 30 3
Slide 9: India Infoline Finance – Consolidated results (as per IND AS)
India Infoline Finance – Consolidated results (as per IND AS) Quarter ended September 2019 (NBFC, HFC and MFI) ` Cr Q2FY20 Q2FY19 Y-o-Y Q1FY20 Q-o-Q H1FY20 H1FY19 Y-oY Loan book 24,907 28,119 (11%) 25,792 (3%) 24,907 28,119 (11%) Assigned assets 10,100 3,924 157% 9,128 11% 10,100 3,924 157% Assets u
Slide 10: India Infoline Finance – Consolidated Balance Sheet
India Infoline Finance – Consolidated Balance Sheet Quarter ended September 2019 (NBFC, HFC and MFI) ` In Crs ` In Crs As at As at ASSETS Sep 30 2019 LIABILITIES AND EQUITY Sep 30 2019 Unaudited Unaudited 1 Financial Assets 1 Financial Liabilities (a) Cash and cash equivalents 1,419.0 (a) Derivative
Slide 11: Sharper focus on small ticket retail loans
Sharper focus on small ticket retail loans Quarter ended September 2019 AUM break-up (%) AUM (₹ Cr) Q2FY20 Y-o-Y Q-o-Q Capital ● Loan assets growth Market Home Loans 12,256 16% (1%) Micro- driven by small ticket Finance, finance, 1% Business Loans 8,167 (7%) (2%) 8% retail home loans, gold Developer
Slide 12: Funding costs rise, boarding yields rise in tandem
Funding costs rise, boarding yields rise in tandem Quarter ended September 2019 Cost of Funds (%) NIM (%) ● Capital adequacy at 21.9%, well above the minimum requirement 11.1% 8.1% ● Tier I Capital Adequacy 10.2% 9.4% 9.4% 7.1% 6.5% 7.2% 8.9% 8.7% 6.2% 6.3% 6.5% 8.4% Ratio stands at 18.2% against mi
Slide 13: Through cycles, maintaining superior quality of assets
Through cycles, maintaining superior quality of assets Quarter ended September 2019 Gross NPA (%) Net NPA (%) ● GNPA as at Q2FY20, was 2.5% and NNPA 180 150 120 90 DPD 90 DPD 180 150 120 90 DPD 90 DPD DPD DPD DPD DPD DPD DPD was 1.5% ● Under Ind AS, provision 1.51% 2.51% coverage (incl. standard 2.2
Slide 14: Stable asset quality across products
Stable asset quality across products Quarter ended September 2019 Credit quality has been steady across key product segments Core growth segments Synergistic segments Home loans Business loans Developer & Construction finance Gross NPAs (%) Gross NPAs (%) Gross NPAs (%) 4.8% 4.4% 1.4% 3.7% 2.7% 2.5%
Slide 15: Comfortable liquidity position
Comfortable liquidity position Quarter ended September 2019 Positive ALM mismatch across all buckets and comfortable liquidity position During last quarter ₹ Cr Cumulative Outflow Cumulative inflow Surplus [] Cumulative mismatch Continue to maintain long- as a % of cumulative outflow term rating of
Slide 16: Well diversified funding mix
Well diversified funding mix Quarter ended September 2019 Resource profile is well diversified, with increasing share of assigned assets and bank loans Split of funding Borrowings 15,420 20,176 28,665 35,002 34,260 17,230 (₹ Cr) CBLO 4% 2% 0% Commercial Paper 16% 12% 18% 17% 30% 33% 7% 7% Assignment
Slide 17: Overview of Business
I: Performance Overview (i) Q1FY20 Results (iii) Overview of Business (iii)Product Segments II: Ownership, Management and Governance 30 12
Slide 18: Top-tier NBFC in India
Top-tier NBFC in India Company snapshot ₹ 35,007 Cr 87% Retail 2,309 18,523 Assets under Management 13% Wholesale Branches Employees 2.3%* 18.2% / 21.9% 2.51% / 1.51% 94% Return on Assets Tier 1 / Total Capital Adequacy Gross NPAs / Net NPAs Provisioning of GNPA and 15.5%* Return on Equity Unique ad
Slide 19: Our Product Portfolio
Our Product Portfolio As on September 30, 2019 Strategic focus on segments that are core strengths and have inter se synergies AUM (₹ Cr) Target customers Unique features Salaried / Self-employed Focused on affordable and non-metro housing segments 12,256 individuals Leverages underwriting ski
Slide 20: Increasing diversification across products and customers
Increasing diversification across products and customers Business mix shifting towards a diversified mix of superior quality retail assets Diversified portfolio disperses exposure and balances cyclical vagaries AUM (₹ Cr) 3,289 9,867 16,176 22,281 34,904 35,007 4% 1% 1% 8% 7% 8% 6% 10% 14% Microfina
Slide 21: Vast physical network spread across the country
Vast physical network spread across the country 85% of branches are in Tier 2 and Tier 3 locations Wide spread network across 25 states and over 600 locations Number of branches 2,309 1,947 1,161 191 Mar'11 Mar'15 Mar'19 Sep'19 Regional split of branches 35% South North 39% East West 11% 15% Branc
Slide 22: Ability to leverage physical presence and cross-sell
Ability to leverage physical presence and cross-sell One stop shop for retail customers, building relationship for life HOME LOAN MFI HEALTH INSURANCE 220k BUSINESS LOAN GOLD LOAN 12lakhs FIXED DEPOSIT 607k 28 lakhs LIFE INSURANCE CURRENCIES ₹ MUTUAL FUND DERIVATIVES EQUITIES FINANCIAL COMMODITIES P
Slide 23: End-to-end digitization through multiple innovations
End-to-end digitization through multiple innovations SOURCING Propensity-based targeting built on machine learning model Leads generated are communicated to individual branches to generate action High conversions: More than 15x of natural response rate ONBOARDING Tablet based on-boarding pro
Slide 24: Leveraging technology for superior credit underwriting
Leveraging technology for superior credit underwriting Ongoing Portfolio Tenure Norms Policy Checks Monitoring Delinquency Automated Driver Analysis Pricing Grid RISK MONITORING Work Experience Check Income Checks ITR Norm Check Loan Servicing Customer Service Bureau Checks Default Check LOAN MANAGE
Slide 25: Strong risk management framework under the Board's direct supervision
Strong risk management framework under the Board’s direct supervision Multi-level risk governance for efficient monitoring and control of product and entity level risks Scope Board of directors Authority Risk Strategy & Advisory on Risk Appetite Empower Approve large-ticket cases Risk Board Cred
Slide 26: Product Segments
I: Performance Overview (i) Q1FY20 Results (iii) Overview of Business (iii)Product Segments II: Ownership, Management and Governance 30 21
Slide 27: Home loans – Product overview
Home loans – Product overview Affordable home loan Product Non-metro housing loan offering For home purchase, home renovation, home construction and plot purchase Affordable home loan: Salaried and self employed segment wherein household income is below ₹75k pm and are buying Customer proper
Slide 28: Home loans – Financial overview
Home loans – Financial overview Assets Under Management (₹ Crore) Boarding Yield (%) Self Employed Salaried 800 2,700 5,300 8,579 12,197 12,256 21% 12.0% 11.4% 35% 41% 10.3% 10.1% 48% 54% 56% 9.8% 9.3% 79% 65% 59% 52% 46% 44% FY15 FY16 FY17 FY18 FY19 Q2FY20 FY15 FY16 FY17 FY18 FY19 Q2FY20 Average Ti
Slide 29: Business loans – Product overview
Business loans – Product overview Product For business loans backed by cash flows offering Collateral must for loans of more than ₹ 50 Lakh; LTV up to 70% Customer MSME customers having established business performance segments Lending to manufacturing, trading and service sectors for workin
Slide 30: Business loans – Financial overview
Business loans – Financial overview Assets Under Management (₹ Crore) Boarding Yield (%) 8,117 8,167 18.8% 7,361 16.3% 6,000 14.3% 13.4% 13.5% 14.3% 5,100 4,000 FY15 FY16 FY17 FY18 FY19 Q2FY20 FY15 FY16 FY17 FY18 FY19 Q2FY20 Onboarding Average Ticket Size (₹ Lakhs) Gross NPAs (%) 83.0 89.0 83.0 3.1%
Slide 31: Gold loans – Product overview
Gold loans – Product overview Product Loan against jewellery provided for personal & business use; offering On-boarding LTV < 70% Customer Salaried, self-employed and MSME businesses segments 70% are repeat customers AUM Gross/Net NPA Onboarding Tenor ₹ 6,887 Crore 0.7% / 0.5% Average Ticket
Slide 32: Gold loans – Financial overview
Gold loans – Financial overview Assets Under Management (₹ Crore) Boarding Yield (%) 6,887 6,195 21.0% 19.2% 19.2% 18.7% 18.1% 18.1% 3,885 4,037 2,914 2,910 FY15 FY16 FY17 FY18 FY19 Q2FY20 FY15 FY16 FY17 FY18 FY19 Q2FY20 Onboarding Average Ticket Size (₹ ‘000s) Gross NPAs (%) 58 53 53 46 48 43 0.8%
Slide 33: Microfinance – Product overview
Microfinance – Product overview Product Small-ticket loans for purpose of income generation activities offering Customer Target segment is rural and semi-urban self-employed women formed into joint liability groups segments AUM Gross/Net NPAs States Total Customers Tenor ₹ 2,709 Crore 1.0% / 0.2
Slide 34: Microfinance – Financial overview
Microfinance – Financial overview Assets Under Management (₹ Crore) Boarding Yield (%) IIFL Finance acquired control IIFL Finance acquired control 2,709 2,286 26.5% 25.9% 24.4% 22.6% 22.0% 21.6% 840 110 238 58 FY15 FY16 FY17 FY18 FY19 Q2FY20 FY15 FY16 FY17 FY18 FY19 Q2FY20 Onboarding Average Ticket
Slide 35: Ownership, Management and Governance
I: Performance Overview (i) Q1FY20 Results (iii) Overview of Business (iii)Product Segments II: Ownership, Management and Governance 30 30
Slide 36: Management team and Marquee Investors
Management team with rich domain Marquee Investors experience and ownership India Infoline Finance IIFL Finance Limited Public & Chief Executive Officer Sumit Bali Others 11.1% Chief Financial Officer Prabodh Agrawal NRI 7.2% Promoters Chief Risk Officer Anujeet Kudva Domestic 29.2% Institution Comp
Slide 37: Distinguished Board of Directors
Distinguished Board of Directors India Infoline Finance– Board of Directors V. K. Chopra, Chairman Nirmal Jain, Whole-time Director Chartered Accountant and Former Whole-Time MBA from IIM Ahmedabad, rank-holder CA Member, SEBI and Cost Accountant. Worked with Unilever for Former Chairman & MD
Slide 38: IIFL's brand and credibility substantiated by multiple awards
IIFL’s brand and credibility are substantiated by multiple awards IIFL Finance won the “Best IIFL Finance ET Now & Fintech NBFC of the Year Award'' at has been awarded as a Broadcast One the India NBFC Excellence “Great Place to Work” recognised Awards 2019 presented by certification from March 2019
Slide 39: Environment, Social and Governance (ESG) Initiatives
Environment, Social and Governance (ESG) Initiatives • KUTUMB E • Digital process • Green communication • Financial Inclusion S • First House- Housing for All • Affordable Housing • Women Empowerment • Diversity at Work Place • Employees Health and Safety • CSR activities Employees Organization • Le
Slide 40: Corporate Social Responsibility
Corporate Social Responsibility Better world Foundation - Gurugram Financial Literacy Centre–West Bengal,Odisha & Tripura IIFL Foundation has extended financial support to ‘Better World Under IIFL foundation’s financial literacy initiative, more than 100 Foundation’ to conduct schooling in open spac
Slide 41: Thank you
Thank you Published in October 2019 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 taxa