Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — FY2014 Earnings Presentation
34 slides from Sammaan Capital's earnings presentation, Apr 23, 2014
Slide 1: Audited Financial Results – FY 2013-14
Indiabulls Housing Finance Limited (CIN: L65922DL2005PLC136029) Audited Financial Results – FY 2013-14 April 23, 2014
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document contains certain forward-looking statements based on current expectations of Indiabulls management. Actual results may vary significantly from the forward-looking statements in this document due to various risks and uncertainties. These risks and uncertainties in
Slide 3: Contents
Contents Pg. No. 1. Business Update 5 2. Indian Mortgage Market 9 3. Financial and Operational Highlights 13 4. Valuations and Shareholding 28 5. Detailed Financials 31 3
Slide 4: Our Journey
Our Journey 2013-14 PAT: Rs.1,569 Cr. 2012-13 Loan assets : Rs. 41,169 Cr. RoE: 27% Conversion to HFC 2011-12 India’s 3rd largest HFC by size PAT Rs.1,266 Cr., RoE: 26% Balance sheet: Rs. 39,129 Cr. Credit rating upgraded to AA+ 2010 - 11 PAT crosses Rs.1,000 Cr. Balance sheet cr
Slide 5: Business Update
Indiabulls HOME LOANS Business Update
Slide 6: Business Update: Key Financial Highlights
Business Update Key Financial Highlights: FY13-14 FY 12-13 FY 13-14 Growth (%) Total Revenues (Rs. Cr.) 4,777.87 5,961.31 24.77% NII (Rs. Cr.) 2,130.42 2,607.47 22.39% PAT (Rs. Cr.) 1,265.99 1,568.54 23.90% EPS (Rs.) 40 48 19.33% RoE% 26% 27% CRAR% 18.47 19.12 Year-on-Year (Y-o-Y) Comparison – Q4 FY
Slide 7: Business Summary
Business Summary • Loans Outstanding : Rs. 41,169 Cr (March 31, 2014) : (US$ 6.86 bn) • Loan Book CAGR (6 years) : 26 % • Cumulative Loans given to retail Customers : 5.95 Lakh • Cumulative Loans Disbursed till date : Rs. 86,300 Cr (US$ 14.38 bn) • Cost to Income Ratio (FY 2014) : 17% • Profit After
Slide 8: Country-wide Reach
Country-wide Reach Number of Outlets 2010 140 2011 163 2012 180 2013 200 2014 205 8
Slide 9: Indian Mortgage Market
Indiabulls HOME LOANS Indian Mortgage Market
Slide 10: Indian Mortgage Market: Low Mortgage Penetration
Indian Mortgage Market Headroom for Growth - Low Mortgage Penetration 88% 81% 41% 26% 29% 17% 20% 9% India Thailand China Korea Malaysia Hong Kong USA UK Source: National Housing Bank, 2013 • Lower mortgage penetration compared to advanced and emerging economies implies huge opportunity for growth •
Slide 11: Growing HFC Market Share in Expanding Home Loans Market
Indian Mortgage Market Growing HFC Market Share in a Steadily Expanding Home Loans Market 12,000 45% 40% 10,000 37% 40% 35% 8,000 Rs. Billion 32% 35% 6,000 30% 27% 27% 30% 4,000 2,000 25% 3,695 3,990 4,541 5,448 6,249 7,110 10,958 - 20% FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 16E Home Loan Portfolio
Slide 12: Tax Incentives – Low Effective Interest Rates
Indian Mortgage Market Tax Incentives – Low Effective Interest Rates Particular 2014 2010 2000 Loan Amt (Rs) 2,500,000 2,500,000 2,500,000 Nominal Interest Rate(%) 10.25% 9.25% 13.25% Max deduction for interest allowed 150,000 150,000 75,000 Deduction Principal 100,000 100,000 20,000 Tax Rate applic
Slide 13: Financial and Operational Highlights
Financial and Operational Highlights 13
Slide 14: Balance Sheet Assets
Balance Sheet Assets 3% 17% Loan Book: 80% Cash & Liquid Investments: 17% Other Assets: 3% 80% Total Assets As at March 31, 2014 Rs. 44,418 Cr. (US$ 7.40 bn) As at March 31, 2013 Rs. 39,129 Cr. (US$ 6.52 bn) * Cash, Cash Equivalents and Investments in Liquid Debt Instruments US $ amounts are convert
Slide 15: Loan Book Growth
Loan Book Growth Total Loan Assets (Rs. Cr.) Loans Sold (Rs. Cr.) (in preceding 12 months) 4,171 41,169 34,425 27,521 2,379 2,397 Mar-12 Mar-13 Mar-14 Mar-12 Mar-13 Mar-14 • The growth in the loan book, inclusive of loans sold in the previous 12 months, is 20% • Loans amounting to Rs. 4,171 Cr. were
Slide 16: Asset Composition
Asset Composition FY 13-14 FY 12-13 21% 21% 5% 7% 74% 72% • Home loans, which forms the majority of incremental disbursals, are disbursed at an average ticket size of Rs. 24 lacs; average LTV of 70% (at origination) 16
Slide 17: Mortgage Loans' Sourcing
Mortgage Loans' Sourcing 76% of Mortgage loans are sourced in-house 19% 5% 9% 67% DST Branch Walk-ins Bank Tie-ups DSA • Increasing DST manpower and improving productivity will push in-house sourcing to over 80% in FY15 17
Slide 18: Conservative Home Loan Profile
Conservative Home Loan Profile Average Loan Size 24 Lacs Maximum Loan to Value 80% Average Loan to Value 70% (at origination) Average Loan Term 13 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing 18
Slide 19: Conservative Loan Against Property Profile
Conservative Loan Against Property Profile Average Loan Size 68 Lacs Maximum Loan to Value 65% Average Loan to Value 49% (at origination) Average Loan Term 7 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing 19
Slide 20: Asset Quality
Asset Quality (as % of Total Loan Assets) 0.83% 0.79% 0.79% 0.46% 0.46% 0.47% 0.33% 0.33% 0.36% Mar-12 Mar-13 Mar-14 Gross NPA General & Specific Provisions Net NPA • NPA’s continue to remain within the target range despite a prolonged depressed economic environment and a resultant weak phase of the
Slide 21: Liabilities
Liabilities 13% 7% Share Holder’s Funds: Rs. 5,709 Cr. (US$ 0.95 bn) Borrowings: Rs. 35,540 Cr. (US$ 5.92 bn) Other Liabilities: Rs. 3,170 Cr. (US$ 0.53 bn) 80% Total Liabilities: As of March 31, 2014: Rs. 44,418 Cr. (US$ 7.40 bn) As of March 31, 2013: Rs. 39,129 Cr. (US$ 6.52 bn) US $ amounts are c
Slide 22: Diversified Borrowing Programme
Diversified Borrowing Programme 10% 8% 8% 25% 30% 30% Bank Loans Bonds Commercial Paper 65% 62% 62% Mar-12 Mar-13 Mar-14 Total Borrowings: As of March 31, 2014: Rs. 35,540 Cr. (US$ 5.92 bn) As of March 31, 2013: Rs. 31,286 Cr. (US$ 5.21 bn) US $ amounts are converted based on the exchange rate of US
Slide 23: Diversified Borrowing Programme
Diversified Borrowing Programme 35,540 Borrowings (Rs. Cr.) 31,286 25,287 5.20 4.67 3.92 Mar-12 Mar-13 Mar-14 Borrowings Net Gearing Net Gearing: Borrowings Net of ‘Cash & Cash Equivalents’ and ‘Investments in Liquid Debt Instruments’ Contribution in Incremental Total Borrowings (Rs. Cr.) Borrowing
Slide 24: Optimally Matched Balance Sheet
Optimally Matched Balance Sheet Maturity Profile (As of March 31,2014) 17,922 16,715* 16,259 14,431 10,725 10,104 Up to 1 yr 1 - 5 yrs Over 5 yrs Asset Liabilities (Amounts in Rs. Cr.) • * Assets in the ‘Up to 1 Yr’ bucket includes Rs. 7,341.4 Cr. of Cash, Cash equivalents and investments in liquid
Slide 25: Our Strengths
Our Strengths Awards and Accolades Corporate Strengths ASSOCHAM HFC ISO 9001:2008 • Headroom to grow: CRAR: 19.1%; Net gearing: 5.2 of the Year 2013-2014 Certificate • Steady book growth over last 19 quarters • Declining cost to income ratio: 17.1% (for FY 2013-14) • Technology driven quality custom
Slide 26: Rising Productivity Ratios
Rising Productivity Ratios FY 2012 FY 2013 FY 2014 No. Of Employees 4,243 4,072 4,099 No. Of Outlets 181 200 205 Profit Per employee (Rs. Cr.) 0.24 0.31 0.38 Asset Per employee (Rs. Cr.) 5.85 8.09 10.84 Cost Income Ratio 18.7% 18.0% 17.1% 26
Slide 27: Key Financial Metrics
Key Financial Metrics FY 2012 FY 2013 FY 2014 Pre Tax ROAA (%) 4.9% 4.9% 4.8% Post Tax ROAA (%) 3.7% 3.8% 3.8% ROE (%) 22% 26% 27% Capital Adequacy (%) 18.86% 18.47% 19.12% - Of which Tier I 18.21% 14.96% 15.04% - Tier II 0.65% 3.51% 4.08% 27
Slide 28: Valuations and Shareholding
Valuations and Shareholding 28
Slide 29: Valuations and Returns
Valuations and Returns Mar-12 Mar-13 Mar-14 Market Price per share* (Rs.) 207.1 271.8 285.6 Market Capitalisation* (US$ Bn) 1.08 1.42 1.59 PE Ratio (times) 6.5 6.8 6.0 Book Value per share (Rs.) 157.7 165.4 168.7 Price to Book Ratio (times) 1.3 1.6 1.7 Dividend per share (Rs.) 13 20 29 Foreign Share
Slide 30: Shareholding Pattern
Shareholding Pattern 13.7% 3.4% 41.8% 41.1% Promoters Foreign Shareholding MFs/Banks/IFI Public FII: Foreign Institutional Investors MF: Mutual Funds IFI: Indian Financial Institutions 30
Slide 31: Detailed Financials
Indiabulls HOME LOANS Detailed Financials 31
Slide 32: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. 7,341.4 Cr of Cash & Cash Equivalents and Investments in Liquid Debt Instruments 32
Slide 33: Consolidated Income Statement
Consolidated Income Statement 33
Slide 34: Thank you
Indiabulls HOME LOANS Thank you
Indiabulls Housing Finance — FY2014 Earnings Presentation on 6ix