L&t Finance Ltd · NSE:LTF
L&t Finance — Q4 FY20 Earnings Presentation
82 slides from L&t Finance's earnings presentation, May 15, 2020
Slide 1: L&T Financial Services exchange submission letter
e L&T Financial Services May 15, 2020 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Corporate Relations Department, Plot No. C/1, G Block, 1st Floor, New Trading Ring, Sandra - Kurla Complex, Sandra (East), P. J . Towers, Dalal Street, Mumbai - 400 051 . Mumbai - 400 001. Symb
Slide 2: Strategy & Results Update – FY20 & Q4FY20
Strategy & Results Update – FY20 & Q4FY20 1
Slide 3: Disclaimer
Disclaimer The information in this presentation is provided by L&T Finance Holdings Limited (the “Company”) for information purpose only. This presentation or any information therein may not be used, reproduced, copied, photocopied, duplicated or otherwise reproduced in any form or by any means; or
Slide 4: LTFH 2.0
LTFH 2.0 Our Commitment TO BE A COMPANY WHICH: Sustainably delivers top quartile RoE with strengthened risk profile Has a clear Right to Win in each of the businesses Uses Data Intelligence as a key to unlock RoE Has a culture of “Results” not “Reasons” Stable and sustainable organisation built on t
Slide 5: Agenda
Agenda A Q4 in perspective B What worked for LTFH C Q4 P&L explained 4
Slide 6: Q4FY20 in perspective
Q4FY20 in perspective Q4FY20 was estimated to be a fairly normal quarter till about 10th March • Gained market shared in 2W and Farm portfolios while maintaining market share in others • Disbursement and collection pace was maintained as a result of strengths built across businesses Localized lockdo
Slide 7: Q4FY20 in perspective
Q4FY20 in perspective Pre Fairly normal quarter till about 10th March Lockdown Partial Localized lockdown and partial restrictions started around 10th March Lockdown Full Total lockdown from 25th March Lockdown 6
Slide 8: Business Achievements
Business Achievements Pre Lockdown Maintained Market Leadership MARKET LEADER in Farm Micro Loan Two wheeler Renewable sector Ranked 2nd Ranked 3rd Ranked 5th financing Achievements ❑ Increased share of existing good Market share increased Market share increased % of salaried segment customers to 51
Slide 9: Improved Collections and GS3
Improved Collections and GS3 Pre Lockdown Asset Quality Asset Quality Q4FY20 Q4FY20 Q3FY20 (LTFH) (with DPD Freeze) (No DPD Freeze) GS3 (Rs. Cr) 5,662 5,037 5,287 GS3 (%) 5.94% 5.36% 5.63% Despite the lockdown and even without considering DPD freeze, there is considerable improvement in Q4FY20 asset
Slide 10: Lockdown Preparation
Lockdown Preparation Partial Lockdown Actions started 2 weeks ahead of lockdown ✓ Enhanced IT security and increased capacity of IT systems ✓ Preparations were made to ensure that IT systems are in place much before lockdown started ✓ Centralized emergency response team set up to monitor government
Slide 11: Portfolio Actions
Portfolio Actions Partial Lockdown Actions being undertaken • Re-purposing of sales teams & sales call centres to enable debtor collection Work Allocation • Allocation of separate set of accounts to each team – Increased focus across various stages of debtors • Use of internal & external data source
Slide 12: RBI's Moratorium Communication
RBI’s Moratorium Communication Full Lockdown First Circular - March 27, 2020 • RBI permitted the lenders to grant a moratorium of three months to all their borrowers • No specific clarification on whether moratorium results in DPD freeze or not for installments falling due between March 1, 2020 to M
Slide 13: Moratorium: Product-wise Coverage of Customers
Moratorium: Product-wise Coverage of Customers Full Lockdown Product LTFS’ Moratorium Policy Micro Loans • All customers granted moratorium for 3 installments by default as per MFIN framework Farm, TW & • Moratorium for 3 installments by default where no mandate of central clearance exists Consumer
Slide 14: Agenda
Agenda A Q4 in perspective B What worked for LTFH C Q4 P&L explained 13
Slide 15: What worked for LTFH: Assurance
What worked for LTFH ASSURANCE Prudent ALM, adequate liquidity and well established liability franchise Highest Credit Rating Stringent risk control measures and enhanced Strong Balance Sheet portfolio action post lockdown Continuation of strategic Initiatives 14
Slide 16: Prudent ALM and adequate liquidity
1.1 Prudent ALM and adequate liquidity As on 31st March, 2020 Structural Liquidity statement 55,947 Cumulative Inflows (Rs. Cr) Cumulative Outflows (Rs. Cr) 31,879 31,398 21,007 15,982 18,439 12,125 12,016 8,012 8,966 7,139 48 295 2,588 1-7 days 8-14 days 15 days-1 month 1-2 months 2-3 months 3-6 mo
Slide 17: Well established liability franchise (1/2)
1.2 Well established liability franchise (1/2) FY18 FY19 FY20 4% 1% 2% 4% 14% 6% 3% 16% 7% 39% 36% 5% 44% 38% 42% 39% Bank Loans NCD (ex retail) NCD Retail CP ECB Others Rs. 75,248 Cr Rs. 91,507 Cr Rs. 93,894 Cr • Focus on diversification by raising Rs. 9,415 Cr of long-term borrowing from new sourc
Slide 18: Well established liability franchise (2/2)
1.2 Well established liability franchise (2/2) Preference shares Incremental Long Term Borrowing (Rs Cr) 4% NCD - Public Products FY18 FY19 FY20 Q4FY20 Issue 8% Term Loans – Non PSL 6,220 8,722 9,598 2,058 Term Loans - ECB Non PSL 11% NCD – Private Placement 11,135 8,332 8,123 4,441 34% Term Loans –
Slide 19: AAA Credit Rating for LTFH and all its subsidiaries
2. AAA Credit Rating for LTFH and all its subsidiaries Credit Ratings – LTFH and its subsidiaries • LTFH and all its lending subsidiaries have been assigned / reaffirmed AAA rating from CRISIL, ICRA, CARE and India Ratings: ➢ CRISIL assigned in October 2019 and reaffirmed in May 2020 Ratings Update
Slide 20: Strong Balance sheet (1/3)
3.1 Strong Balance sheet (1/3) Asset Quality Capital Adequacy 64% 61% 59% 8.71% 21.60% 7,043 19.27% 17.86% 3.90% 5.90% 3.84% 5.36% 3.30% 5,549 3.34% 5,037 2.40% 17.70% 2,554 2.28% 15.43% 14.56% 2,174 2,078 FY18 FY19 FY20 FY18 FY19 FY20 GS3 NS3 PCR Tier I Tier II CRAR • Rule based centralized underwr
Slide 21: Strong Balance sheet (2/3)
3.2 Strong Balance sheet (2/3) LTFH Consolidated – Asset Quality 61% 57% 59% 10% 5,549 5,662 5,037 5.94% 7% 5.90% 5.36% 2,174 2,458 2,078 4% 2.67% 2.40% 2.28% 1% Q4 FY19 Q3 FY20 Q4 FY20 GS3 (Rs. Cr) NS3 (Rs. Cr) GS3 (%) NS3 (%) PCR (%) Considerable improvement in Q4FY20 asset quality, despite the lo
Slide 22: Additional provisions on Non GS3 book (3/3)
3.2 Strong Balance sheet – Additional provisions on Non GS3 book (3/3) Particulars (Rs. Cr) Total Lending Business Loan book size (excluding GS3) - (1) 89,016 Provision on stage 1 and Stage 2 assets as per ECL model - (2) 397 Additional provisions - (3+4+5=6) 664 Macro Prudential provisions - (3) 35
Slide 23: Stringent risk control measures and enhanced portfolio actions
4. Stringent risk control measures and enhanced portfolio actions post lockdown Risk Framework already in place Enhanced portfolio actions during Covid-19 • Clearly defined risk limits across various parameters • Impact assessment on business wise portfolios using including products, sector, geograp
Slide 24: Strong risk control measures: Retail Finance
4.1.1 Strong risk control measures: Retail Finance Rural, HL and LAP Actions taken to ensure quality portfolio • Use of data analytics to determine OEM classification, geography selection and dealer penetration • Centrally controlled parameterized underwriting with focus on ensuring portfolio qualit
Slide 25: Strong risk control measures: Project Finance
4.1.2 Strong risk control measures: Project Finance Infrastructure and Real Estate Actions taken to ensure quality portfolio • Focus on funding to marquee developers with proven track record of project completion and ability to sell • Gradually increased share of commercial portfolio with focus larg
Slide 26: Enhanced portfolio actions: Rural Finance
4.2.1 Enhanced portfolio actions: Rural Finance Further Strengthening Collection Usage of analytical models and bureau Tightening Credit Controls information to determine • Usage of analytics for collection • Cash flow availability with borrower • Tightening of LTV grid – reduction of prioritization
Slide 27: Enhanced portfolio actions: Housing Finance
4.2.2 Enhanced portfolio actions: Housing Finance Actions being undertaken • Enhanced touch free collections through digital payment modes (UPI, mobile wallet, net banking) • Arrest early bucket delinquencies through use of propensity model & centralised calling • Customer engagement HL/LAP ➢ Educat
Slide 28: Enhanced portfolio actions: Infrastructure Finance
4.2.3 Enhanced portfolio actions: Infrastructure Finance Actions being undertaken • Electricity falling under essential services, allows companies to have manpower at sites. No major impact on O&M • DSRA & TRA being reviewed in detail and controlled strictly Renewables (Operational) • No material im
Slide 29: Continuation of strategic Initiatives
5. Continuation of strategic Initiatives Merger of operating lending Continued reduction in Completed sale of domestic entities Defocused book Wealth business 28
Slide 30: Merger of operating lending entities (1/2)
5.1 Merger of operating lending entities (1/2) One operating lending entity L&T Finance Ltd - flagship lending subsidiary Maximum synergy if L&T Finance is the continuing entity Merger of all operating lending entities into L&T Finance Ltd. L&T Housing Finance + L&T Infrastructure Finance to be merg
Slide 31: Merger of operating lending entities (2/2)
5.1 Merger of operating lending entities (2/2) Benefits of merger Enhanced governance • Enhanced governance standards and controls • Better utilisation of management bandwidth • Superior cash-flow synergies in the merged entity enabling efficient ALM management Improved ALM & Cost ➢ Prudent liquidit
Slide 32: Continued reduction in Defocused book
5.2 Continued reduction in Defocused book Defocused book* (Rs. Cr) 10,365 9,403 7,203 5,497 5,230 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Strong execution demonstrated in successfully running down the book to Rs. 5,230 Cr in Q4FY20 (reduction of 50% YoY) 31 * Defocused book consists of DCM, Structured Co
Slide 33: Completed sale of domestic Wealth business
5.3 Completed sale of domestic Wealth business ❖ LTFH had entered into a definitive agreement to sell 100% stake of L&T Capital Markets to IIFL Wealth on 28th August 2019. Transaction completion was subject to regulatory approvals ❖ LTFH completed the 100% stake sale of L&T Capital Markets to IIFL W
Slide 34: Agenda
Agenda A Q4 in perspective B What worked for LTFH C Q4 P&L explained 33
Slide 35: Summary of impact on results
Summary of impact on results Disbursements were impacted after 10th Impact on book mainly on account of March 2020 across all businesses reduction in Infra disbursements Disbursements Book Fees for the quarter is lower due to shortfall Marginally lower WAC than Q3FY20 despite in disbursements tighte
Slide 36: Disbursements
Disbursements Focused Business 12,455 9,561 8,213 Q4FY19 Q3FY20 Q4FY20 Rural Finance Housing Finance Infrastructure Finance 4,812 5,468 4,596 4,420 3,047 2,024 1,902 2,069 1,891 Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20 Disbursements at par with run rate till 10th March, before
Slide 37: Book Growth
Book Growth Lending Businesses Non Lending Businesses Rural Housing Infrastructure Investment Finance Finance Finance Management Q4FY19 Q4FY20 Book AAuM1 8% 4% 3% 0% Impact on book mainly to the extent of reduction in Infra disbursements 1 Investment Management – AAuM (quarterly average) 36
Slide 38: NIMs and Fees
NIMs and Fees % of average book % of average book NIMs Fees 5.63% 5.69% 5.45% 5.17%* 1.59% 1.66% 1.41%* 1.17% Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY20 Q2FY20 Q3FY20 Q4FY20 • Disbursements were impacted for the last 10-15 days of Q4FY20, and hence there is no substantial impact on NIMs • Fees has been impa
Slide 39: NIMs + Fee Income
NIMs + Fee Income % of average book Total Income (NIMs+Fee) 7.29% 6.76%* 6.86%* 6.87% Q1FY20 Q2FY20 Q3FY20 Q4FY20 FY20 - 6.95%* Despite lower disbursements, lower fee income and maintaining higher liquidity, we have been able to maintain NIMs+Fees in the desired range of 6.5%-7% * Normalising for on
Slide 40: Weighted average cost on borrowings
Weighted average cost on borrowings Q-o-Q movement in WAC 8.71% 8.61% 8.58% 8.50% 8.53% 8.59% 8.54% 8.36% 8.43% 8.24% 8.16% 8.23% 8.29% 8.33% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY17 FY17 FY18 FY18 FY18 FY18 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 • Consistent reduction in WAC despite tightene
Slide 41: Credit cost
Credit cost Credit Cost Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Credit Cost on focused business 431 357 285 414 445 455* Credit Cost on defocused business (11) 100 310 210 160 89 Additional Covid-19 provisions - - - - - 209 Total Credit Cost 420 457 595 624 605 752 Credit Cost on focused business
Slide 42: LTFH Consolidated – Summary financial performance
LTFH Consolidated – Summary financial performance Performance Summary Q4FY19 Q3FY20 Q4FY20 Y-o-Y % Summary P&L (Rs. Cr ) FY19 FY20 Y-o-Y (%) 3,046 3,307 3,232 6% Interest Income 11,426 13,080 14% 1,832 1,884 1,819 -1% Interest Expense 6,859 7,513 10% 1,215 1,423 1,413 16% NIM 4,567 5,567 22% 403 418
Slide 43: LTFH Consolidated – Key ratios
LTFH Consolidated – Key ratios Key Ratios Q4FY19 Q3FY20 Q4FY20 Key Ratios FY19 FY20 12.75% 13.09% 13.02% Yield 12.51% 13.09% 5.08% 5.63% 5.69% Net Interest Margin 5.00% 5.57% 1.69% 1.66% 1.17% Fee & Other Income 1.74% 1.58% 6.77% 7.29% 6.87% NIM + Fee & Other Income 6.75% 7.15% 1.70% 2.01% 2.07% Ope
Slide 44: Capital allocation and RoE bridge: Q4FY20
LTFH Consolidated – Capital allocation and RoE bridge: Q4FY20 Q4 FY19 Q4 FY20 PAT Business Segments (₹ Cr) PAT Net Worth RoE Y-o-Y (%) PAT Net worth RoE 250 3,719 27.12% Rural Finance 175 4,523 15.14% (30%) 229 3,667 26.85% Housing Finance 102 4,302 9.28% (56%) 48 3,650 5.71% Infrastructure Finance
Slide 45: Capital allocation and RoE bridge: FY20
LTFH Consolidated – Capital allocation and RoE bridge: FY20 FY19 FY20 PAT Business Segments (₹ Cr) PAT Net Worth RoE Y-o-Y (%) PAT Net worth RoE 895 3,719 27.94% Rural Finance 1,027 4,523 24.22% 15% 801 3,667 26.89% Housing Finance 756 4,302 18.52% (6%) 146 3,650 4.91% Infrastructure Finance (ex IDF
Slide 46: Outlook for FY21
Outlook for FY21 Disbursements Liquidity • Retail - Disbursements to start gradually as the economy opens up • 1-in-10 scenario defined in our risk framework • Infra & RE - Largely limited to tranche has helped us in current times disbursements. Fresh disbursements subject to • However, enhanced liq
Slide 47: Conclusion (1/2)
Conclusion (1/2) Q4FY20 performance was broadly in line with run rate till the nationwide lockdown was enforced: ➢ Gained market share in Farm and 2W while maintaining business strengths across the businesses ➢ Considerable improvement in asset quality, despite the lockdown and even without consider
Slide 48: Conclusion (2/2)
Conclusion (2/2) Outlook going forward ➢ Planning for the Black Swan scenario, an essential part of liquidity management ➢ Disproportionate attention given to collections through EWS, analytics based models etc. Stringent project monitoring towards ❖ cashflow and project completion ➢ Tightening cred
Slide 49: Appendix
Appendix G L&T Financial Services
Slide 50: Building Business Strengths
Building Business Strengths 49
Slide 51: Building and protecting strength: Rural Finance
Building and protecting strength Rural Finance Industry LTFH • Market has seen de-growth of 9% in Q4FY20 vis-à-vis 10% • Disbursement growth of 5%; book grew by 15% degrowth in FY20 • Increase in market share to 15% in Q4 FY20 (14% in Q3 FY20) • Strong recovery seen in sales from Dec’19 – Feb’20 owi
Slide 52: Building and protecting strength: Housing Finance
Building and protecting strength Housing Finance Industry LTFH • Disbursements in Q4FY20 impacted owing to Covid-19 related • Disbursement de-growth of 27%; book grew by 24%. Sourcing lockdown restricted to select set of A/A+ developers for under construction projects • Prospective home buyers may d
Slide 53: Building and protecting strength: Infrastructure Finance
Building and protecting strength Infrastructure Finance Industry LTFH • Renewables, roads and transmission are amongst the few infra sectors showing growth • Focus remains on key sectors: Road, Renewable and • Government unveiled plan for enhanced investment in Transmission infrastructure space over
Slide 54: Building and protecting strength: Mutual Funds
Building and protecting strength Mutual Funds • Experienced investment team and superior fund performance has resulted in improvement in market ranking and higher growth than industry ➢ On a 5-year performance, 5 out of 10 Equity schemes (71% of equity AUM) are in top 1 & 2 quartile ➢ Fixed Income p
Slide 55: Merger of operating lending entities
Merger of operating lending entities 54
Slide 56: Strategy Recap – FY17
Strategy Recap – FY17 Right Businesses Right Structure Right People Key Proposition Simplicity Alignment Continued focus on sustainable RoE for Shareholder Value Creation 55
Slide 57: Right structure: Journey so far
Right structure: Journey so far Q3 FY17: Merger of Consumer Financial Services with L&T Housing Finance (October 28, 2016) Q4 FY17: Merger of L&T Finance & L&T FinCorp with Family Credit (February 13, 2017) Q3 FY18: Merger of L&T Access Distribution Services with L&T Capital Markets (November 10, 20
Slide 58: Next steps towards “Right Structure”
Next steps towards “Right Structure”.... One operating lending entity L&T Finance Ltd - flagship lending subsidiary Maximum synergy if L&T Finance is the continuing entity Merger of all operating lending entities into L&T Finance Ltd. L&T Housing Finance + L&T Infrastructure Finance to be merged wit
Slide 59: Financial Update
Pe Financial Update | ® L&T Financial Services 58
Slide 60: Lending Business – Business wise disbursement split
Lending Business – Business wise disbursement split Disbursement Q4FY19 Q3FY20 Q4FY20 Y-o-Y (%) Segments (Rs. Cr ) FY19 FY20 Y-o-Y (%) 845 1,370 890 5% Farm Equipment 3,864 3,821 -1% 1,262 1,495 1,203 -5% 2W Finance 4,968 4,901 -1% 2,705 2,561 2,216 -18% Micro Loans 10,903 9,884 -9% - 42 112 - Consu
Slide 61: Lending Business – Business wise book split
Lending Business – Business wise book split Book Q4FY19 Segments (Rs. Cr) Q3FY20 Q4FY20 Y-o-Y (%) 7,362 Farm Equipment 8,240 8,438 15% 5,739 2W Finance 6,423 6,575 15% 12,476 Micro Loans 12,889 12,495 0% - Consumer Loans 42 154 - 25,577 Rural Finance 27,594 27,661 8% 6,243 Home Loans 7,459 7,770 24%
Slide 62: Rural Finance – Summary financial performance
Rural Finance – Summary financial performance Performance Summary Q4FY19 Q3FY20 Q4FY20 Y-o-Y % Summary P&L (Rs. Cr ) FY19 FY20 Y-o-Y (%) 1,155 1,311 1,317 14% Interest Income 4,004 5,063 26% 421 490 464 10% Interest Expense 1,490 1,908 28% 734 821 852 16% NIM 2,513 3,155 26% 90 121 94 4% Fee & Other
Slide 63: Rural Finance – Key ratios
Rural Finance – Key ratios Key Ratios Q4FY19 Q3FY20 Q4FY20 Key Ratios FY19 FY20 18.85% 19.12% 18.97% Yield 18.66% 18.89% 11.97% 11.90% 12.35% Net Interest Margin 11.72% 11.77% 1.48% 1.76% 1.36% Fee & Other Income 1.75% 1.65% 13.45% 13.66% 13.71% NIM + Fee & Other Income 13.46% 13.42% 3.62% 4.29% 4.3
Slide 64: Rural Finance - Asset quality
Rural Finance - Asset quality Rural - Asset Quality 62% 66% 77% 13% 11% 1,021 970 9% 864 7% 5% 3.46% 3.59% 3.78% 329 332 3% 233 1.34% 1.26% 0.89% 1% -1% Q4FY19 Q3FY20 Q4FY20 GS3 (Rs. Cr) NS3 (Rs. Cr) GS3 (%) NS3 (%) Additional provisions at Rs. 397 Cr., are over and above the expected credit losses
Slide 65: Housing Finance – Summary financial performance
Housing Finance – Summary financial performance Performance Summary Q4FY19 Q3FY20 Q4FY20 Y-o-Y % Summary P&L (Rs. Cr ) FY19 FY20 Y-o-Y (%) 777 857 821 6% Interest Income 2,762 3,350 21% 428 515 503 18% Interest Expense 1,551 2,004 29% 349 343 317 -9% NIM 1,211 1,346 11% 63 66 39 -37% Fee & Other Inc
Slide 66: Housing Finance – Key ratios
Housing Finance – Key ratios Key Ratios Q4FY19 Q3FY20 Q4FY20 Key Ratios FY19 FY20 12.90% 12.53% 12.29% Yield 12.55% 12.58% 5.79% 5.01% 4.75% Net Interest Margin 5.50% 5.06% 1.05% 0.97% 0.59% Fee & Other Income 1.20% 0.83% 6.84% 5.97% 5.34% NIM + Fee & Other Income 6.70% 5.89% 0.77% 1.20% 1.27% Opera
Slide 67: Housing Finance - Asset quality
Housing Finance - Asset quality Housing - Asset Quality 30% 28% 31% 3% 255 233 208 177 167 146 0.97% 0.83% 0.88% 0.63% 0.68% 0.58% 0% Q4 FY19 Q3 FY20 Q4 FY20 GS3 (Rs. Cr) NS3 (Rs. Cr) GS3 (%) NS3 (%) PCR (%) Additional provisions at Rs. 248 Cr., are over and above the expected credit losses on GS3 a
Slide 68: Infrastructure Finance (ex IDF) – Summary financial performance
Infrastructure Finance (ex IDF) – Summary financial performance Performance Summary Q4FY19 Q3FY20 Q4FY20 Y-o-Y % Summary P&L (Rs. Cr ) FY19 FY20 Y-o-Y (%) 678 770 766 13% Interest Income 2,634 3,106 18% 547 572 555 1% Interest Expense 2,110 2,273 8% 130 198 210 62% NIM 525 834 59% 91 77 61 -33% Fee
Slide 69: Infrastructure Finance (ex IDF) – Key ratios
Infrastructure Finance (ex IDF) – Key ratios Key Ratios Q4FY19 Q3FY20 Q4FY20 Key Ratios FY19 FY20 9.70% 10.02% 9.98% Yield 9.60% 10.25% 1.87% 2.58% 2.74% Net Interest Margin 1.91% 2.75% 1.30% 1.01% 0.79% Fee & Other Income 1.33% 1.10% 3.16% 3.58% 3.53% NIM + Fee & Other Income 3.24% 3.85% 0.76% 0.57
Slide 70: Infrastructure Finance (ex IDF) - Asset quality
Infrastructure Finance (ex IDF) - Asset quality Infrastructure Finance- Asset Quality 59% 57% 60% 18% 3,768 16% 3,437 14% 13.53% 11.85% 2,568 12% 10% 9.02% 8% 1,532 1,466 6% 1,036 5.99% 5.42% 4% 3.85% 2% 0% Q4 FY19 Q3 FY20 Q4 FY20 GS3 (Rs. Cr) NS3 (Rs. Cr) GS3 (%) NS3 (%) PCR (%) 69 GS3 - Gross Stag
Slide 71: IDF – Summary financial performance
IDF – Summary financial performance Performance Summary Q4FY19 Q3FY20 Q4FY20 Y-o-Y % Summary P&L (Rs. Cr ) FY19 FY20 Y-o-Y (%) 158 212 214 36% Interest Income 691 859 24% 150 168 173 15% Interest Expense 582 652 12% 8 43 41 432% NIM 109 207 90% 13 14 13 0% Fee & Other Income 63 36 -43% 21 58 55 160%
Slide 72: IDF – Key ratios
IDF – Key ratios Key Ratios Q4FY19 Q3FY20 Q4FY20 Key Ratios FY19 FY20 7.91% 9.60% 9.60% Yield 9.02% 9.97% 0.39% 1.97% 1.85% Net Interest Margin 1.43% 2.41% 0.66% 0.64% 0.59% Fee & Other Income 0.83% 0.42% 1.05% 2.61% 2.45% NIM + Fee & Other Income 2.25% 2.83% 0.24% 0.37% 0.45% Operating Expenses 0.2
Slide 73: IDF - Asset quality
IDF - Asset quality IDF - Asset Quality Asset Quality Q4FY19 Q3FY20 Q4FY20 Book 8,201 8,990 8,796 GS3 (%) Nil Nil Nil 72 GS3 - Gross Stage 3
Slide 74: Infrastructure Finance – Portfolio wise split
Infrastructure Finance – Portfolio wise split D I Sectors (Rs. Cr) Q4FY19 Q3FY20 Q4FY20 Y-o-Y (%) S Renewable Power 2,175 1,478 1,159 -47% B U Roads 2,106 159 412 -80% R S Power Transmission 221 212 110 -50% E M Others1 95 220 210 121% E N T Total 4,596 2,069 1,891 -59% Q4FY19 Q3FY20 Q4FY20 Sectors
Slide 75: AUM disclosure – Investment Management Business
AUM disclosure – Investment Management Business Assets under Management (Rs. Cr) Quarter ended Mar, 2019 Quarter ended Dec, 2019 Quarter ended Mar, 2020 Fund Type AUM1 Avg. AUM2 AUM1 Avg. AUM2 AUM1 Avg. AUM2 Equity 38,551 36,577 37,039 37,176 25,664 34,698 (Other than ELSS) Equity – ELSS 3,338 3,163
Slide 76: Product profile and Geographies
Product profile and Geographies Average Average BUSINESS Major Geographies Ticket Size Tenor Farm MP, Karnataka, UP, Bihar, Telangana, Rs. 3.8 Lakhs 43 months Equipment Maharashtra, AP, Haryana Two Kolkata, Pune, Mumbai, Bangalore, Rs. 62k 25 months Hyderabad, Ahmedabad, Delhi Wheeler Rural TN, Biha
Slide 77: LTFH branch footprint
LTFH branch footprint 9 2 As of 31st March, 2020 11 1 No. of States & Union 21 & 2 18 Territories 14 4 10 No. of branches* 221 3 No. of Micro Loans meeting 17 31 13 1 1,532 centers** 7 7 No. of employees 23,761 28 9 1 12 13 1 6 3 *Also includes 1 branch in Dubai 76 **All these are in rural areas
Slide 78: Corporate Social Responsibility
Corporate Social Responsibility Directly linked to creating value Digital financial inclusion • 4.75 lakh plus community members trained on DFL by Digital Sakhis through Door to Door visits • Capacity building of 5500 Women Entrepreneurs in various trades to enhance their income Water resource manag
Slide 79: Awards & Recognition
Awards & Recognition Business Standard Social Excellence Award 2019 Most Socially Aware Corporate Golden Peacock Award Corporate Social Responsibility Award of the Year Corporate Social Responsibility Women Empowerment (March, 2020) (March, 2020) (March, 2020) 10th India Digital Awards Digital Sakhi
Slide 80: Board comprises majority of Independent Directors
Board comprises majority of Independent Directors Board of Directors S. V. Haribhakti, Non-Executive Chairman, Independent Director Dinanath Dubhashi, Managing Director & CEO o Chairman of Future Lifestyle Fashions Limited, Blue Star Limited & o 29 years of experience across multiple domains in BFSI
Slide 81: Management Team
Management Team Dinanath Dubhashi Managing Director & CEO 29 yrs exp, BNP Paribas, SBI Cap, CARE Kailash Kulkarni Srikanth J Sunil Prabhune Raju Dodti CE - Investment Management & CE – Housing & CE – Rural & CE – Infrastructure Finance Group Head - Marketing Group Head – Central operations Group Hea
Slide 82: Deliver sustainable RoE
Deliver sustainable RoE Registered Office: L&T Finance Holdings Limited Brindavan, Plot No 177 CST Road, Kalina Santacruz (E), Mumbai 400 098 www.ltfs.com T +91 22 6212 5000/5555 CIN: L67120MH2008PLC181833 81