Indostar Capital Finance Limited · NSE:INDOSTAR
Indostar Capital Finance — Q4 FY2024 Earnings Presentation
51 slides from Indostar Capital Finance's earnings presentation, Apr 30, 2024
Slide 1: Stock exchange cover letter for investor presentation
ICFL/LS/026/2024-25 30 April 2024 BSE Limited National Stock Exchange of India Limited Listing Department, 1st Floor, Exchange Plaza, C-1, Block G, P J Towers, Dalal Street, Fort, Bandra Kurla Complex, Bandra, Mumbai - 400 001. (E), Mumbai – 400 051. Scrip Code: 541336 Symbol: INDOSTAR Sub.: Investo
Slide 2: IndoStar Capital Finance Investor Presentation Q4FY2024
INDOSTAR CAPITAL FINANCE Investor Presentation Q4FY 2024
Slide 3: Safe Harbor
Safe Harbor “Your Path To A Better Life” This presentation and the accompanying slides (the “Presentation”), which have been prepared by IndoStar Capital Finance Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation
Slide 4: IndoStar 2.0
INDOSTAR 2.0 “Your Path To A Better Life” • Recalibrated with high yield, low ticket size & low delinquent products Focus on Higher Yield • Moving branch network into the hinterland, serving customers in tier 3 and tier 4 towns products • Branch teams incentivized to ensure unit economics of every l
Slide 5: Continued Focus Areas
Continued Focus Areas “Your Path To A Better Life” 01 05 Digitalization Expanding the use of data and systems 02 06 Automating controls and alerts Expanding distribution to minimize risk footprint 03 07 Continuously evolving product Ensuring a robust balance sheet offerings 04 08 Expanding customer
Slide 6: Key Performance Highlights – FY24 (Consolidated)
Key Performance Highlights –FY24 (Consolidated) “Your Path To A Better Life” AUM Disbursements NIMs Gross Stage 3 Net Stage 3 CRAR ₹ 8,763 crs ₹ 5,497 crs 5.9% 4.1% 1.8% 28.9% CRAR FY23: ₹ 7,813 crs FY23 : ₹ 2,099 crs FY23: 6.1% FY23: 6.8% FY23: 3.2% FY23: 31.5% Net Total Income PAT Branches ₹ 710.2
Slide 7: Changing Portfolio Mix Driven by Retailisation Strategy
Changing Portfolio Mix Driven by Retailisation Strategy Consolidated “Your Path To A Better Life” Break-up of Asset Under Management (₹ crs) Retailisation Strategy Playing Out 26% 10,150 8,998 9,658 7,813 8,062 7,726 8,037 8,763 365 381 388 1,543 1,200 1,190 (5%) 485 1,932 (16%) (15%) (15%) 1,059 73
Slide 8: Retailisation Strategy Playing Out
Retailisation Strategy Playing Out Consolidated “Your Path To A Better Life” Disbursements: Retail (₹ crs) Disbursements: Retail (₹ crs) +105% 1,726 5,190 302 4,885 564 937 1,298 1,221 1,149 579 224 221 945 840 190 2,356 183 4,885 1,424 347 1,936 1,937 1,221 1,298 1,609 4,253 1,609 3,743 14 945 363
Slide 9: Declining Non-performing Assets
Declining Non-performing Assets Consolidated “Your Path To A Better Life” Consolidated NPA Trends (%) Total Provisioning as % of Loan Assets Gross Stage 3 Net Stage 3 Stage 3 Provision Coverage Ratio Provisioning as % of Loan Assets 6.8% 6.7% 6.6% 56.8% 57.2% 54.2% 53.7% 51.5% 5.3% 4.1% 3.2% 3.3% 3.
Slide 10: National Footprint Creating Runway for Growth
National Footprint Creating Runway for Growth Consolidated “Your Path To A Better Life” No States 515 Branches Across 23 States 1 HIMACHAL PRADESH – 2 515 476 493 2 PUNJAB – 9 452 427 124 3 UTTARAKHAND – 9 108 119 77 99 4 HARYANA – 12 31 27 2 66 38 5 NEW DELHI – 2 9 6 UTTAR PRADESH- 33 9 12 391 7 RA
Slide 11: IndoStar Capital Finance Limited
IndoStar Capital Finance Limited
Slide 12: Key Performance Highlights – FY24 (ICF Standalone)
Key Performance Highlights – FY24 (ICF Standalone) “Your Path To A Better Life” AUM Disbursements NIMs Gross Stage 3 Net Stage 3 CRAR ₹ 6,493 crs ₹ 4,560 crs 5.5% 4.97% 2.09% 28.9% CRAR FY23: ₹ 6,191 crs FY23 : ₹ 1,612 crs FY23: 5.7% FY23: 8.06% FY23: 3.78% FY23: 31.5% Net Total Income PAT Branches
Slide 13: Expanding the used CV portfolio
Expanding the used CV portfolio ICF Standalone “Your Path To A Better Life” Break-up of Asset Under Management (₹ crs) Retail Disbursements (₹ crs) 9,318 8,002 8,252 6,190 6,321 5,832 5,990 6,493 1,993 1,321 4,306 1,449 755 1,000 1,074 1,424 365 381 388 (6%) (6%) (6%) 1,543 1,200 1,190 485 1,932 (19
Slide 14: Strategically focusing on CV Portfolio and reducing stressed portfolio
Strategically focusing on CV Portfolio and reducing stressed portfolio ICF Standalone “Your Path To A Better Life” Growth CV Portfolio * (₹ crs) Reduction in SME Portfolio * (₹ crs) 5,594 1,293 Incl. pool trf to 744 116 ARC 466 118 3,672 455 Incl. pool trf to ARC 256 324 & DA with NBFC 249 485 FY23
Slide 15: Movement of Non-performing Assets
Movement of Non-performing Assets ICF Standalone “Your Path To A Better Life” IndoStar Capital Finance (%) Collection Efficiency (Inc Overdue)(%) Gross Stage 3 Net Stage 3 8.1% 99.1% 100.9% 8.1% 7.9% 96.3% 93.3% 88.2% 6.5% 4.97% 4.0% 3.8% 3.7% 2.8% 2.09% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q4 FY
Slide 16: Improving Stage 3 % in FY24
Improving Stage 3 % in FY24 ICF Standalone “Your Path To A Better Life” Particulars (₹ crs) Q4FY24 Q3FY24 Q2FY24 Q1FY24 Q4FY23 Gross Stage 1 & 2 5,985 5,358 5,068 5,484 5,275 ECL Stage 1 & 2 126 133 145 285 287 Net Stage 1 & 2 5,859 5,225 4,923 5,199 4,988 ECL Provision % 2.1% 2.5% 2.9% 5.2% 5.4% Pa
Slide 17: Diversified Borrowing Profile Supported by Capital Adequacy
Diversified Borrowing Profile Supported by Capital Adequacy ICF Standalone “Your Path To A Better Life” Diversified Funding Mix (March 2024) Net-worth and Capital Adequacy Capital 4,813 4,835 4,638 5,328 6,049 Adequacy 32% 34% 33% 32% 29% 1% 4% 7% 1% 3,023 3,054 3,065 3,078 3,102 23% 20% 17% 24% 19%
Slide 18: Credit Rating remains Strong
Credit Rating remains Strong ICF Standalone “Your Path To A Better Life” Key Rating Drivers Strong Credit Ratings ✓ Demonstrated support from majority shareholders, Brookfield Borrowing Type Rating Firm Ratings & Everstone CRISIL AA (–) Term Loans ✓ Strong capitalisation with healthy net worth base
Slide 19: CV Finance
CV Finance
Slide 20: Industry Overview
Industry Overview “Your Path To A Better Life” Commercial Vehicle Industry • Commercial Vehicles are a proxy for economic growth GDP growth • Provides direct / indirect employment to more than 50 Mn people 01 • Over 70% of the goods/ people movement is by Road Regulatory 06 02 Rising Transport chang
Slide 21: Commercial Vehicle Finance
Commercial Vehicle Finance “Your Path To A Better Life” Used Vehicle Average Ticket Size of AUM of ₹ 5,594 crs Disbursement of 98% ₹ 8.2 Lakhs remains same as Q3FY24 Average Loan to Value Disbursements Yield ~18.2% Presence across Ratio is 73.8% in Q4FY24 Gross Stage 3 of 4.9% & Net 23 States vis-à-
Slide 22: CV Finance: Key Operational Parameters
CV Finance : Key Operational Parameters “Your Path To A Better Life” AUM (₹ crs) Loan to Value (%) 5,594 4,850 78.0% 4,383 3,928 74.0% 73.8% 3,672 72.7% 73.0% Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Average Ticket Size (₹ lakhs) AUM Mix (Geography –Wise) (%) 8.3 8.2 8.2
Slide 23: CV Finance: Key Operational Parameters
CV Finance : Key Operational Parameters “Your Path To A Better Life” Disbursements (₹ crs) Disbursements Yield (%) 1,424 1,074 18.2% 1,000 18.0% 17.8% 17.9% 17.9% 755 657 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Disbursement Mix (Product) (%) Disbursement Mix (Geography)
Slide 24: Focus on Digitisation to drive Employee Productivity
Focus on Digitisation to drive Employee Productivity “Your Path To A Better Life” Loan value disbursed/salesperson/month (INR lakhs) Driven by new Loan Origination System (LOS) launch in March’23 Key features that reduced processing time: +103.8% 53 One-click: API driven address, Instant credit scor
Slide 25: IndoStar Home Finance Private Limited
IndoStar Home Finance Private Limited
Slide 26: Indian Affordable Housing Finance Market expected to show Significant Growth
Indian Affordable Housing Finance Market expected to show Significant Growth “Your Path To A Better Life” Ticket Size (Rs) Players in Indian Mortgage Market Increasing Penetration in LIG & EWS Segments to Drive Growth 69% 41% Average LTS Affordable Housing Market MIG & Comprises of loans with ticket
Slide 27: Future Ready to Seize Affordable Housing Market Opportunity
Future Ready to Seize Affordable Housing Market Opportunity “Your Path To A Better Life” Ecosystem Play Remote access to customers through Home Hub app Fully enabled payment methods for customer leading to cash component using 3-4% of overall transactions Geographical Focus Robust Underwriting Geogr
Slide 28: Key Performance Highlights – FY24 (IHFPL Standalone)
Key Performance Highlights –FY24 (IHFPL Standalone) “Your Path To A Better Life” AUM Disbursements NIMs Gross Stage 3 Net Stage 3 CRAR ₹ 2,270 crs ₹ 937 crs 7.7% 1.1% 0.8% 57.4% FY23: ₹ 1,623 crs FY23 : ₹ 487 crs FY23: 8.9% FY23: 1.3% FY23: 0.9% FY23: 80.5% Net Total Income PAT Branches Blended Yiel
Slide 29: Focusing on Growing Housing Finance Book
Focusing on Growing Housing Finance Book HFC Standalone “Your Path To A Better Life” Housing Finance – AUM Housing Finance – Disbursements (₹ crs) (₹ crs) 302 2,270 2,047 1,894 1,741 221 224 1,623 183 190 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4 FY23 Q1 FY24 Q2FY24 Q3FY24 Q4FY24 28
Slide 30: Housing Finance: Key Operational Parameters
Housing Finance : Key Operational Parameters HFC Standalone “Your Path To A Better Life” Average Ticket Size (₹ lakhs) Live Accounts 28,923 26,216 8.9 9.0 9.0 9.0 9.0 24,095 21,975 20,162 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Loan to Value (%) Geographical Distributio
Slide 31: Housing Finance: Key Financial Parameters
Housing Finance : Key Financial Parameters HFC Standalone “Your Path To A Better Life” AUM (₹ crs) Gross Stage 3 & Net Stage 3 (%) 2,270 +29% 1.90% 1.80% 1,623 CRAR 1,406 1.40% 1.25% 1.10% 1.13% 832 996 0.80% 0.90% 0.81% Gross Stage 3 57.4% Net Stage 3 Q4 FY24 0.70% FY 20 FY 21 FY 22 FY23 FY24 FY 20
Slide 32: Catering to Underpenetrated Segments across Product Types
Catering to Underpenetrated Segments across Product Types “Your Path To A Better Life” Characteristics Salaried Self Employed Textile loom workers Retail workers Small traders Kirana shop owners FMCG workers School teachers Tea & snack vendors Vegetable vendors Profession Small time Manual labourers
Slide 33: Process Excellence: Credit & Underwriting
Process Excellence: Credit & Underwriting “Your Path To A Better Life” Evaluation of Profile and Property Risk • Collecting KYCs -Aadhar, PAN, Credit history checks with bureaus. Assessment of LTV, FOIR Excluded from • Assessment of employment / business Portfolio stability • Banking Flows, establ
Slide 34: Process Excellence: Collections & Monitoring
Process Excellence: Collections & Monitoring “Your Path To A Better Life” Collection Process Pre Bounce / Delinquency Post Bounce / Delinquency • Use of Bounce prediction tool which provides with the pool of • Cases are allocated to branch sales RM/collections officers customers with high probabilit
Slide 35: Analytics driven Risk Management to control Delinquency
Analytics driven Risk Management to control Delinquency “Your Path To A Better Life” Key Risk Management Aspects Monitored ✓ Robust dashboards developed in the system to enable real time monitoring of mentioned parameters Lagged ✓ Dashboards are sent to branch managers to enable them to monitor thei
Slide 36: Financial Performance
Financial Performance
Slide 37: ICF Standalone - Income Statement
ICF Standalone - Income Statement ICF Standalone “Your Path To A Better Life” Particulars (₹ in crs) Q4FY24 Q3FY24 Q-o-Q Q4FY23 Y-o-Y FY24 FY23 Y-o-Y Revenue from operations 390.7 238.1 236.0 1,104.2 968.9 Interest expenses 161.9 145.3 134.3 581.2 518.0 Net Interest Income 228.7 92.8 - 101.7 - 523.0
Slide 38: ICF Standalone - Balance Sheet
ICF Standalone - Balance Sheet ICF Standalone “Your Path To A Better Life” Equity & Liabilities (₹ in crs) Mar’24 Dec’23 Mar’23 Assets (₹ in crs) Mar’24 Dec’23 Mar’23 Financial Liabilities Financial Asset Trade payables 1.3 0.0 7.4 Cash and cash equivalents 387.7 386.3 165.0 Bank balance other than
Slide 39: HFC - Income Statement
HFC - Income Statement HFC Standalone “Your Path To A Better Life” Particulars (₹ in crs) Q4FY24 Q3FY24 Q-o-Q Q4FY23 Y-o-Y FY24 FY23 Y-o-Y Revenue from operations 83.7 68.1 50.6 290.1 208.3 Interest expenses 33.5 27.1 17.7 107.6 65.2 Net Interest Income 50.2 41.0 22.4% 32.9 52.6% 182.4 143.1 27.5% O
Slide 40: HFC - Balance Sheet
HFC - Balance Sheet HFC Standalone “Your Path To A Better Life” Equity & Liabilities (₹ in crs) Mar’24 Dec’23 Mar’23 Assets (₹ in crs) Mar’24 Dec’23 Mar’23 Financial Liabilities Financial Asset Trade payables 19.9 0.3 23.9 Cash and cash equivalents 221.4 206.0 10.1 Debt Securities 53.3 27.5 0.0 Bank
Slide 41: Consolidated - Income Statement
Consolidated - Income Statement Consolidated “Your Path To A Better Life” Particulars (₹ in crs) Q4FY24 Q3FY24 Q-o-Q Q4FY23 Y-o-Y FY24 FY23 Y-o-Y Revenue from operations 474.4 306.2 285.2 1,393.0 1,174.3 Interest expenses 195.4 172.4 150.4 687.3 580.3 Net Interest Income 279.0 133.8 - 134.8 - 705.6
Slide 42: Consolidated - Balance Sheet
Consolidated - Balance Sheet Consolidated “Your Path To A Better Life” Equity & Liabilities (₹ in crs) Mar’24 Dec’23 Mar’23 Assets (₹ in crs) Mar’24 Dec’23 Mar’23 Financial Liabilities Financial Asset Trade payables 1.4 0.0 7.9 Cash and cash equivalents 613.9 597.0 179.7 Debt Securities 3,341.0 2,85
Slide 43: Historical - Consolidated Income Statement
Historical - Consolidated Income Statement Consolidated “Your Path To A Better Life” Particulars (₹ in crs) FY24 FY23 FY22 FY21 Revenue from operations 1,393.0 1,174.3 1,162.7 1,279.8 Interest expenses 687.3 580.3 539.5 708.6 Net Interest Income 705.6 594.1 623.2 571.2 Other Income 4.6 5.3 11.6 7.4
Slide 44: Historical - Consolidated Balance Sheet
Historical - Consolidated Balance Sheet Consolidated “Your Path To A Better Life” Assets (₹ in crs) Mar’24 Mar’23 Mar’22 Mar’21 Financial Asset Cash and cash equivalents 613.9 179.7 80.3 279.2 Bank balance other than cash & cash equivalent 349.2 236.0 409.4 241.0 Loans 7,809.8 6,515.7 7,706.9 7,139.
Slide 45: Historical - Consolidated Balance Sheet
Historical - Consolidated Balance Sheet Consolidated “Your Path To A Better Life” Equity & Liabilities (₹ in crs) Mar’24 Mar’23 Mar’22 Mar’21 Financial Liabilities Trade payables 1.4 7.9 2.7 3.9 Debt Securities 3,341.0 1,108.9 1,977.9 2,012.8 Borrowings other than debt securities 4,230.6 4,539.2 4,2
Slide 46: Ownership Structure and Management Team
Ownership Structure and Management Team
Slide 47: Large Global Private Equity Parentage
Large Global Private Equity Parentage “Your Path To A Better Life” Shareholding Pattern (As on March 2024) 21.75% Shareholders % 1.49% Promoters 74.99 BCP V Multiple Holdings Pte Ltd 56.20 1.77% (Brookfield) Everstone Group 18.79 74.99% Domestic Institutional Investors 1.77 ICICI Prudential Life Ins
Slide 48: Experienced Management Team - IndoStar
Experienced Management Team - IndoStar “Your Path To A Better Life” Karthikeyan Srinivasan Vinodkumar Panicker Shreejit Menon Chief Executive Officer - ICF Chief Financial Officer - ICF Chief Executive Officer - HFC o He has over 25 years of experience in the areas of Retail Sales, o He has a career
Slide 49: Esteemed Board of Directors
Esteemed Board of Directors “Your Path To A Better Life” BOBBY PARIKH Naina Krishna Murthy Non-Executive Independent Director Chairman and Non-Executive Independent Director o She has more than two decades of experience in the legal o He has nearly three decades of experience in financial services s
Slide 50: Esteemed Board of Directors
Esteemed Board of Directors “Your Path To A Better Life” Dhanpal Jhaveri Aditya Joshi Non–Executive Director Non-Executive Director o He has over two decades of experience in investments, strategy, o He is a Managing Partner at Brookfield, responsible for the M&A and investment banking. Currently, h
Slide 51: Thank You
COMPANY “Your Path To A Better Life” Indostar Capital Finance Limited CIN: L65100MH2009PLC268160 Email: investor.relations@indostarcapital.com Website: www.indostarcapital.com Thank You INVESTOR RELATIONS ADVISORS Orient Capital (a division of Link Group) Mr. Nikunj Jain Mr. Viral Sanklecha +91 9769
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