L&t Finance Ltd · NSE:LTF
L&t Finance — Q2 FY2021 Earnings Presentation
76 slides from L&t Finance's earnings presentation, Oct 22, 2020
Slide 1: L&T Financial Services submission letter to exchanges
e L&T Financial Services » October 22, 2020 National Stock Exchange of India Limited SSE Limited Exchange Plaza , Corporate Relations Department, Plot No. C/1, G Block, 1st Floor, New Trading Ring , Bandra - Kurla Complex, Bandra (East), P. J. Towers , Dalal Street, Mumbai - 400 051. Mumbai - 400 00
Slide 2: Strategy & Results Update – Q2FY21
Strategy & Results Update – Q2FY21 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 Q2 in perspective B Financial Update 4
Slide 6: Q2FY21 in perspective
Q2FY21 in perspective Drivers Update • Faster than expected recovery in Rural business Gained market share to become No. 1 Farm equipment financier for Q2FY21 Better than expected Best ever monthly disbursements (September) for Rural business revival post lockdown • Strong pickup in Infra disbur
Slide 7: Q2FY21 in perspective
Q2FY21 in perspective Drivers Update • Advantageously placed with AAA rating and strong parentage AAA rating reaffirmed by ICRA, CARE in September 2020 and October 2020 AAA rating reaffirmed by CRISIL in May 2020 and India Ratings in April 2020 • AAA rated NBFCs like LTFH have seen easing of liq
Slide 8: Business update post lockdown
Q2FY21 in perspective Definite positive momentum – Economic revival led by Rural and Renewables Business update post lockdown 7
Slide 9: Rural: Structural changes to drive long term growth
Rural: Structural changes to drive long term growth Rural Positive macros; rural prospects improving • Initiatives like DBT, affordable housing, jal jeevan, ayushman bharat etc. have improved access to housing, Government initiatives sanitation, cooking gas and health care leading to lesser leakages
Slide 10: Led by Farm sector
Led by Farm sector Rural Rainfall Distribution (as % area of the Country) • 9% above normal rainfall with 85% of the country receiving normal / above normal rainfall; however, last 15 days have seen some unseasonal rainfall Deficient Large Excess 15% 5% • Farm sentiments expected to remain healthy,
Slide 11: Demonstrated by steady pickup in Tractor & 2W sales
Demonstrated by steady pickup in Tractor & 2W sales (1/2) Rural Domestic Sales of Tractors (Y-o-Y Growth) • Tractor sales have reported 12% YoY growth in H1FY21 and 41% YoY in Q2FY21 75% • Furthermore, the recent agricultural marketing reforms are 39% 28% expected to benefit the farmers in the long
Slide 12: Micro Loans industry seeing m-o-m improvement
Micro Loans industry seeing m-o-m improvement (2/2) Rural Collection Efficiency Trend – MFI (ICRA Research) • Collection efficiencies improving month on month but yet to 75% 80% scale pre-Covid levels 62% • Overall collections have improved, however payment behavior remains inconsistent • ICRA resea
Slide 13: Infra: Strong pickup in demand and new projects awarded
Infra: Strong pickup in demand and new projects awarded Infrastructure Discom Liquidity Package – augurs well for IPP players1 Pick up in energy demand witnessed in September3 Proposed package 1,20,000 Total Energy 5% Existing package 90,000 Renewable Energy 8% Sanctioned 70,000+ -6% Hydro Disbursed
Slide 14: Housing: Continues to be muted, early signs of recovery
Housing: Continues to be muted although showing very early signs of recovery Housing Launches (no. of units) surged by ~450% QoQ Absorption (no. of units) surged by ~200% QoQ 2019 Qtrly Avg 51,547 2019 Qtrly Avg 54,471 Q1'20 54% of 51,945 Q1'20 44,700 52% of CY2019 Qtrly CY2019 Qtrly Avg Avg Q2'20 5
Slide 15: Housing: Gradual pickup in Home Loan inquiries
Housing: Gradual pickup in Home Loan inquiries Housing Home Loan portfolio growth (in Lakh Cr) Home Loan inquiries index 25.00 25% 19% 106.9 20% 21% 17% 100 100.4 17% 20% 20.00 94.5 19% 17% 89.6 16% 15% 15.00 15% 14% 11% 78.2 16% 8% 72.8 10% 10.00 8% 7% 5% 4% 5.00 31.8 0% 0% 16.53 17.70 19.24 20.20
Slide 16: LTFH Strategy – Driven by growth engines of the industry
LTFH Strategy – Driven by growth engines of the industry Faster pick-up in activity and collections leading to higher disbursements Farm Equipment Excellent disbursements; strong collections Quick Use of analytics led to increased counter share; enhanced on- Two Wheelers Recovery field efforts to re
Slide 17: Leading to improved leadership position across businesses
Leading to improved leadership position across businesses Farm Micro Loans Two -wheeler Ranked 1st Ranked 3rd Ranked 4th (2nd in FY20) (3rd in FY20) (5th in FY20) Leading MARKET Leading Indian Mandated Lead LEADER Mandated Lead Arranger and in Arranger and Book Runner Renewable Book Runner for Asia
Slide 18: Business update post lockdown
Business update post lockdown Disbursements Collections Balance Sheet Liquidity Resilient balance Easing of liquidity Enhanced market Excellent pickup in sheet through leading to reduction leadership in Rural & collections enhanced additional in cost of borrowing Infra segments provisions & excess l
Slide 19: Disbursements – targeted sourcing basis collection trend
1.1 Disbursements – targeted sourcing basis collection trend Focused Business Q2FY21 – 7,129 9,779 7,129 2,318 3,155 2,115 1,859 Q2FY20 Q1FY21 Q2FY21 Jul Aug Sep Rural Finance Housing Finance Infrastructure Finance 4,638 3,108 2,032 2,908 3,607 1,089 614 913 317 Q2FY20 Q1FY21 Q2FY21 Q2FY20 Q1FY21 Q2
Slide 20: Strong pick-up in Rural disbursements
1.2.1 Strong pick-up in Rural disbursements Rural Disbursements (Rs. Cr) YoY Growth (%) 59% 39% 56% 84% • Gained market share to become No. 1 Farm equipment 1,200 100% financier for Q2FY21 1,000 1,089 • Secured leadership position in major states on back of better FARM 0% 800 600 -100% 686 372 421 c
Slide 21: Excellent pickup in disbursements especially in renewables
1.2.2 Excellent pickup in disbursements especially in renewables Infrastructure INRASTRUCTURE FINANCE 3,108 Disbursements (Rs. Cr) 2,908 • Focus on projects with strong sponsors and off-takers (like 1,089 SECI) with proven track record • Stringent risk guardrails to underline select new exposure, Q2
Slide 22: Steady pickup in Housing
1.2.3 Steady pickup in Housing Housing 80000% Disbursements (Rs. Cr) YoY Growth (%) 60000% 40000% 20000% • Home Loan – 87% of loans to salaried segment, self employed 900 0% -45% -63% -45% -29% -20000% 800 -40000% 700 794 home loan fresh disbursements restricted to CF projects only. HL& LAP -60000%
Slide 23: Book – Demonstrated growth in target portfolios
1.3 Book – Demonstrated growth in target portfolios Disbursement Book-size Growth % (YoY) Growth % (YoY) Excellent pickup in Farm; Farm Equipment 59% 19% Gained market share to become No. 1 financier in Q2FY21 Gradual recovery in TW sales; Two Wheelers (1%) 12% Disbursements remained flat while book
Slide 24: Collections – strong pick-up through concerted efforts
2.1 Collections – strong pick-up through concerted efforts Focused Business Q2FY21 – 10,296 10,296 4,321 4,488 2,705 3,104 Q1FY21 Q2FY21 Jul-20 Aug-20 Sept-20 Rural Finance Housing Finance Infrastructure Finance 1,311 4,624 4,361 2,248 461 1,612 Q1FY21 Q2FY21 Q1FY21 Q2FY21 Q1FY21 Q2FY21 Marked imp
Slide 25: Strong improvement in collections m-o-m
2.2.1 Strong improvement in collections m-o-m Rural Farm • Achieved collection efficiency of pre-Covid levels; CE at 89% for the quarter is amongst the highest in the industry • Highest ever CE achieved for every month in Q2FY21 • Leveraging analytics along with on-ground collection efforts to enhan
Slide 26: Continued steady performance
2.2.2 Continued steady performance Infrastructure Industry avg. Daily Power Generation (YoY % change) Renewables 31% • Under a special liquidity window, more than Rs. 24K Cr has been 21% 18% 19% disbursed to Discoms out of over Rs. 70K Cr sanctioned, which has 13% 16% 3% 6% 5% improved the cashflows
Slide 27: Resumed construction activity leading to collection pickup
2.2.3 Resumed construction activity leading to collection pickup Housing LTFS Real Estate portfolio sales (as % of Q2FY20) • Focus on Cat A developers, resumed construction activity, Govt. 100% measures and attractive schemes given by developers, has helped 70-75% our funded projects rebound faster
Slide 28: Strengthened Balance Sheet
3 Strengthened Balance Sheet Additional Provisions on Non GS3 Particulars (Rs. Cr) Total Lending Business Loan book size (excluding GS3 book) - (1) 89,907 Provision on stage 1 and stage 2 assets as per ECL model - (2) 405 Additional provisions - (3+4+5=6) 1,757 Macro Prudential provisions - (3) 1,10
Slide 29: Easing of liquidity leading to lower liquid assets
4.1 Easing of liquidity leading to lower liquid assets … Month end Liquid Assets (Rs. Cr) 11,794 9,347 9,082 9,228 8,660 8,468 8,553 Mar'20 Apr'20 May'20 Jun'20 Jul'20 Aug'20 Sep'20 As of September’20, Rs. 17,449 Cr of liquidity is maintained through the following: Liquid Assets in form of cash,
Slide 30: Reduction in cost on borrowings
4.2 … as well as reduction in cost on borrowings Weighted average cost of borrowing (WAC) 8.71% 8.58% 8.59% 8.61% 8.54% 8.50% 8.53% 8.43% 8.49% 8.36% 8.29% 8.33% 8.32% 8.24% 8.23% 8.16% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY17 FY17 FY18 FY18 FY18 FY18 FY19 FY19 FY19 FY19 FY20 FY20 FY20 F
Slide 31: Agenda
Agenda A Q2 in perspective B Financial Update 30
Slide 32: Financial Performance
Financial Performance Q2FY21 vs Q2FY20 Focused Book Overall Book Rs. 94,172 Cr Rs. 1,00,258 Cr 1% 1% Rs. 93,055 Cr Rs. 98,823 Cr AAuM1 Rs. 69,213 Cr 9% Rs. 63,057 Cr Q2FY20 Q2FY21 Steady growth in focused businesses 1 Investment Management – AAuM (quarterly average) 31
Slide 33: Focused book growth
Focused book growth Lending Businesses Non Lending Businesses Rural Housing Infrastructure Investment Finance Finance Finance Management Q2FY20 Book Q2FY21 7% 1% 2% AAuM1 9% Disbursements 22% 70% 6% 1 Investment Management – AAuM (quarterly average) 32
Slide 34: NIMs + Fee & other income
NIMs + Fee & other income NIMs + Fee & other Income % of average book 6.86%* 6.49% 5.78% Q2FY20 Q1FY21 Q2FY21 Increase in Fee Income by Rs. 119 Cr QoQ on strong revival in Rural and Infra disbursements and enhanced cross selling of products NIMs+Fees impacted by Rs. 64 Cr of negative carry on ac
Slide 35: Asset Quality
Asset Quality LTFH Consolidated – Asset Quality 54% 69% 69% 10% 5,745 4,939 4,921 7% 5.24% 5.98% 2,632 5.19% 1,553 1,530 4% 2.83% 1.71% 1.67% 1% Q2FY20 Q1FY21 Q2FY21 GS3 (Rs. Cr) NS3 (Rs. Cr) GS3 (%) NS3 (%) PCR (%) In addition to above; Macro Prudential provisions, Covid-19 and enhanced provision f
Slide 36: Credit cost
Credit cost Credit Cost (Rs. Cr) Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Credit Cost on focused business 260 414 445 349 228 322 Credit Cost on defocused business 310 210 160 89 88* -13 Additional Provisions: Macro Prudential and Covid-19 25 - - 209 577 446 Additional Provisions: Enhanced ECL on s
Slide 37: Capital allocation and RoE bridge: Q2FY21
LTFH Consolidated – Capital allocation and RoE bridge: Q2FY21 Q2 FY20 Q2 FY21 PAT Business Segments (₹ Cr) PAT Net Worth RoE Y-o-Y (%) PAT Net worth RoE 309 4,245 30.25% Rural Finance 61 4,567 5.20% (80%) 244 4,118 24.49% Housing Finance 108 4,400 9.89% (56%) 158 3,969 16.21% Infrastructure Finance
Slide 38: Conclusion
Conclusion Easing of liquidity for NBFCs with AAA rating and strong parentage: LTFH to focus on reducing excess liquidity and bring down the cost of borrowing further • Maintained higher liquid assets of ~Rs. 4,700 Cr in Q2FY21, leading to negative carry of Rs. 64 Cr in Q2FY21 Easing of (vs Rs. 84 C
Slide 39: Appendix
Appendix Z) L&T Financial Services
Slide 40: What worked for LTFH: Assurance
What worked for LTFH ASSURANCE Prudent ALM and well established liability franchise Highest Credit Rating Strengthened risk profile Building Business Strength 39
Slide 41: Prudent ALM
1.1 Prudent ALM As on 30th September, 2020 Structural Liquidity statement 61,365 Cumulative Inflows (Rs. Cr) Cumulative Outflows (Rs. Cr) 37,824 31,154 27,525 21,133 21,110 13,510 15,967 13,591 12,344 7,530 432 949 2,385 1-7 days 8-14 days 15 days-1 month 1-2 months 2-3 months 3-6 months 6-12 months
Slide 42: Well established liability franchise (1/2)
1.2 Well established liability franchise (1/2) Q2FY20 Q2FY21 3% 3% 4% 1% 10% 9% 7% 39% 6% 42% 40% 36% Bank Loans NCD (ex retail) NCD Retail CP ECB Others Rs. 90,050 Cr Rs. 92,926 Cr • Focus on diversification over the years enabled stable mix of funding sources • Focus on long term borrowings has le
Slide 43: Well established liability franchise (2/2)
1.2 Well established liability franchise (2/2) Term loan (PSL) – 1% ECB 5% Incremental Long Term Borrowing (Rs. Cr) Products Q2FY21 NCD – Private Placement 4,232 ECB 378 NCD - Private Term Loans – PSL* 50 Placement 91% Total 4,660 Rs. 4,660 Cr Demonstrated ability to raise long-term funding even in
Slide 44: 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 reaffirmed AAA rating from CRISIL, ICRA, CARE and India Ratings: Ratings CRISIL assigned in October 2019 and reaffirmed in May 2020 Update India Rat
Slide 45: Strengthened risk profile: Retail Finance
3.1 Strengthened risk profile: 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 quality by
Slide 46: Strengthened risk profile: Project Finance
3.2 Strengthened risk profile: Project Finance Infrastructure and Real Estate Actions taken to ensure quality portfolio • Focus on funding for project completion and extremely selective fresh disbursements • In residential space, focus largely continues to be towards mid and affordable projects whic
Slide 47: Building and protecting strength: Rural
4.1 Building and protecting strength Rural Industry LTFH • Disbursement growth of 59% and book grew by 19%. Secured • Industry sales grew 41% in Q2FY21 YoY No.1 Farm Equipment financier position for Q2FY21 • Increase in MSPs along with good monsoons and adequate • Focusing on new tractor business an
Slide 48: Building and protecting strength: Infrastructure
4.2 Building and protecting strength Infrastructure Industry LTFH • Traction seen in the special liquidity package announced • Continue to focus on our core sectors – roads, renewable for Discoms, positively impacting the IPP players: and transmission Loans over Rs. 70K Cr already sanctioned and o
Slide 49: Building and protecting strength: Housing
4.3 Building and protecting strength Housing Industry LTFH • Overall core housing credit growth is expected to remain • Home Loan disbursements resumed to 50% YoY (57% in moderate in FY21 (vs 3-year CAGR of 16%) Sep’20 vs Sep’19); book growth of 11% • Home buying enquiries picked up from June with g
Slide 50: Building and protecting strength: Mutual Funds
4.4 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 (78% of equity AUM) are in top 1 & 2 quartile. On 6 month
Slide 51: Financial Update
P Financial Update ® L&T Financial Services 50
Slide 52: LTFH Consolidated – Summary financial performance
LTFH Consolidated – Summary financial performance Performance Summary Q2FY20 Summary P&L (Rs. Cr ) Q1FY21 Q2FY21 Y-o-Y (%) 3,254 Interest Income 3,212 3,206 (1%) 1,891 Interest Expense 1,977 1,894 0% 1,362 NIM 1,235 1,311 (4%) 470 Fee & Other Income 190 309 (34%) 1,833 NIM + Fee & other income 1,426
Slide 53: LTFH Consolidated – Key ratios
LTFH Consolidated – Key ratios Key Ratios Q2FY20 Key Ratios Q1FY21 Q2FY21 13.01% Yield 13.03% 12.84% 5.45% Net Interest Margin 5.01% 5.25% 1.88% Fee & Other Income 0.77% 1.24% 7.33%* NIM + Fee & other income 5.78% 6.49% 1.79% Operating Expenses 1.70% 1.81% 5.53% Earnings before credit cost 4.09% 4.6
Slide 54: Business wise disbursement split
Lending Business – Business wise disbursement split Disbursement Q2FY20 Segments (Rs. Cr ) Q1FY21 Q2FY21 Y-o-Y (%) 686 Farm Equipment 590 1,089 59% 1,113 TW Finance 310 1,102 (1%) 2,839 Micro Loans 7 1,354 (52%) - Consumer Loans 6 62 - 4,638 Rural Finance 913 3,607 (22%) 652 Home Loans 66 323 (50%)
Slide 55: Business wise book split
Lending Business – Business wise book split Book Q2FY20 Segments (Rs. Cr) Q1FY21 Q2FY21 Y-o-Y (%) 7,747 Farm Equipment 8,403 9,191 19% 6,009 TW Finance 6,386 6,708 12% 12,841 Micro Loans 12,531 12,262 (5%) - Consumer Loans 155 210 - 26,597 Rural Finance 27,476 28,371 7% 7,024 Home Loans 7,830 7,824
Slide 56: Rural Finance – Summary financial performance
Rural Finance – Summary financial performance Performance Summary Q2FY20 Summary P&L (Rs. Cr ) Q1FY21 Q2FY21 Y-o-Y (%) 1,240 Interest Income 1,307 1,291 4% 485 Interest Expense 509 484 - 756 NIM 798 807 7% 118 Fee & Other Income 32 118 - 873 NIM + Fee & other income 829 926 6% 263 Operating Expense
Slide 57: Rural Finance – Key ratios
Rural Finance – Key ratios Key Ratios Q2FY20 Key Ratios Q1FY21 Q2FY21 18.92% Yield 18.83% 18.67% 11.47% Net Interest Margin 11.53% 11.57% 1.79% Fee & Other Income 0.46% 1.70% 13.25% NIM + Fee & other income 11.98% 13.27% 3.99% Operating Expenses 3.78% 4.22% 9.26% Earnings before credit cost 8.20% 9.
Slide 58: Rural Finance - Asset quality
Rural Finance - Asset quality Rural - Asset Quality 61% 93% 93% 13% 11% 941 9% 921 893 7% 5% 3.61% 370 3.43% 3.21% 3% 1.45% 1% 0.26% 67 0.25% 67 -1% Q2FY20 Q1FY21 Q2FY21 GS3 (Rs. Cr) NS3 (Rs. Cr) GS3 (%) NS3 (%) PCR (%) In addition to above; Macro Prudential provisions, Covid-19 and enhanced provisi
Slide 59: Housing Finance – Summary financial performance
Housing Finance – Summary financial performance Performance Summary Q2FY20 Summary P&L (Rs. Cr ) Q1FY21 Q2FY21 Y-o-Y (%) 844 Interest Income 825 836 (1%) 502 Interest Expense 558 536 7% 341 NIM 267 300 (12%) 53 Fee & Other Income 36 38 (29%) 394 NIM + Fee & other income 302 338 (14%) 74 Operating Ex
Slide 60: Housing Finance – Key ratios
Housing Finance – Key ratios Key Ratios Q2FY20 Key Ratios Q1FY21 Q2FY21 12.64% Yield 12.32% 12.24% 5.11% Net Interest Margin 3.99% 4.40% 0.80% Fee & Other Income 0.53% 0.55% 5.91% NIM + Fee & other income 4.52% 4.95% 1.11% Operating Expenses 1.19% 1.14% 4.80% Earnings before credit cost 3.33% 3.80%
Slide 61: Housing Finance - Asset quality
Housing Finance - Asset quality Housing - Asset Quality 30% 33% 34% 3% 313 259 1.16% 212 206 0.97% 174 0.79% 148 0.77% 0.65% 0.56% 0% Q2FY20 Q1FY21 Q2FY21 GS3 (Rs. Cr) NS3 (Rs. Cr) GS3 (%) NS3 (%) PCR (%) In addition to above; Macro Prudential provisions, Covid-19 and enhanced provision for stage 1&
Slide 62: Infrastructure Finance (ex IDF) – Summary financial performance
Infrastructure Finance (ex IDF) – Summary financial performance Performance Summary Q2FY20 Summary P&L (Rs. Cr ) Q1FY21 Q2FY21 Y-o-Y (%) 789 Interest Income 752 757 (4%) 557 Interest Expense 598 581 4% 232 NIM 154 177 (24%) 89 Fee & Other Income 32 49 (45%) 320 NIM + Fee & other income 186 225 (30%)
Slide 63: Infrastructure Finance (ex IDF) – Key ratios
Infrastructure Finance (ex IDF) – Key ratios Key Ratios Q2FY20 Key Ratios Q1FY21 Q2FY21 10.54% Yield 10.02% 9.94% 3.09% Net Interest Margin 2.06% 2.32% 1.18% Fee & Other Income 0.42% 0.64% 4.28% NIM + Fee & other income 2.48% 2.96% 0.59% Operating Expenses 0.54% 0.49% 3.69% Earnings before credit co
Slide 64: Infrastructure Finance (ex IDF) - Asset quality
Infrastructure Finance (ex IDF) - Asset quality Infrastructure Finance- Asset Quality 57% 63% 64% 18% 16% 3,494 14% 12.05% 2,564 2,552 12% 10% 9.09% 9.05% 8% 1,510 6% 956 924 5.59% 4% 3.59% 2% 3.48% 0% Q2FY20 Q1FY21 Q2FY21 GS3 (Rs. Cr) NS3 (Rs. Cr) GS3 (%) NS3 (%) PCR (%) In addition to above; Covid
Slide 65: IDF – Summary financial performance
IDF – Summary financial performance Performance Summary Q2FY20 Summary P&L (Rs. Cr ) Q1FY21 Q2FY21 Y-o-Y (%) 201 Interest Income 213 217 8% 156 Interest Expense 175 178 14% 45 NIM 38 39 (13%) 4 Fee & Other Income 12 11 202% 48 NIM + Fee & other income 50 50 3% 9 Operating Expense 9 9 - 39 Earnings b
Slide 66: IDF – Key ratios
IDF – Key ratios Key Ratios Q2FY20 Key Ratios Q1FY21 Q2FY21 9.48% Yield 9.53% 9.49% 2.10% Net Interest Margin 1.71% 1.70% 0.17% Fee & Other Income 0.53% 0.47% 2.27% NIM + Fee & other income 2.23% 2.17% 0.41% Operating Expenses 0.38% 0.40% 1.86% Earnings before credit cost 1.85% 1.77% 0.10% Credit Co
Slide 67: IDF - Asset quality
IDF - Asset quality IDF- Asset Quality 0% 0% 0% 0 0 0 Q2FY20 Q1FY21 Q2FY21 GS3 (Rs. Cr) PCR (%) Nil GS3 since Inception 66 GS3 - Gross Stage 3; NS3 - Net Stage 3; PCR – Provision Coverage Ratio
Slide 68: Infrastructure Finance – Portfolio wise split
Infrastructure Finance – Portfolio wise split D I Sectors (Rs. Cr) Q2FY20 Q1FY21 Q2FY21 Y-o-Y (%) S Renewable Power 1,534 994 2,421 58% B U Roads 284 64 144 (49%) R S Power Transmission 973 10 125 (87%) E M Others1 317 22 219 (31%) E N T Total 3,108 1,089 2,908 (6%) Q2FY20 Q1FY21 Q2FY21 Sectors (Rs.
Slide 69: AUM disclosure – Investment Management Business
AUM disclosure – Investment Management Business Assets under Management (Rs. Cr) Quarter ended Sep, 2019 Quarter ended Jun, 2020 Quarter ended Sep, 2020 Fund Type AUM1 Avg. AUM2 AUM1 Avg. AUM2 AUM1 Avg. AUM2 Equity 37,159 36,356 30,453 28,279 32,550 32,087 (Other than ELSS) Equity – ELSS 3,283 3,216
Slide 70: Product profile and Geographies
Product profile and Geographies ATS ATS Avg Tenor BUSINESS Major Geographies on o/s book on qtrly disb on disb Farm MP, Karnataka, UP, Bihar, Telangana, Rs. 3.1 Lakhs Rs. 4.0 Lakhs 43 months Equipment Maharashtra, Haryana, AP, WB Two Kolkata, Pune, Mumbai, Bangalore, Rs. 38k Rs. 65k 26 months Hydera
Slide 71: LTFH branch footprint
LTFH branch footprint 8 2 As of 30th September, 2020 10 1 No. of States & Union 21 & 1 13 Territories 14 4 10 No. of branches* 207 3 No. of Micro Loans meeting 16 29 13 1 1,446 centers** 6 7 No. of employees 22,079 25 9 1 12 13 6 3 *Also includes 1 branch in Dubai 70 **All these are in rural areas
Slide 72: Corporate Social Responsibility
Corporate Social Responsibility Directly linked to creating value FOCUS: GENERATION OF SUSTAINABLE RURAL LIVELIHOODS Digital financial inclusion Integrated Water Resource Management • 4,256 community members in Madhya Pradesh were provided employment • Practical training provided to 1500+ farmers on
Slide 73: Awards & Recognition
Awards & Recognition The Asset Triple A The Asset Triple A Asia Infrastructure Awards 2020 Asia Infrastructure Awards 2020 DX- CEO Renewable Energy IDC Digital Transformation Acquisition Financing Utility Deal of the Year Awards- India Deal of the Year (October, 2020) (July, 2020) (July, 2020) Busin
Slide 74: 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 30 years of experience across multiple domains in BFSI
Slide 75: Management Team
Management Team Dinanath Dubhashi Managing Director & CEO 30 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 76: 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 75
L&T Finance Holdings — Q2 FY2021 Earnings Presentation on 6ix