Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — Q2 FY2022-23 Earnings Presentation
47 slides from Sammaan Capital's earnings presentation, Nov 14, 2022
Slide 1: Unaudited Financial Results – Q2 FY2022-23
Unaudited Financial Results – Q2 FY2022-23 November 14, 2022
Slide 2: Contents
Contents Pg. No. 1. Business Update 03 2. Scalable Retail Asset-Light Business Model 04 3. Stable Asset Quality 05 4. Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet 06 6. Effective Oversight: Independent Chairman, Strong Board, Audit Committee 07 7. Appendix 08 8.
Slide 3: Business Update: Stable Performance Forming Base for Growth
Business Update: Stable Performance Forming Base for Growth Particulars Q2 FY22-23 Q1 FY22-23 Balance sheet 75,812 75,794 PAT 289 287 Net Gearing 2.5x 2.5x CRAR 34% 34% Tier-1 28% 28% Particulars H1 FY22-23 H1 FY21-22 PAT 576 568 • Balance sheet, loan book and AUM have stabilized. Base formed for ~1
Slide 4: Scalable Retail Asset-Light Business Model
Scalable Retail Asset-Light Business Model Moving Towards a Multi-bank Marketplace • Of the 7 partner banks and FIs, IBH has completed technical integration with 4. Tech integration with all 7 will be completed within FY23 itself • IBH is moving towards a multi-bank marketplace for co-lending and se
Slide 5: Stable Asset Quality
Stable Asset Quality Q2 FY23 Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Gross NPA 2,123 2,159 2,318 2,350 2,074 Gross NPA % 2.94% 2.96% 3.21% 3.18% 2.69% Net NPA 1,227 1,252 1,364 1,334 1,179 Net NPA % 1.70% 1.71% 1.89% 1.80% 1.53% Stage 3 Provisions/ Gross NPA 42% 42% 41% 43% 43% Amounts in ₹ Cr • Total provi
Slide 6: Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet
Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet 72,119 72,119 60,323 56,885 50,409 51,478 52,260 43,056 39,171 29,045 20,149 13,414 12,777 8,171 9,541 6,013 7,199 3,862 5,440 132 263 645 1d-14d 15d-1m 1m-2m 2m-3m 3m-6m 6m-1yr 1yr-3Yr 3Yr-5Yr 5Yr-7yr 7Yr-10yr 10Yr+
Slide 7: Effective Oversight: Independent Chairman, Strong Board, Audit Committee
Effective Oversight: Independent Chairman, Institutional Investor Oversight, Strong Board, Audit Committee Board led by ex-RBI Deputy Governor and majority independent directors: Independent, Non-Executive director Mr. S. S. Mundra, Ex-Deputy Governor of the Reserve Bank of India, is the chairman of
Slide 8: Appendix
Indiabulls HOUSING FINANCE Appendix
Slide 9: Financial and Operational Highlights
Financial and Operational Highlights 9
Slide 10: Balance Sheet Assets
Balance Sheet Assets 15% 6% Loan Book Cash & Cash Equivalents Other Assets 78% 10
Slide 11: Asset Composition
Asset Composition 15% 29% 56% Retail Mortgage Loans Commercial Real Estate Loans Business Loans • Book spread expanded to 3.1% at end of Q2FY23 from 2.7% at end of Q1FY23 11
Slide 12: Liabilities Profile
Indiabulls HOUSING FINANCE Liabilities Profile 12
Slide 13: Liabilities
Liabilities 22% 5% 73% Shareholders' Funds Borrowings* Other Liabilities * Including securitization liability 13
Slide 14: Funding Mix
Funding Mix 4% 5% 4% 23% 23% 31% 33% 31% 28% 39% 41% 37% Sep-20 Sep-21 Sep-22 Non-Convertible Debentures Bank Loans Assignment/ Securitization/ Co-Lending ECB ECB: External Commercial Borrowing 14
Slide 15: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Total Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Cash & Investments 5,223 5,223 5,679 7,974 9,462 7,372 8,378 8,082 Customer Repayments 59,424 4,318 3,873 4,046 2,689 2,832 2,584 2,523 Non Current Assets 7,472 - - -
Slide 16: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Cash & Investments 9,190 7,960 9,147 9,717 9,782 10,126 10,424 11,570 Customer Repayments 2,291 2,476 2,192 2,118 2,006 1,654 2,383 1,065 Non Current Assets - - - - -
Slide 17: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q2FY27 Q3FY27 Q4FY27 Q1FY28 Q2FY28 Q3FY28 Q4FY28 Q1FY29 Cash & Investments 10,617 7,967 7,998 9,138 9,216 7,353 8,596 5,235 Customer Repayments 1,392 852 1,949 1,036 906 1,616 815 760 Non Current Assets - - - - - - - - Tot
Slide 18: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q2FY29 Q3FY29 Q4FY29 Q1FY30 Q2FY30 Q3FY30 Q4FY30 Q1FY31 Q2FY31 Cash & Investments 5,703 5,187 4,701 4,539 4,872 5,408 5,690 6,030 6,236 Customer Repayments 722 701 695 485 684 414 465 323 376 Non Current Assets - - - - - -
Slide 19: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q3FY31 Q4FY31 Q1FY32 Q2FY32 Q3FY32 Q4FY32 Q1FY33 Q2FY33 10+Years Cash & Investments 6,562 6,873 7,131 7,353 7,573 7,785 7,994 8,063 5,247 Customer Repayments 362 309 273 271 263 261 121 115 4,209 Non Current Assets - - - -
Slide 20: Home Loan Profile: Focus on Mid-Income Affordable Housing
Home Loan Profile: Focus on Mid-Income Affordable Housing Urban Semi-Urban Home Loans Home Loans Average Loan Size ₹ 35 Lakhs ₹ 25 Lakhs Maximum Loan to Value 80% 80% Average Loan to Value 73% [at origination] 70% [at origination] Average Loan Term 15 years Average Customer Age 38 years Primary Secu
Slide 21: Smart City Home Loan: Technology-led Cost-effective
Smart City Home Loan: Technology-led Cost-effective Delivery through eHomeLoans Platform Minimum Loan Size ₹ 7 Lakhs Average Loan Size ₹ 10 Lakhs Maximum Loan Size ₹ 40 Lakhs Maximum Loan to Value 80% [at origination] Maximum Loan Term 20 years Average Customer Age 39 years Primary Security Mortgage
Slide 22: Loan Against Property Product Profile
Loan Against Property Product Profile Average Loan Size ₹ 73 Lakhs 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 Average Age of Business 7 years Basis of Credit Appraisal
Slide 23: Smart City LAP: Technology-led Cost-effective
Smart City LAP: Technology-led Cost-effective Delivery through eHomeLoans Platform Minimum Loan Size ₹ 10 Lakhs Average Loan Size ₹ 25 Lakhs Maximum Loan Size ₹ 50 Lakhs Maximum Loan to Value 55% [at origination] Average Loan to Value 40% Maximum Loan Term 10 years Average Loan Term 5 years Average
Slide 24: Beginning of a Long Term Property Market Up-cycle
Beginning of a Long Term Property Market Up-cycle 24
Slide 25: Mortgage Market in India
Mortgage Market in India • Since 2013, property prices have grown at 1-2% CAGR, significantly below inflation [ 5% CAGR] and wage growth [8% per capita] • Consequently, ‘Affordability’ [ratio of house price to annual salary] is at at its best in the last 25 years • Benign interest rates further bo
Slide 26: Growth Momentum in Residential Real Estate
Growth Momentum in Residential Real Estate Sales pick-up • Housing sales in top 8 Indian cities recorded 15% YoY growth in Q3 CY2022 with 73,691 units being sold1: ‐ Total housing sales in Q3 CY2022 in top 8 Indian cities recorded a ~20% increase compared to the quarterly average sales observed duri
Slide 27: Commercial Office Space Absorption
Commercial Office Space Absorption • Commercial office space absorption registered a growth of 29% YoY in Q3 CY2022 with 16.1 million sq. ft. office space getting transacted in top eight cities in India1 - In Q3 CY2022, Ahmedabad, Mumbai and Bengaluru have grown 117%, 82% and 71% YoY respectively -
Slide 28: Static Credit Performance Analysis of LAP and HL Pools
Static Credit Performance Analysis of LAP and HL Pools 28
Slide 29: Retail Loan Book of Highest Quality
Retail Loan Book of Highest Quality Portfolio performance of all sold down pools of ₹ 77,887 Cr Initial Pool Details of Initial POS Average Sold Down Pool Loan Pool Disbursement Ticket Size Months on Amortisation Principal Principal [On Disbursement 90+ dpd % 180+ dpd % Type [₹ Cr] [at disbursement]
Slide 30: Home Loans Pool Performance Factsheet: Experian Credit Bureau
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 1 Bank 22 31-Dec-1
Slide 31: Home Loans Pool Performance Factsheet: Experian Credit Bureau
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 29 Bank 18 31-Oct-
Slide 32: Home Loans Pool Performance Factsheet: Experian Credit Bureau
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 57 Bank 11 14-May-
Slide 33: LAP Pool Performance Factsheet: Experian Credit Bureau
LAP Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 1 Bank 2 30-Mar-15 1,067.
Slide 34: Home Loans and LAP Pool Performance Factsheet PTC and PCG Pools
Home Loans and LAP Pool Performance Factsheet PTC and PCG Pools HL Pools Initial Pool Details of Initial POS Sold Down Pool Sold Down Disbursement Amortis- 90+ 180+ Sr No Investor Principal MPS Principal [₹ CCR MCR QCR Rating from Date [₹ Cr] ation# dpd % dpd % [₹ Cr] Cr] 1 Bank 2 20-Mar-14 335.4 31
Slide 35: Corporate Social Responsibility
Corporate Social Responsibility 35
Slide 36: Indiabulls Foundation: Corporate Social Responsibility
Indiabulls Foundation: Corporate Social Responsibility Health JanSwasthya Kalyan (JSK) Vahika- Mobile Medical Vans - Free primary healthcare services provided at doorstep to the underprivileged population of urban slums with 15 JSK- mobile medical vans - 18,735 patients diagnosed and treated in this
Slide 37: Ratings, Key Ratios, Valuations, and Shareholding
Ratings, Key Ratios, Valuations, and Shareholding 37
Slide 38: Credit Ratings
Credit Ratings Rating Agency Long Term Credit Rating CRISIL [an S&P Global Company] AA ICRA [a Moody’s Investors Service Company] AA CARE Ratings AA Brickwork Ratings AA+ CRISIL has completed its surveillance in Sep 2022 and reaffirmed the credit ratings 38
Slide 39: Productivity Ratios
Productivity Ratios FY FY FY FY FY FY FY FY FY FY FY 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 No. of 4,243 4,072 4,099 4,840 5,453 6,388 8,111 8,676 5,405 3,480 4,603 Employees Profit per 0.24 0.31 0.38 0.39 0.43 0.46 0.47 0.47 0.41 0.35 0.26 employee [₹ Cr] Asset per 5.85 8.09 10.84 1
Slide 40: Key Financial Metrics
Key Financial Metrics FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Pre Tax RoAA [%] 4.9% 4.9% 4.8% 4.9% 4.9% 4.6% 4.3% 4.2% 2.2% 1.6% 1.8% Post Tax RoAA [%] 3.7% 3.8% 3.8% 3.7% 3.7% 3.6% 3.3% 3.0% 1.9% 1.3% 1.3% RoE [%] 22% 26% 27% 29% 26% 26% 30% 24% 18% 7.5% 7.2% Ca
Slide 41: Valuations and Returns
Valuations and Returns Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Sep-22* Market Price 207 272 286 558 674 998 1,194 744 228 193 157 135 per Share [₹] Dividend per 13 20 29 35 36 36 42 40 21 9 - - Share [₹] Dividend Yield 6.3% 7.4% 10.2% 6.3% 5.3% 3.6% 3.5% 5.4% 9.2
Slide 42: Shareholding Pattern
Shareholding Pattern 4.9% 9.6% 24.1% 50.3% 11.1% Founder Foreign Institutional Shareholding MFs/Banks/IFI Public Pragati MF: Mutual Funds; IFI: Indian Financial Institutions As on 30th Sept, 2022 42
Slide 43: Detailed Financials
Indiabulls HOUSING FINANCE Detailed Financials 43
Slide 44: Consolidated Income Statement
Consolidated Income Statement (₹ in Billions) Quarter ended Six Months ended Year ended Particulars 30.09.22 30.06.22 30.09.21 30.09.22 30.09.21 31.03.22 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) 1 Revenue from operations (i) Interest Income 21.26 19.80 21.96 41.06 44.88
Slide 45: Consolidated Balance sheet
Consolidated Balance sheet Statement of Assets and Liabilities: (₹ in Billions) As at As at Particulars 30.09.22 31.03.22 (Unaudited) (Audited) ASSET S (1) Financial Assets (a) Cash and cash equivalents 39.42 79.86 (b) Bank balance other than Cash and cash 17.61 16.67 equivalents (c) Derivative fina
Slide 46: Safe Harbour Statement
Safe Harbour Statement This document contains certain forward-looking statements based on current expectations of Indiabulls Housing Finance Ltd. management (“IBH”). These forward looking statements and any other projections contained herein are predictions and involve known and unknown risks, uncer
Slide 47: Thank you
Indiabulls HOUSING FINANCE Thank you
Indiabulls Housing Finance — Q2 FY2022-23 Earnings Presentation on 6ix