Indostar Capital Finance Limited · NSE:INDOSTAR
Indostar Capital Finance — Q1 FY2025 Earnings Presentation
51 slides from Indostar Capital Finance's earnings presentation, Aug 1, 2024
Slide 1: Exchange filing cover letter
ICFL/LS/0091/2024-25 01 August 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.: Inves
Slide 2: IndoStar Capital Finance Investor Presentation – July 2024
INDOSTAR CAPITAL FINANCE Investor Presentation – July 2024
Slide 3: Safe Harbor
Safe Harbor 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 to purchase or subscribe for
Slide 4: IndoStar 2.0
INDOSTAR 2.0 Focus on Higher Yield Diversifying Liability Asset Quality Cost Optimization products Franchise o Recalibrated with high yield, low ticket size o Improved underwriting o IndoStar’s rating upgraded to ‘AA-’ with o Leveraging technology across loan secured products processes/controls ensu
Slide 5: Continued Focus Areas
Continued Focus Areas Continuously evolving Expanding the use of Ensuring a robust Digitalization product offerings data and systems balance sheet Expanding distribution Expanding customer Automating controls and Being agile and footprint lifetime value alerts to minimize risk future-ready 4
Slide 6: Key Performance Highlights – Q1FY25
Key Performance Highlights – Q1FY25 Consolidated AUM Disbursements NIMs ₹ 9,565 crs ₹ 1,627 crs 6.0% Q1FY24: ₹ 8,062 crs Q1FY24 : ₹ 1,116 crs Q1FY24: 6.5% Gross Stage 3 Net Stage 3 CRAR 4.19% 2.08% 27.7% CRAR Q1FY24: 6.56% Q1FY24: 3.14% Q1FY24: 34.4% Net Total Income PAT Branches ₹ 191.3 crs ₹ 24.9
Slide 7: Changing Portfolio Mix Driven by Retailisation Strategy
Changing Portfolio Mix Driven by Retailisation Strategy Consolidated Break-up of Asset Under Management (₹ crs)* Retailisation Strategy Playing Out 10,150 8,998 9,658 7,813 8,763 9,565 26% 388 451 371 1,543 1,200 485 (4%) (4%) 1,932 (16%) (15%) (6%) (5%) 2,930 (22%) FY2018 (29%) 2,270 2,395 1,776 1,
Slide 8: Retailisation Strategy Playing Out
Retailisation Strategy Playing Out Consolidated Disbursements: Retail (₹ crs) Disbursements: Retail (₹ crs) +71.22% 5,190 1,726 4,885 1,618 937 302 563 211 579 1,298 1,221 224 221 945 840 2,356 190 347 1,937 183 4,253 1,424 1,407 3,743 14 363 1,609 1,618 487 1,074 374 211 442 1,000 1 324 107 755 288
Slide 9: Declining Non-performing Assets
Declining Non-performing Assets Consolidated Consolidated NPA Trends (%) Total Provisioning as % of Loan Assets 6.6% 6.7% 56.8% 57.2% 53.7% 51.5% 51.5% 5.3% 4.1% 4.2% 3.3% 3.1% 2.4% 2.1% 1.8% 7.5% 5.6% 4.9% 4.0% 3.6% Q1 FY24 Q2FY24 Q3FY24 Q4FY24 Q1 FY25 Q1 FY24 Q2FY24 Q3FY24 Q4FY24 Q1 FY25 Gross Sta
Slide 10: National Footprint Creating Runway for Growth
National Footprint Creating Runway for Growth Consolidated No States 541 Branches Across 23 States 1 HIMACHAL PRADESH – 2 2 PUNJAB – 10 2 515 541 3 UTTARAKHAND – 9 476 493 10 452 122 4 HARYANA – 12 119 124 9 99 108 5 NEW DELHI – 2 38 31 27 6 UTTAR PRADESH- 34 9 391 419 7 RAJASTHAN – 36 30 6 315 337
Slide 11: IndoStar Capital Finance Limited
IndoStar Capital Finance Limited
Slide 12: Key Performance Highlights – Q1FY25 (ICF Standalone)
Key Performance Highlights – Q1FY25 ICF Standalone AUM Disbursements NIMs ₹ 7,170 crs ₹ 1,416 crs 5.8% Q1FY24: ₹ 6,321 crs Q1FY24 : ₹ 926 crs Q1FY24: 6.4% Gross Stage 3 Net Stage 3 CRAR 4.97% 2.36% 27.7% CRAR Q1FY24: 7.85% Q1FY24: 3.70% Q1FY24: 34.4% Net Total Income PAT Branches ₹ 143.8 crs ₹ 10.8
Slide 13: Expanding the used CV portfolio
Expanding the used CV portfolio ICF Standalone Break-up of Asset Under Management (₹ crs) Retail Disbursements (₹ crs) 8,002 8,252 6,190 6,493 7,170 4,307 4,253 388 371 (5%) 1,543 1,200 485(6%) 451 564 1,932 (19%) (6%) (19%) (8%) (24%) 1,776 1,293 1,849 (22%) (21%) (23%) 5,594 6,323 (88%) 3,743 +86%
Slide 14: Movement of Non-performing Assets
Movement of Non-performing Assets ICF Standalone NPA trends (%) Collection Efficiency (Inc Overdue)(%) 7.9% 8.1% 99.1% 100.9% 96.3% 94.7% 93.3% 6.5% 4.97% 4.97% 4.0% 3.7% 2.8% 2.36% 2.09% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Gross Stage 3 Net Stage 3 13
Slide 15: Consistent improvement in Stage 3 assets
Consistent improvement in Stage 3 assets ICF Standalone Particulars (₹ crs) Q1FY25 Q4FY24 Q3FY24 Q2FY24 Q1FY24 Gross Stage 1 & 2 6,695 5,985 5,358 5,068 5,484 ECL Stage 1 & 2 125 126 133 145 285 Net Stage 1 & 2 6,570 5,859 5,225 4,923 5,199 ECL Provision % 1.87% 2.1% 2.5% 2.9% 5.2% Particulars (₹ cr
Slide 16: Diversified Borrowing Profile Supported by Capital Adequacy
Diversified Borrowing Profile Supported by Capital Adequacy ICF Standalone Diversified Funding Mix (June 2024) Net-worth and Capital Adequacy 4,835 4,638 5,328 6,049 6,171 34% 33% 32% 29% 28% 1% 4% 1% 3,078 3,102 3,165 7% 6% 3,054 3,065 20% 17% 24% 19% 21% 28% 22% Net-worth (₹ crs) 28% 20% 42% 51% 5
Slide 17: Credit Rating remains Strong
Credit Rating remains Strong ICF Standalone 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 CARE AA (–) CRISIL AA (–) Increas
Slide 18: CV Finance
—! INDOSTAR “Your Path To A Better Life” CV Finance
Slide 19: Industry Overview
Industry Overview Commercial Vehicle Industry Commercial Vehicles are a proxy for economic growth Provides direct / indirect employment to more than 50 Mn people GDP Growth of 6%+, Robust Tax collections, Transparent / focused policies are Over 70% of the goods/ people movement is by Road Transport
Slide 20: Commercial Vehicle Finance
Commercial Vehicle Finance Average Loan to Value Used Vehicle Disbursement Disbursements Yield AUM of Average Ticket Size of Presence across Ratio is 73.4% in Q1FY25 of 98% remains same in ~18.4% ₹ 6,323 crs ₹ 7.7 Lakhs 23 States vis-à-vis 74.0% in Q1FY25 Gross Stage 3 of 4.9% & Q1FY24 Net Stage 3 o
Slide 21: CV Finance : Key Operational Parameters
CV Finance : Key Operational Parameters AUM (₹ crs) Loan to Value (%) 6,323 5,594 78.0% 4,850 4,383 74.0% 73.8% 73.4% 3,928 73.0% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Average Ticket Size (₹ lakhs) AUM Mix (Geography –Wise) (%) 8.3 8.2 8.2 19% 7.6 7.7 27% North South
Slide 22: CV Finance : Key Operational Parameters
CV Finance : Key Operational Parameters Disbursements (₹ crs) Disbursements Yield (%) 1,424 1,407 1,074 1,000 18.2% 18.4% 755 17.8% 17.9% 17.9% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Disbursement Mix (Product) (%) Disbursement Mix (Geography) (%) Disbursement Mix (New/
Slide 23: Focus on Digitisation to drive Employee Productivity
Focus on Digitisation to drive Employee Productivity Loan value disbursed/salesperson/month (INR lakhs) Driven by new Loan Origination System (LOS) launch in March’23 Key features that reduced processing time: One-click: API driven address, identity proof and vehicle check +26.5% Automated bank stat
Slide 24: IndoStar Home Finance Private Limited
IndoStar Home Finance Private Limited
Slide 25: Indian Affordable Housing Finance Market expected to show Significant Growth
Indian Affordable Housing Finance Market expected to show Significant Growth 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 17.1 35% sizes less than Rs
Slide 26: Future Ready to Seize Affordable Housing Market Opportunity
Future Ready to Seize Affordable Housing Market Opportunity Management Team Geographical Focus Ecosystem Play Robust Underwriting Micro LAP Play • Seasoned management • Geographical focus on • Remote access to • Centralized underwriting • Presence in tier 3 and 4 team supported by South & West India
Slide 27: Key Performance Highlights – Q1FY25 (HFC Standalone)
Key Performance Highlights – Q1FY25 HFC Standalone AUM Disbursements NIMs Gross Stage 3 ₹ 2,395 crs ₹ 211 crs 7.1% 1.3% Q1FY24: ₹ 1,741 crs Q1FY24 : ₹ 190 crs Q1FY24 : 7.9% Q1FY24 : 1.2% Net Total PAT Net Stage 3 CRAR Income 1.1% 56.2% ₹ 49crs ₹ 14 crs Q1FY24 : 0.9% Q1FY24 : 73.4% Q1FY24 : ₹ 37 crs
Slide 28: Focusing on Growing Housing Finance Book
Focusing on Growing Housing Finance Book HFC Standalone Housing Finance – AUM Housing Finance – Disbursements (₹ crs) (₹ crs) 2,395 301 2,270 2,047 1,894 1,741 221 224 211 190 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1 FY24 Q2FY24 Q3FY24 Q4FY24 Q1 FY25 27
Slide 29: Housing Finance : Key Operational Parameters
Housing Finance : Key Operational Parameters HFC Standalone Average Ticket Size (₹ lakhs) Live Accounts 30,498 28,923 9.0 9.0 9.0 9.0 9.0 26,216 24,095 21,975 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Loan to Value (%) Geographical Distribution (Value –Wise) (%) 3% 3% 4%
Slide 30: Housing Finance : Key Financial Parameters
Housing Finance : Key Financial Parameters HFC Standalone AUM (₹ crs) Gross Stage 3 & Net Stage 3 (%) 1.90% 1.80% +25% 2,270 2,395 1.25% CRAR 1.34% 1.13% Gross Stage 3 1.40% 56.2% 1,623 1.10% Net Stage 3 1,406 1.05% Q1 FY25 0.90% 0.81% 996 FY 21 FY 22 FY23 FY24 Q1FY25 FY 21 FY 22 FY23 FY24 Q1FY25 PP
Slide 31: Catering to Underpenetrated Segments across Product Types
Catering to Underpenetrated Segments across Product Types HFC Standalone 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 Helpers Micro
Slide 32: Process Excellence: Credit & Underwriting
Process Excellence: Credit & Underwriting HFC Standalone CREDIT & UNDERWRITING Assessment of Total Income (Individual & Evaluation of Profile and Property Risk Evolving Underwriting Processes Household) • Collecting KYCs -Aadhar, PAN, Credit history checks with • Building self learnings in the credi
Slide 33: Process Excellence: Collections & Monitoring
Process Excellence: Collections & Monitoring HFC Standalone Collection Process Pre Bounce / Delinquency • Use of Bounce prediction tool which provides with the pool of customers with high probability where focused efforts are put in to collect advance EMIs to avoid bounce • Sales team is responsible
Slide 34: Analytics driven Risk Management to control Delinquency
Analytics driven Risk Management to control Delinquency HFC Standalone Key Risk Management Aspects Monitored ✓ Robust dashboards developed in the system to enable real time monitoring of mentioned parameters Roll Rate Analysis Lagged Bounce Rate Analysis ✓ Dashboards are sent to branch managers to e
Slide 35: Financial Performance
—! INDOSTAR “Your Path To A Better Life” Financial Performance
Slide 36: ICF Standalone - Income Statement
ICF Standalone - Income Statement ICF Standalone Particulars (₹ in crs) Q1FY25 Q4FY24 Q-o-Q Q1FY24 Y-o-Y FY24 FY23 Y-o-Y Revenue from operations 304.2 390.7 241.2 1,104.2 968.9 Interest expenses 166.8 161.9 133.1 581.2 518.0 Net Interest Income 137.4 228.7 (39.9%) 108.1 27.1% 523.0 450.9 16.0% Other
Slide 37: ICF Standalone - Balance Sheet
ICF Standalone - Balance Sheet ICF Standalone Equity & Liabilities (₹ in crs) Jun’24 Mar’24 Jun’23 Assets (₹ in crs) Jun’24 Mar’24 Jun’23 Financial Liabilities Financial Asset Trade payables 4.9 1.3 5.8 Cash and cash equivalents 79.0 387.7 623.2 Bank balance other than cash & cash equivalent 287.5 2
Slide 38: HFC - Income Statement
HFC - Income Statement HFC Standalone Particulars (₹ in crs) Q1FY25 Q4FY24 Q-o-Q Q1FY24 Y-o-Y FY24 FY23 Y-o-Y Revenue from operations 85.3 83.7 59.3 290.1 208.3 Interest expenses 36.3 33.5 22.7 107.6 65.2 Net Interest Income 49.0 50.2 (2.3%) 36.6 34.1% 182.4 143.1 27.5% Other Income 0.0 0.2 0.2 0.4
Slide 39: HFC - Balance Sheet
HFC - Balance Sheet HFC Standalone Equity & Liabilities (₹ in crs) Jun’24 Mar’24 Jun’23 Assets (₹ in crs) Jun’24 Mar’24 Jun’23 Financial Liabilities Financial Asset Trade payables 20.0 19.9 23.3 Cash and cash equivalents 127.1 221.4 65.2 Debt Securities 74.8 53.3 30.6 Bank balance other than cash &
Slide 40: Consolidated - Income Statement
Consolidated - Income Statement Consolidated Particulars (₹ in crs) Q1FY25 Q4FY24 Q-o-Q Q1FY24 Y-o-Y FY24 FY23 Y-o-Y Revenue from operations 389.6 474.4 299.1 1,393.0 1,174.3 Interest expenses 203.1 195.4 154.4 687.3 580.3 Net Interest Income 186.5 279.0 (33.2%) 144.7 28.9% 705.6 594.1 18.8% Other I
Slide 41: Consolidated - Balance Sheet
Consolidated - Balance Sheet Consolidated Equity & Liabilities (₹ in crs) Jun’24 Mar’24 Jun’23 Assets (₹ in crs) Jun’24 Mar’24 Jun’23 Financial Liabilities Financial Asset Trade payables 5.0 1.4 5.8 Cash and cash equivalents 210.9 613.9 693.0 Debt Securities 3,663.7 3,341.0 1,898.0 Bank balance othe
Slide 42: Historical - Consolidated Income Statement
Historical - Consolidated Income Statement Consolidated 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 Total Income 710.2 599.4 634.
Slide 43: Historical - Consolidated Balance Sheet
Historical - Consolidated Balance Sheet Consolidated 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 7,139.3 Investments 1,118.2 1,039.4
Slide 44: Historical - Consolidated Balance Sheet
Historical - Consolidated Balance Sheet Consolidated 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 4,245.5 3,994.8 Other financial
Slide 45: Ownership Structure and Management Team
Ownership Structure and Management Team
Slide 46: Large Global Private Equity Parentage
Large Global Private Equity Parentage Shareholding Pattern (As on June 2024) Shareholders % 22.50% Promoters 73.60 2.12% BCP V Multiple Holdings Pte Ltd (Brookfield) 56.20 1.78% Everstone Group 17.40 73.60% Domestic Institutional Investors 1.78 ICICI Prudential Life Insurance Company Limited 1.36 Pr
Slide 47: Experienced Management Team - IndoStar
Experienced Management Team - IndoStar Randhir Singh Karthikeyan Srinivasan Whole-Time Director and Executive Vice Chairman - ICF Chief Executive Officer and Whole-Time Director - ICF o He is a seasoned financial leader with 29 years of experience in o He has over 30 years of experience in the areas
Slide 48: Experienced Management Team
Experienced Management Team Shreejit Menon Chief Executive Officer - HFC o He is a Commerce Graduate and has a Master’s degree in Management Studies from University of Mumbai o He has several years of experience with financial institutions like Religare Housing Development Finance Corporation Limite
Slide 49: Esteemed Board of Directors
Esteemed Board of Directors Bobby Parikh Chairman and Non-Executive Independent Director o He has nearly three decades of experience in financial services industry/reorganizations o His area of focus is providing tax and regulatory advice in relation to transactions and other forms of business reorg
Slide 50: Esteemed Board of Directors
Esteemed Board of Directors Dhanpal Jhaveri Non–Executive Director o He has over two decades of experience in investments, strategy, M&A and investment banking. Currently, he is a Managing Partner at the Everstone Group o He holds a degree in Bachelor of Commerce from the University of Mumbai and an
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 INVESTOR RELATIONS ADVISORS Orient Capital (a division of Link Group) Thank You Mr. Nikunj Jain Mr. Viral Sanklecha +91 9769
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