India Shelter Finance Corp. Ltd. · NSE:INDIASHLTR
India Shelter Finance — Investor Day (February 2025)
52 slides from India Shelter Finance's investor day presentation, Feb 24, 2025
Slide 1: Investor & Analyst Day
Investor Presentation Investor & Analyst Day February 24th, 2025 India Shelter Finance Corporation Limited
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (“Presentation”), which have been prepared by India Shelter Finance Corporation Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 3: Agenda
Agenda Company Overview & Vision Rupinder Singh - MD & CEO Aman Saini – Business Head Business in action & Credit Underwriting & Process Nitin Goel Credit & Operations Head Sharad Pareek – CRO Risk Management & Technology Showcase & Abhinav Arya – CIO Liability Overview & Financials Ashish Gupta - C
Slide 4: Company Overview and Vision
Company Overview and Vision - Rupinder Singh (MD & CEO) India Shelter Finance Corporation Limited 4
Slide 5: Who we are
Who we are Deep Vintage What we do Founded in 2010, India Shelter has a 15-year vintage that results in deep understanding of Focus on India Shelter provides affordable home loans and loan against property in Tier 2 the segment Underserved and 3 geographies in India for last 15 years Corporate Gover
Slide 6: Growth Journey
Growth Journey AUM (Rs. Crores) 40% CAGR (FY20-FY24) AUM crosses Crossed Rs. 6,000 Crs 250+ Branches IND RA: Upgraded to AA- (Stable) AUM crosses Rs. 7,500 crs PAT crosses Listed on CARE: Rs. 100 crs Upgraded to BSE, NSE 7,619 A+ (Positive) ICRA: Acquires Upgraded majority 6,084 to A- Presence in st
Slide 7: 9MFY25 Snapshot
9MFY25 Snapshot AUM Employees Gross & Net Stage 3 Rs. Crore 7,619 36% YoY 3,786 1.2% | 0.9% Disbursement States LTV1 Rs. Crore 2,422 28% YoY 15 52% PAT Branches ROA & RoE Rs. Crore 270 59% YoY 265 +5 Branches QoQ 5.5% | 14.7% Net Worth Average Ticket Size2 Credit Rating3 Rs. Crore Rs. Lakhs 2,595 10
Slide 8: Transformational Growth With Focus On Fundamentals
Transformational Growth With Focus On Fundamentals AUM (Rs. Crs) Disbursements (Rs. Crs) 1,520 2,199 3,073 4,359 6,084 7,619 551 895 1,295 1,964 2,646 1,899 2,422 FY20 FY21 FY22 FY23 FY24 9MFY25 FY20 FY21 FY22 FY23 FY24 9MFY24 9MFY25 PAT (Rs. Cr) RoA & RoE (%) 14.7% 14.0% 13.4% 12.8% 9.8% 5.7% 5.5%
Slide 9: Experienced Board with Industry Veterans
Experienced Board with Industry Veterans Chairman Independent Directors Parveen Gupta Rachna Dixit Savita Mahajan Thomson Thomas Ex-MD SBI Ex-Regional Ex-CIO HDFC Life Ex-Dean ISB Director RBI Nominee Directors Management Sudhin Choksey Ex-MD Gruh Finance 35+ yrs of BFSI experience Nominee Director
Slide 10: Strong Governance Structure
Strong Governance Structure Strong corporate governance framework in place for effective risk management Board Level Committees - 7 Board of Directors Willful Defaulter Audit IT Strategy RMC NRC CSR Committee SRC Review Committee Committee Committee Management Level Committees - 9 Management Team Sp
Slide 11: Professionally Managed Company
Professionally Managed Company Experienced Management Team with Strong Alignment of Interest with 9% ESOP Pool Rupinder Singh Ashish Gupta Sharad Pareek Nilay MD & CEO CFO CRO CHRO 22+ yrs of experience 20+ yrs of experience 24+ yrs of experience 24+ yrs of experience Nitin Goel Rohit Gaur Aman Sain
Slide 12: Housing Loan Landscape in India
Housing Loan Landscape in India India’s Mortgage-to-GDP Ratio: A Work in Progress India’s mortgage penetration is lower than other economies 15.0% 64% 60% 12.3% 9.9% 46% 8.0% 35% 7.0% 6.6% 28% 21% 12% 1.7% FY01 FY05 FY10 FY15 FY20 FY23 FY25P India South China Malaysia Europe USA UK Africa Source: CR
Slide 13: Drivers for Mortgage Penetration
Drivers for Mortgage Penetration Rising share of physical assets in overall savings Rising income levels as evident Acute housing shortage at bottom of from rising GDP/Capita the pyramid Government schemes providing push to Demographic dividend housing demand Rs. 807 Bn – Central Govt. 11.9 mn house
Slide 14: IPO Commentary vs. Delivery
IPO Commentary vs. Delivery Particulars Commentary Progress Number of States (#) Horizontal expansion and deepening of existing geographies On Track Number of Branches (#) 40-45 branch opening for next few years On Track AUM Growth (%) AUM growth guidance of 30-35% for next few years On Track Spread
Slide 15: Promoters & Shareholders
Promoters & Shareholders • First Investment in 2015 • Acquired majority stake in 2021 and tagged as Promoter • One of the largest, experienced & patient investor in India with long term horizon having an AUM of $ 7 Bn Key Institutional Investors 2.0% Investor % Holding 6.2% WestBridge 6.8% WestBridg
Slide 16: India Shelter @ 2030
India Shelter @ 2030 AUM to reach Rs. 30,000 Crs RoA at 4.0% 16
Slide 17: Business in action & Credit Underwriting Process
Business in action & Credit Underwriting Process - Aman Saini & Nitin Goel India Shelter Finance Corporation Limited 17
Slide 18: Team Structure & Business Presence
Team Structure & Business Presence India Shelter Finance Corporation Limited 18
Slide 19: Separate Hierarchy Of Key Functions
Separate Hierarchy Of Key Functions Sales, Underwriting & Collections Independent of each function Customer Ops & Cust. Legal Collection & Legal Credit Technical Acquisition Service Business Recovery Recovery Loan Officers Credit Manager Branch Service Branch Legal Tech. Manager Collection Manager L
Slide 20: Business Team Structure
Business Team Structure Customer Acquisition Branch Manpower Structure • 4 to 7 Loan Officers • 1 Branch Manager 1,600+ • 1 Credit Manager Loan Officers • 1 Operations Manager Branch 300+ • 1 Legal Manager – handling multiple branches Branch Manager • 1 Technical Manager – handling multiple branches
Slide 21: Increasing Depth over the Years
Increasing Depth over the Years Particulars FY15 Particulars FY21 Particulars Q3FY25 States 4 States 15 States 15 Branches 33 Branches 115 Branches 265 AUM (Rs. Crs) 228 AUM (Rs. Crs) 2,199 AUM (Rs. Crs) 7,619 21
Slide 22: Serving a Niche Customer Segment
Serving a Niche Customer Segment Sapna W/O Shishupal Rajput Salaried Customer Profile Self Employed Customer Profile Self Employed Who are they? Municipal Board, Lab Pharmacist, Optical Shop, Technicians, Manufacturing Grocery Vendor, Repair Shop, Units, Electricity Board, Post Small Transporter, Fu
Slide 23: Multiple Levers For Growth
Multiple Levers For Growth Loan Officer Productivity & Branch Vintage Penetration in Existing Geographies Operating Leverage Ticket Size increase of ~7-8% 23
Slide 24: Credit Process: Right blend of Field & Central Operations
Credit Process: Right blend of Field & Central Operations Processing at Field Central Support & Monitoring Collateral Legal Hindsight & Technical RCU Central Credit Credit, Policy Loan & Analytics Processing Central Operations Operations & Compliances 24
Slide 25: Summary: Core Process at India Shelter
Summary: Core Process at India Shelter Risk Containment Productivity Core Process Review & Digitalization Monitoring Maker Checker 25
Slide 26: Risk Management & Technology Showcase
Risk Management & Technology Showcase - Sharad Pareek & Abhinav Arya India Shelter Finance Corporation Limited 26
Slide 27: Risk Management
Risk Management Ensuring sustainable growth with prudent risk practices Credit Risk Operations risk Information Liquidity & Security Market Risk Compliance Collections / Recovery Risk 27
Slide 28: Credit Risk
Credit Risk Borrower Risk Assessment Scorecards Risk Based Pricing Policy & Governance Collateral Valuations Maintain LTV below NHB Property Type Customer Risk categorization threshold of 80% Residential: 99% Portfolio LTV is ~52% AML Screening & Leverage Radial STR Monitoring Functionality Business
Slide 29: India Shelter Technology Journey
-salndiaShelter Home Loans Secured AUA/KUA license from UIDAI * « 1st HFC to rollout Full . Mobile Apps stack Early Adoption 2018 _1stCloud of Salesforce Native AHFC 2013 x Woes " ; an System Full Stack builton Custom built on Cloud Salesforce CRM
Slide 30: Technology Landscape
Technology Landscape Enterprise Tech Partner App Layer Ecosystem Account Aggregator Digital KYC Checks CYBER SECURITY LAYER COMPLIANCE LAYER Social Media Connectors Payment Gateway E-SIGN E-STAMP Data Lake E-NACH AML Checks Cloud Telephony Document Credit Bureau Management System Pure SaaS Cloud Inf
Slide 31: Business Benefits of Tech Interventions
Business Benefits of Tech Interventions Ease of Doing Business Enhanced Employee • 6 Mobile Apps • Salesforce CRM based LOS Productivity • Account Aggregator based Banking Analysis • eSign & eStamping • Robotics Process Automation • 24x7 Bank Disbursement Integration 4 E’s Enhanced Risk Enriching Cu
Slide 32: Digital Adoption Metrics
Digital Adoption Metrics What it Translates to in Digital Public Infrastructure ( IndiaStack) India Shelter ? Catalyst 97% 40% + 78% E-Nach Mandates Account Aggregator Customers Registered Bank Statement on iServe Mobile App Analysis 96% Digital Collection like UPI, BBPS, iServe, Website etc. 98% 72
Slide 33: End to End Digital Process for Home Loans
End to End Digital Process for Home Loans IndiaShelter IndiaShelter IndiaShelter IndiaShelter IndiaShelter iSales iCredit iTech iCollect iServe Customer Credit Collateral Collections Customer Acquisition Underwriting Evaluation Management Service 33
Slide 34: Liability Overview & Financials
Liability Overview & Financials - Ashish Gupta (CFO) India Shelter Finance Corporation Limited 34
Slide 35: Well Diversified Borrowing Profile
Well Diversified Borrowing Profile… Borrowing Mix (%) Consistent Rating Upgrades Dec’24 2024 AA- (Stable) 1% 4% Term Loan 2023 A+ (Positive) 7% DA 13% Refinance 2022 A+ (Stable) 54% PTC 21% ECB 2019 A (Stable) NCD 2018 A- (Positive) 7 years 2016 A- (Stable) Avg. Tenure of Borrowings 2015 BBB+ (Stabl
Slide 36: Well Diversified Borrowing Profile (Lenders)
…Well Diversified Borrowing Profile Public Sector Banks Exposure 8% 13% 37% Private Bank 34% 41% Lender type wise split (%) Public Bank 28% Dec’24 NHB 37% DFI & Others 15% March'22 March'23 March'24 Dec'24 Lender Relationships Public Banks Others DFI & Private Banks 36
Slide 37: Cost of Fund treading down
Cost of Fund treading down India Shelter Cost of Funds (%) Cost of Funds movement vs. Industry (%) 11.0% 9.9% 8.7% 8.8% 8.8% 8.4% 8.4% 9.0% 7.0% 8.8% 8.8% 8.8% 8.8% 8.8% 8.4% 5.0% 8.3% 8.3% 8.2% 8.1% 3.0% 2.1% 1.4% 1.4% 0.7% 0.6% 0.5% 0.5% 0.4% 0.2% 1.0% 0.1% -0.2% -1.0% Q3 FY24 Q4 FY24 Q1 FY25 Q2 F
Slide 38: Consistent Growth in DA Volumes & Scaling up Co-Lending
Consistent Growth in DA Volumes & Scaling up Co-Lending DA Volumes (Rs. Crs) & DA/AUM (%) Co-lending Volumes Partner’s Share (Rs. Crs) % of Disbursements 6% 12 16 16 16 15 18% 7% Industry % % % % % Average 146 144 4% 82 170 273 441 451 352 442 FY21 FY22 FY23 FY24 Dec'23 Dec'24 FY24 9MFY24 9MFY25 DA
Slide 39: Comfortable Liquidity & Positive ALM
Comfortable Liquidity & Positive ALM Liquidity and Undrawn Sanctions (Rs. Crs) Strong ALM Surplus 354 <3 months 304 1,153 658 621 759 713 753 <6 months 311 599 932 451 480 433 1,143 326 <1 Year 1,468 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Liquidity Undrawn Sacntions 2,839 136 <3 Year 2,975 3,995 248 <5 Year 4,
Slide 40: Interest Rate Risk Reduced
Interest Rate Risk Reduced Disbursement Mix (%) AUM Mix (%) 15% 20% 37% 33% Fixed Rate Portfolio funded by Variable 54% 51% Rate Funding 34% Fixed Rate Portfolio Variable 88% funded by Equity Fixed 38% 8% Fixed Rate Portfolio 29% 39% Funded by Fixed Rate Funding 35% 11% Variable Rate 14% 18% Portfol
Slide 41: Operating Leverage
Operating Leverage Opex to Disbursements (%) Opex to AUM (%) 10.3% 5.1% 4.9% 9.2% 9.2% 8.9% 4.5% 4.3% 8.4% 8.4% 8.0% 7.7% 3.1% 3.1% 2.8% 2.9% 2.3% 1.8% 1.4% 1.4% 1.9% 1.5% 0.9% 0.8% FY22 FY23 FY24 9MFY25 FY22 FY23 FY24 9MFY25 Spread Industry Average ISFC Spread Industry Average ISFC 41
Slide 42: Credit Cost & Provisioning
Credit Cost & Provisioning Credit Cost (%) GNPA & PCR (%) 23% 35% 30% 26% 26% 25% 25% 0.9% 0.9% 0.5% 0.4% 0.4% 0.4% 0.3% 1.4% 1.3% 1.9% 2.1% 1.1% 1.0% 1.2% FY19 FY20 FY21 FY22 FY23 FY24 9MFY25 FY19 FY20 FY21 FY22 FY23 FY24 9MFY25 42
Slide 43: RoA & RoE Trajectory
RoA & RoE Trajectory India Shelter Finance Corporation Limited 43
Slide 44: RoA & RoE Trajectory
RoA & RoE Trajectory Current Stable State Particulars Rationale 2.8x Leverage 4x Leverage Yield 14.9% 14.6% Cost of Funds (8.8%) (8.6%) Rating Benefit Spread 6.1% 6.0% PF Amortization 0.3% 0.3% Stable Negative Carry-on Liquidity (0.2%) (0.2%) Stable Gross Spread 6.2% 6.1% Cross Sell 0.8% 0.6% Stable
Slide 45: Financials
Financials India Shelter Finance Corporation Limited 45
Slide 46: Profit & Loss Statement - Quarterly
Profit & Loss Statement - Quarterly Particulars (Rs. Cr.) Q3FY25 Q3FY24 YoY Q2FY25 QoQ Interest Income on loans 233.9 169.3 38% 216.0 8% Net Gain on Direct Assignments 27.2 19.9 - 27.1 - Other Income 43.3 29.2 - 40.3 - Total Income 304.4 218.4 39% 283.4 7% Finance Cost 91.7 73.6 24% 84.2 9% Net Tota
Slide 47: Profit & Loss Statement – Nine Months
Profit & Loss Statement – Nine Months Particulars (Rs. Cr.) 9MFY25 9MFY24 YoY Interest Income on loans 650.5 470.3 38% Net Gain on Direct Assignments 79.3 62.2 - Other Income 118.7 84.5 - Total Income 848.5 617.0 38% Finance Cost 252.2 212.7 19% Net Total Income 596.3 404.2 48% Operating Expenses 22
Slide 48: Profit & Loss Statement – Annual
Profit & Loss Statement – Annual Particulars (Rs. Cr.) FY24 FY23 FY22 FY21 FY20 Interest Income on loans 660.6 476.7 353.2 257.7 202.6 Net Gain on Direct Assignments 79.1 43.9 49.7 29.2 - Other Income 121.7 85.7 56.9 35.9 27.3 Total Income 861.4 606.2 459.8 322.8 229.9 Finance Cost 287.0 208.7 147.4
Slide 49: Balance Sheet
Balance Sheet Particulars (Rs. Cr.) Dec-24 Dec-23 March-24 Sources of Funds Share Capital 53.9 53.5 53.5 Reserves & Surplus 2,540.8 2,155.3 2,245.1 Borrowings 4,549.8 3,512.7 3,415.1 Other liabilities & provisions 122.8 86.7 80.4 Total 7,267.3 5,808.3 5,794.2 Application of Funds Loan Assets 6,350.3
Slide 50: ROE Tree & Key Ratios
ROE Tree & Key Ratios Particulars (Rs. Crs) Q3FY25 Q3FY24 Q2FY25 9MFY25 9MFY24 FY24 Total Revenue to Average Total Assets 17.6% 16.5% 17.8% 17.3% 16.3% 17.1% Finance cost to Average Total Assets 5.3% 5.6% 5.3% 5.1% 5.6% 5.7% Net Income to Average Total Assets 12.3% 11.0% 12.5% 12.2% 10.7% 11.4% Oper
Slide 51: Financial Snapshot – 10 years
Financial Snapshot – 10 years Particulars FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Operational Branches 31 33 47 61 64 81 86 115 130 183 223 States 4 5 7 8 8 12 12 15 15 15 15 Active Live Accounts 5,304 8,552 12,823 15,730 20,117 24,354 27,602 33,607 43,328 58,552 80,791 Employees 255
Slide 52: Thank You
Thank You For further information, please contact: Rahul Rajagopalan Head – Investor Relations investorrelations@indiashelter.in