Indostar Capital Finance Limited · NSE:INDOSTAR

Indostar Capital Finance — Q3 FY2022 Earnings Presentation

45 slides from Indostar Capital Finance's earnings presentation, Feb 12, 2022

  1. Slide 1: Cover letter to stock exchanges

    ICFL/LS/0222/2021-22 12 February 2022 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 Mumbai - 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 541336 Symbol: INDOSTAR Sub.: Regulatio

  2. Slide 2: IndoStar reports PAT of ₹15 crores during Q3FY22

    Annexure - I IndoStar Capital Finance Limited BSE: 541336 | NSE: INDOSTAR | Bloomberg: INDOSTAR:IN IndoStar reports PAT of ₹ 15 crores during Q3FY22 ● Total Retail disbursements at ₹ 1,456 crores ● Retail AUM ~ ₹ 7,594 Crores - up from ₹ 6,922 Crores from Q2FY22. Retail lending now stands at 82% of

  3. Slide 3: Stable credit rating and robust liquidity pipeline; Key Financials

    Stable credit rating and robust liquidity pipeline: The company currently has liquid assets of around 14% of its borrowings. With a credit rating of AA- with stable outlook, even in the current challenging times, the company has a strong pipeline and multiple avenues to raise further liabilities to

  4. Slide 4: Poised for Growth: Q3FY22 Results Update

    Annexure - II POISED FOR GROWTH Q3FY22 Results Update 11th February 2022

  5. Slide 5: Disclaimer

    This presentation and the accompanying slides (the “Presentation”) have been prepared by IndoStar Capital Finance Limited (“IndoStar” or the “Company”) solely for information purposes and do not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase a

  6. Slide 6: Strategy

    • To build a 100% retail company with Pan India Presence • To build a profitable retail platform with growth potential to deliver excellent value to all stakeholders. • To open smart branches with digitisation to enhance productivity and reduce operating expenses • To expand geography, products and

  7. Slide 7: Discussion Summary

    Discussion Summary — LIFE KA TAKE-OFF Quarterly Results Business Update Strategy Shareholding Structure

  8. Slide 8: Q3 Updates

    • PAT for Q3FY22 ₹ 145 million and 9MFY22 ₹ 171 million • Retail disbursement for Q3FY22 ₹ 14,563 million vs ₹ 4,769 million for Q3FY21 and 11,075 million for Q2FY22 • Collections continue to be stable • Over ₹ 29000+ million collected in last 1 year • Continued reduction in Corporate lending book -

  9. Slide 9: Strong Liquidity & ALM

    Particulars Jan-22 Feb-22 Mar-22 Q1 FY23 Q2 FY23 Q3 FY23 Opening cash & equivalents* 9,345 11,349 14,338 16,138 12,004 8,632 Loan repayment inflows [Principal] 862 880 937 2,525 3,433 4,136 Fresh borrowings # 2,250 5,000 5,000 - - - Total inflow 12,457 17,230 20,275 18,663 15,437 12,768 Liability re

  10. Slide 10: Diversified funding profile

    Funding Mix - Sep 2021 Funding Mix - Dec 2021 NCD 19% NCD 22% Equity 39% Equity 39% Banks 31% Banks 31% CP 1% Others 0% CP 2% Securitisation 7% Securitisation 8% Incremental Funding Mobilized Strong Credit Ratings ₹ mn Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Borrowing Type Rating Firm Ratings Banks 1,500 2,

  11. Slide 11: Steady reduction in the Corporate book

    Corporate Lending AUM (₹ mn) 43,804 37,202 31,909 29,296 29,897 25,521 23,766 19,325 18,828 16,306 16,225 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 AUM is gross of ECL provision Steady reduction in the Corporate book 7

  12. Slide 12: Retail collections performance update

    Retail Month Billing Total Collections % (₹ mn) (₹ mn) Apr-20 2,130 154 7 May-20 2,134 389 18 Jun-20 2,219 1,023 46 Jul-20 2,234 1,450 65 Aug-20 2,211 1,565 71 Sep-20 2,182 2,008 92 Oct-20 2,153 2,148 100 Nov-20 2,092 2,382 114 Dec-20 2,050 2,810 137 Jan-21 1,985 1,867 94 Feb-21 2,011 2,191 109 Mar-

  13. Slide 13: Expanding Reach

    343 branches across 21 states * Some branches have multiple operating segments 343 278 240 215 217 218 318 265 202 208 227 207 64 65 69 82 87 10 48 10 10 10 11 11 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 SME Finance Housing Finance CV Finance Employee Base 2,635 2,007 1,944 1,941 2,044 2,240 Sep-20

  14. Slide 14: Q3FY22 Performance: Key Highlights

     Strong Retail Franchise ~ 82% of AUM (v/s 75% Execution of Retailisation in Dec-20) Theme  ICICI partnership AUM ~ ₹ 4,264 mn  Comfortable liquidity; ~14% of Borrowings Strong Capitalisation &  CRAR 35% Liquidity  Debt : Equity ratio of 1.5x  Net Revenue from Operations ₹ 1,638 mn Financials

  15. Slide 15: Q3FY22 & 9MFY22: Consolidated Profit & Loss Statement

    Particulars (₹ mn) Q3 FY22 Q2 FY22 QoQ % Q3FY21 YoY % 9M FY22 9M FY21 YoY % Revenue from operations 2,881 2,800 3% 3,353 (14%) 8,333 10,079 (17%) Interest expenses (1,243) (1,352) (8%) (1,785) (30%) (3,982) (5,477) (27%) Net revenue from operations 1,638 1,448 13% 1,568 4% 4,352 4,602 (5%) People co

  16. Slide 16: Consolidated Balance Sheet

    Particulars (₹ mn) Dec-21 Sep-21 QoQ % Dec-20 YoY % Equity 36,784 36,779 - 40,046 (8%) Borrowings 56,784 57,329 (1%) 71,236 (20%) Other liabilities 3,551 4,040 (12%) 3,086 15% Total liabilities 97,120 98,149 (1%) 1,14,368 (15%) Loan assets 78,700 71,670 10% 75,515 4% Treasury assets 11,267 18,307 (3

  17. Slide 17: Q3 FY22: Business Segment Performance

    CV SME Housing Corporate ^ Particulars (₹ mn) Consolidated Finance Finance Finance Lending Revenue from operations 1,424 439 326 490 2,881 Interest expenses (471) (215) (148) (232) (1,243) Net interest income 953 223 178 258 1,638 People costs 285 44 70 13 600 Operating expenses 197 16 34 16 416 Pre

  18. Slide 18: 9M FY22: Business Segment Performance

    CV SME Housing Corporate ^ Particulars (₹ mn) Consolidated Finance Finance Finance Lending Revenue from operations 3,722 1,355 911 1,870 8,333 Interest expenses (1,317) (654) (437) (798) (3,982) Net interest income 2,405 701 474 1,072 4,352 People costs 712 128 181 42 1,623 Operating expenses 682 42

  19. Slide 19: Q3 FY22: Quarterly Performance Trend (1/4)

    AUM (₹ mn) Margin Analysis (%) 93,390 89,900 92,360 84,334 85,723 13,130 12,582 9,052 11,050 9,499 80,260 77,318 73,284 76,224 83,308 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 On-book Loans Off-book Loans AUM AUM is gross of ECL provisions NIM is Net Interest Income divided by Interest earning assets Q3 FY

  20. Slide 20: Q3 FY22: Quarterly Performance Trend (2/4)

    Loan Disbursements (₹ mn) Cost to Income Ratio (%) 14,798 11,292 60.5% 58.2% 58.7% 59.0% 8,635 47.2% 6,611 6,276 14,563 11,075 4,769 8,495 6,271 1,842 140 5 217 235 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1 FY22 Q2 FY22 Q3 FY22 Corporate Retail Total Excluding one-offs costs Q3 FY22: Quart

  21. Slide 21: Q3 FY22: Quarterly Performance Trend (3/4)

    Stage 3 (%) Net worth (₹ mn) 40,046 Gross Stage 3 Net Stage 3 36,983 36,291 36,779 36,784 4.4% 4.5% 4.7% 4.3% 2.8% 2.1% 2.2% 2.3% 2.3% 1.8% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3 FY22: Quarterly Performance Trend (3/4) 17

  22. Slide 22: Q3 FY22: Quarterly Performance Trend (4/4)

    PAT (₹ mn) Return Ratios^ & Capital Adequacy (%) 35.3% 34.6% 34.6% 34.8% 35.1% 394 242 0.9% -1.5% 1.6% 0.6% 145 2.4% 4.3% -12.0% -4.0% 1.6% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 -3,171 -368 -32.9% CRAR ROAA ROAE ^ Annualized Q3 FY22: Quarterly Performance Trend (4/4)

  23. Slide 23: Asset Quality

    Gross Stage 3 (₹ mn) Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 CV finance 805 2,900 2,613 2,775 2,545 SME finance 261 382 456 533 612 Housing finance 138 159 261 303 287 Corporate lending 1,076 - - - 191 Total 2,280 3,441 3,329 3,611 3,635 Net Stage 3 (₹ mn) Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 CV finance 63

  24. Slide 24: Discussion Summary

    Discussion Summary — LIFE KA TAKE-OFF Quarterly Results Business Update Strategy Shareholding Structure

  25. Slide 25: Retailisation strategy on track

    AUM: CL vs Retail (%) Disbursements: CL vs Retail (%) 93,390 89,900 84,334 85,723 92,429 6,611 8,635 6,276 11,292 14,798 75% 78% 78% 72% 81% 82% 98% 100% 98% 98% 25% 22% 22% 28% 19% 18% 2% 2% 2% Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Total AUM (₹ Mn) CL Retai

  26. Slide 26: Retail business Volume

    Retail AUM (₹ mn) Retail Disbursements (₹ mn) 75,938 69,450 70,401 69,224 65,332 12,210 14,563 9,145 9,963 11,098 10,128 18,722 11,075 18,058 18,494 18,833 18,229 8,495 11,337 6,271 7,825 4,769 5,302 42,247 41,944 45,006 36,975 39,294 2,603 5,199 1,201 1,346 1,615 850 1,316 1,992 467 1,904 1,611 605

  27. Slide 27: CV Finance (1/3)

    CV Finance – Monthly Disbursement Trend (₹ mn) 4,638 3,719 2,980 2,699 2,703 2,310 2,423 1,918 2,043 1,596 1,374 1,396 1,238 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21  CV Finance AUM ₹ 45,006 mn  AUM of ICICI Bank tie-up ₹ 4,264 mn  Stronger demand

  28. Slide 28: CV Finance: Profit and Loss (2/3)

    Particulars (₹ mn) Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Revenue from operations 1,287 1,292 1,178 1,120 1,424 Interest expenses (526) (490) (404) (443) (471) Net interest income 761 802 775 677 953 People costs 184 243 181 245 285 Operating expenses 154 169 276 208 197 Pre-provision operating pro

  29. Slide 29: CV Finance: Key ratios (3/3)

    Branches & Employees Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 1,997 350 1,643 2,000 Revenue from operations* 15.1% 15.1% 16.0% 14.1% 15.6% 300 1,532 1,463 1,443 1,521 250 1,500 Net interest income* 8.3% 8.7% 8.8% 7.3% 8.9% 200 Operating expenses* 4.0% 4.8% 6.2% 5.7% 5.3% 150 265 318 1,000 100 207 207

  30. Slide 30: SME Finance (1/3)

    SME Finance – Monthly Disbursement Trend (₹ mn) 744 685 663 620 621 636 563 552 485 423 374 162 69 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21  SME Finance AUM : ₹ 18,722 mn  Assigned Portfolio : ₹ 3,250 mn SME Finance (1/3) 26

  31. Slide 31: SME Finance: Profit and Loss (2/3)

    Particulars (₹ mn) Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Revenue from operations 432 536 452 465 439 Interest expenses (242) (227) (219) (220) (215) Net interest income 190 309 233 245 223 People costs 47 45 38 46 44 Operating expenses 20 37 13 13 16 Pre-provision operating profit 123 227 182 186

  32. Slide 32: SME Finance: Key ratios (3/3)

    Branches & Employees Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 89 88 87 88 103 105 Revenue from operations* 12.6% 15.3% 13.0% 12.9% 11.5% 10 10 10 10 11 11 Net interest income* 5.6% 7.8% 6.5% 6.7% 5.4% Operating expenses* 1.9% 2.3% 1.4% 1.6% 1.6% Cost / Income 35.2% 26.6% 21.6% 24.1% 26.9% Pre-provisi

  33. Slide 33: Housing Finance (1/3)

    Housing Finance – Monthly Disbursement Trend (₹ mn) 611 534 518 489 486 424 376 387 303 336 186 190 90 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21  Housing Finance AUM : ₹ 12,210 mn  Assigned Portfolio : ₹ 1,305 mn Housing Finance (1/3) 29

  34. Slide 34: Housing Finance: Profit and Loss (2/3)

    Particulars (₹ mn) Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Revenue from operations 600 192 297 288 * 326 Interest expenses (138) (126) (139) (150) (148) Net interest income 462 66 158 138 178 People costs 53 24 49 62 70 Operating expenses 26 38 30 27 34 Pre-provision operating profit 383 4 78 49 74

  35. Slide 35: Housing Finance: Key Ratios (3/3)

    Branches & Employees Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Revenue from operations* 14.9% 9.8% 13.9% 12.8% 12.9% 361 412 303 Net interest income* 7.5% 7.2% 7.2% 7.9% 8.5% 271 275 274 Operating expenses* 4.0% 3.1% 3.7% 3.9% 4.1% 82 87 64 65 69 Cost / Income 50.0% 92.5% 50.5% 64.4% 58.2% 48 Pre-prov

  36. Slide 36: FY22 Restructuring Snapshot

    No. of AUM under % of no. of % of Total no of Total AUM 9MFY22 Restructured Restructure Restructured Restructured Accounts accounts accounts AUM (INR mn) (INR mn) VF 73,527 4,091 45,006 3,041 5.6% 6.8% SME 2,647 246 18,722 2,262 9.3% 12.1% AHF 17,504 84 12,210 68 0.5% 0.6% Total Retail 93,678 4,421

  37. Slide 37: Corporate Lending (1/3)

    Corporate Lending AUM (₹ mn) AUM Breakup: RE vs. Non-RE 43,804 10% 10% 12% 12% 37,202 18% 31,909 29,296 29,897 25,521 23,766 19,325 18,828 90% 90% 88% 88% 82% 16,306 16,225 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Real Estate Non

  38. Slide 38: Corporate Lending: Profit and Loss (2/3)

    Particulars (₹ mn) Q3 FY 21 Q4 FY 21 Q1 FY22 Q2 FY22 Q3 FY22 Revenue from operations 834 577 587 793 490 Interest expenses (414) (350) (298) (268) (232) Net interest income 420 227 289 525 258 People costs 17 18 40 (11) 13 Operating expenses 9 32 20 41 16 Pre-provision operating profit 394 177 228 4

  39. Slide 39: Corporate Lending: Key ratios (3/3)

    Q3 FY 21 Q4 FY 21 Q1 FY22 Q2 FY22 Q3 FY22 Revenue from operations* 13.5% 10.0% 12.3% 18.2% 12.0% Net interest income* 6.8% 3.9% 6.0% 7.0% 6.3% Operating expenses* 0.4% 0.9% 1.3% 0.7% 0.7% Cost / Income 6.2% 21.8% 20.9% 5.7% 11.0% Pre-provision operating profit 6.4% 3.1% 4.8% 11.4% 5.6% Credit costs

  40. Slide 40: Discussion Summary

    Discussion Summary —! LIFE KA TAKE-OFF Quarterly Results Business Update Strategy Shareholding Structure

  41. Slide 41: Strategy

    1. Strengthened Balance Sheet • Brought Brookfield as partner with ₹ 12,250 million primary capital and strengthened Capital adequacy and Liquidity • Created additional provisions to overcome Covid impact 2. Reduced Corporate Lending Exposure • On track to become 100% retail company in the next 4-6

  42. Slide 42: Strong & Distinguished Board

     14 committees composed of independent and non-independent directors and also employees1  Distinct and delineated responsibilities to ensure good corporate governance  Strong capital sponsorship also providing access to best industry practices and international corporate governance standards Chai

  43. Slide 43: Discussion Summary

    Discussion Summary — LIFE KA TAKE-OFF Quarterly Results Business Update Strategy Shareholding Structure

  44. Slide 44: Shareholding Pattern

    Shareholding as on 31 December 2021 Public 10.79% Brookfield 56.20% Indostar Capital Mauritius 33.01%^ ^ including Everstone Capital Partners II LLC & ECP III FVCI Pte Ltd ESOP is 4.68% of diluted shares capital Source – NSE, Company data Shareholding Pattern 40

  45. Slide 45: Investor Relations and Media Contacts

    Salil Bawa Media Contact Head Investor Relations Snigdha Nair | AdFactors PR Contact No: +91 9987644008 Email sbawa@ indostarcapital.com Email: snigda.nair@adfactorspr.com Email - investor.relations@indostarcapital.com Email: indostar@adfactorspr.com Salil Bawa Media Contact Head Investor Relations

IndoStar Capital Finance — Q3 FY2022 Earnings Presentation on 6ix