Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — Q2 FY2015 Earnings Presentation
41 slides from Sammaan Capital's earnings presentation, Oct 27, 2014
Slide 1: Indiabulls Housing Finance Limited Unaudited Financial Results Q2 FY 2014-15
Indiabulls Housing Finance Limited (CIN: L65922DL2005PLC136029) Unaudited Financial Results – Q2 FY 2014-15 October 27, 2014
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document contains certain forward-looking statements based on current expectations of Indiabulls management. Actual results may vary significantly from the forward-looking statements in this document due to various risks and uncertainties. These risks and uncertainties in
Slide 3: Contents
Contents Pg. No. 1. Business Update 4 2. Operational Update 7 3. Indian Mortgage Market 12 4. Financial and Operational Highlights 17 5. Key Ratios, Valuations and Shareholding 33 6. Detailed Financials 38 3
Slide 4: Business Update
Indiabulls HOME LOANS Business Update
Slide 5: Our Journey
Our Journey 2013-14 PAT: Rs.1,569 Cr. 2012-13 Loan assets: Rs.41,169 Cr. RoE: 27% Conversion to HFC 2011-12 India’s 3rd largest HFC by size PAT Rs.1,266 Cr., RoE: 26% Balance sheet: Rs. 39,129 Cr. Credit rating upgraded to AA+ 2010 - 11 PAT crosses Rs.1,000 Cr. Balance sheet cros
Slide 6: Business Update: Key Financial Highlights H1 FY 2014-15
Business Update Key Financial Highlights: H1 FY 2014-15 H1 FY 14-15 H1 FY 13-14 Growth (%) Total Revenues (Rs. Cr.) 3,308.5 2,818.1 17.4% NII (Rs. Cr.) 1,438.6 1,243.6 15.7% PAT (Rs. Cr.) 872.1 721.9 20.8% EPS (Rs.) 25.90 22.49 Year-on-Year (Y-o-Y) Comparison – Q2 FY14-15 v/s Q2 FY13-14 Q2 FY 14-15
Slide 7: Operational Update
Indiabulls HOME LOANS Operational Update
Slide 8: Rating Upgrades
Rating Upgrades • Long-term credit rating upgraded to AAA by CARE Ratings and Brickwork Ratings • CRISIL, a Standard and Poor’s company, upgraded long-term credit rating to AA+ in July, 2014 • ICRA, an Associate of Moody‘s Investors Service, upgraded long-term credit rating to AA+ in June, 2014 • On
Slide 9: Strengthening of Board of Directors
Strengthening of Board of Directors Board of Directors with pre-eminence and experience in diverse fields • Mr. Sameer Gehlaut - Chairman of the board • Mr. Gagan Banga - Vice Chairman, MD & CEO • Dr. K.C. Chakrabarty - former Deputy Governor of the Reserve Bank of India • Justice Surinder Singh Nij
Slide 10: Business Summary
Business Summary • Loans Outstanding : Rs. 45,027 Cr (September 30, 2014) : (US$ 7.50 bn) • Loan Book CAGR (6 years) : 26 % • Cumulative Number of Retail Customers Served : 6.17 Lacs • Cumulative Loans Disbursed till date : Rs. 94,831 Cr (US$ 15.81 bn) • Cost to Income Ratio (FY 2014) : 17% • Profit
Slide 11: Country-wide Reach
Country-wide Reach Number of Outlets FY 10 140 FY 11 163 FY 12 180 FY 13 200 FY 14 205 Q2 FY15 214 11
Slide 12: Indian Mortgage Market
Indiabulls HOME LOANS Indian Mortgage Market 12
Slide 13: Indian Mortgage Market: Low Mortgage Penetration
Indian Mortgage Market Headroom for Growth - Low Mortgage Penetration 88% 81% 41% 26% 29% 17% 20% 09% India Thailand China Korea Malaysia Hong Kong USA UK Source: National Housing Bank, 2013 • Lower mortgage penetration compared to advanced and emerging economies implies huge opportunity for growth
Slide 14: Growing HFC Market Share in Expanding Home Loans Market
Indian Mortgage Market Growing HFC Market Share in a Steadily Expanding Home Loans Market 12,000 45% 40% 10,000 37% 40% 35% 8,000 Rs. Billion 32% 35% 6,000 30% 27% 27% 30% 4,000 2,000 25% 3,695 3,990 4,541 5,448 6,249 7,110 10,958 - 20% FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 16E Home Loan Portfolio
Slide 15: Recent Government Policy Initiatives
Recent Government Policy Initiatives • Housing for all by 2022: A major policy goal for the new government - 65 million new housing units - Government focus on making organised housing finance available to all • Affordable Housing: Policy makers’ focus on Home loans up to 50 Lacs (from sub 25 Lacs c
Slide 16: Tax Incentives – Low Effective Interest Rates
Indian Mortgage Market Tax Incentives – Low Effective Interest Rates Particular 2015 2010 2000 Loan Amt (Rs) 2,500,000 2,500,000 2,500,000 Nominal Interest Rate(%) 10.25% 9.25% 13.25% Max deduction for interest allowed 200,000 150,000 75,000 Deduction Principal 150,000 100,000 20,000 Tax Rate applic
Slide 17: Financial and Operational Highlights
Financial and Operational Highlights 17
Slide 18: Balance Sheet Assets
Balance Sheet Assets 6% 14% Loan Book: 80% Cash & Liquid Investments*: 14% Other Assets: 6% 80% Total Assets As at September 30, 2014 Rs. 49,536 Cr. (US$ 8.26 bn) As at September 30, 2013 Rs. 42,975 Cr. (US$ 7.16 bn) * Cash, Cash Equivalents and Investments in Liquid Debt Instruments US $ amounts ar
Slide 19: Loan Book Growth
Loan Book Growth Total Loan Assets (Rs. Cr.) Loans Sold (Rs. Cr.) (in preceding 12 months) 45,027 3,747 38,140 3,093 31,025 2,130 Sep-12 Sep-13 Sep-14 Sep-12 Sep-13 Sep-14 • Loans sold (outstanding as on 30th Sep, 2014): Rs. 5,238 Cr. – on which spread at 3.4% p.a. is to be earned over the life of t
Slide 20: Asset Composition
Asset Composition Q2 FY 13-14 Q2 FY 14-15 21% 21% 6% 3% 73% 76% Mortgage Commercial Vehicle Loans Corporate Mortgage Loans • Driven by the growth of the Home loans book, retail mortgage book growth has outpaced the growth of corporate mortgage book growth • Home loans, which forms the majority of in
Slide 21: Mortgage Loans' Sourcing
Mortgage Loans' Sourcing 79% of Mortgage loans are sourced in-house 16% 5% 9% 70% DST Branch Walk-ins Bank Tie-ups DSA • Increasing DST manpower and improving productivity will push in-house sourcing to over 80% in FY15 21
Slide 22: Conservative Home Loan Profile
Conservative Home Loan Profile Average Loan Size 24 Lacs Maximum Loan to Value 80% Average Loan to Value 70% (at origination) Average Loan Term 13 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing 22
Slide 23: Conservative Loan Against Property Profile
Conservative Loan Against Property Profile Average Loan Size 68 Lacs 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 23
Slide 24: Asset Quality
Asset Quality (as % of Total Loan Assets) 0.85% 0.85% 0.76% 0.51% 0.45% 0.41% 0.44% 0.31% 0.34% Sep-12 Sep-13 Sep-14 Gross NPA General & Specific Provisions Net NPA • NPA’s continue to remain within the target range. With the expected economic recovery, the pressure on NPA’s is expected to ease • St
Slide 25: Liabilities
Liabilities 5% 12% Share Holder’s Funds: Rs. 6,120 Cr. (US$ 1.02 bn) Borrowings: Rs. 41,103 Cr. (US$ 6.85 bn) Other Liabilities: Rs. 2,313 Cr. (US$ 0.39 bn) 83% Total Liabilities: As of September 30, 2014: Rs. 49,536 Cr. (US$ 8.26 bn) As of September 30, 2013: Rs. 42,975 Cr. (US$ 7.16 bn) US $ amoun
Slide 26: Diversified Borrowing Programme
Diversified Borrowing Programme 8% 6% 8% 29% 28% 32% Commercial Paper Bonds 63% 66% 60% Bank Loans Sep-12 Sep-13 Sep-14 Total Borrowings: As of September 30, 2014: Rs. 41,103 Cr. (US$ 6.85 bn) As of September 30, 2013: Rs. 35,012 Cr. (US$ 5.84 bn) US $ amounts are converted based on the exchange rat
Slide 27: Diversified Borrowing Programme
Diversified Borrowing Programme 41,103 7.00 Borrowings (Rs. Cr.) 40,000 35,012 28,006 5.70 30,000 5.14 5.00 4.30 20,000 3.00 10,000 - 1.00 Sep-12 Sep-13 Sep-14 Borrowings Net Gearing Net Gearing: Borrowings Net of ‘Cash & Cash Equivalents’ and ‘Investments in Liquid Debt Instruments’ Contribution in
Slide 28: Optimally Matched Balance Sheet
Optimally Matched Balance Sheet Maturity Profile (As of March 31,2014) 17,922 16,715* 16,259 14,431 10,104 10,725 Up to 1 yr 1 - 5 yrs Over 5 yrs Assets Liabilities (Amounts in Rs. Cr.) • * Assets in the ‘Up to 1 Yr’ bucket includes Rs. 7,341.4 Cr. of Cash, Cash equivalents and investments in liquid
Slide 29: Our Strengths
Our Strengths Corporate Strengths Awards and Accolades • Highest credit rating of AAA ASSOCHAM HFC ISO 9001:2008 • Very strong board of directors of the Year 2013-2014 Certificate • Stable and experienced management team • Headroom to grow: Net gearing: 5.70 • Steady book growth over last 20 quarter
Slide 30: Indiabulls Foundation: Corporate Social Responsibility
Indiabulls Foundation: Corporate Social Responsibility Indiabulls Foundation provided timely relief Kashmir Flood to 10,000 flood affected people in Kashmir. Relief Supporting the redevelopment of Kashmir valley with J&K flood relief fund Indiabulls Foundation Free Medical Clinic in Worli, Mum
Slide 31: Indiabulls Foundation: Corporate Social Responsibility
Indiabulls Foundation: Corporate Social Responsibility Street lights arrangement in Wagholi & Gulvanch village, Maharashtra Built household rainwater harvesting structures and storage tanks in 385 rural households Rural across 10 villages in Nagaur district, Rajasthan empowerment Approved 3 bo
Slide 32: Indiabulls Foundation: Corporate Social Responsibility
Indiabulls Foundation: Corporate Social Responsibility Started Indiabulls Foundation Scholarship Program to deserving students to pursue their higher education after 12th standard Indiabulls Foundation has sponsored MSCIT courses to 125 students in Amravati and 150 Education students in Sinnar,
Slide 33: Key Ratios, Valuations and Shareholding
Key Ratios, Valuations and Shareholding 33
Slide 34: Rising Productivity Ratios
Rising Productivity Ratios FY 2014 FY 2013 FY 2012 No. Of Employees 4,099 4,072 4,243 No. Of Outlets 205 200 181 Profit Per employee (Rs. Cr.) 0.38 0.31 0.24 Asset Per employee (Rs. Cr.) 10.84 8.09 5.85 Cost Income Ratio 17.1% 18.0% 18.7% 34
Slide 35: Key Financial Metrics
Key Financial Metrics FY 2014 FY 2013 FY 2012 Pre Tax ROAA (%) 4.8% 4.9% 4.9% Post Tax ROAA (%) 3.8% 3.8% 3.7% ROE (%) 27% 26% 22% Capital Adequacy (%) 19.14% 18.47% 18.86% - Of which Tier I 15.05% 14.96% 18.21% - Tier II 4.09% 3.51% 0.65% 35
Slide 36: Valuations and Returns
Valuations and Returns Sep-14 Mar-14 Mar-13 Mar-12 Market Price per share (Rs.) 402.7 285.6 271.8 207.1 Market Capitalisation (US$ Bn) 2.38 1.59 1.42 1.08 Book value per Share (Rs.) 170.3 168.7 165.4 157.7 PE Ratio (times) 7.8 6.0 6.8 6.5 Price to Book Ratio (times) 2.4 1.7 1.6 1.3 Dividend per shar
Slide 37: Shareholding Pattern
Shareholding Pattern 26.84% 27.85% 3.53% MF: Mutual Funds IFI: Indian Financial Institutions 41.78% Promoters Foreign Shareholding MFs/Banks/IFI Public 37
Slide 38: Detailed Financials
Indiabulls HOME LOANS Detailed Financials 38
Slide 39: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. 7,141 Cr. of Cash & Cash Equivalents and Investments in Liquid Debt Instruments 39
Slide 40: Consolidated Income Statement
Consolidated Income Statement 40
Slide 41: Thank you
Indiabulls HOME LOANS Thank you
Indiabulls Housing Finance — Q2 FY2015 Earnings Presentation on 6ix