Can Fin Homes Ltd. · NSE:CANFINHOME
Can Fin Homes — Q1 FY2025 Earnings Presentation
36 slides from Can Fin Homes's earnings presentation, Jul 20, 2024
Slide 1: Submission of Investor Presentation - Post Q1 FY25 Results
CAN FIN HOMES LIMITED Registered Office No. 29/1, 1st Floor, Sir M N Krishna Rao Road Near Lalbagh West Gate, Basavanagudi Bengaluru – 560 004 Tel: 080-48536192; Fax: 26565746 e-mail: compsec@canfinhomes.com Web: www.canfinhomes.com CIN – L85110KA1987PLC008699 CFHRO SE CS LODR 173/2024 July 20, 2024
Slide 2: Investor Presentation Q1FY25
Investor Presentation Q1FY25 36 years of vision, passion and progress Offering home loans since 1987….. and it is just a beginning July 2024
Slide 3: Legacy Focus Reach
Legacy Focus Reach • 36 year old • To promote home • Headquartered institution registered ownership across in Bengaluru as a deposit taking India, with a motto HFC with NHB of friendship • Pan-India presence finance and good with 186 branches, • Promoted by Canara service 21 Affordable Bank in the y
Slide 4: Milestones since 1987
ET Edge 2015 Promising 2021 Brand Award to Can Fin Homes Ltd. 1989 11 more branches Rights issue of CFHL are added, including – mCap over New Delhi 1991 Loan book crossed Rs. 1000 Cr Rs. 100 Cr Successful completion of 35 Years Loan book over 2016 100th branch at Begur, Rs. 10000 Cr 2019 2022 1987 F
Slide 5: Company will continue its thrust on growth, asset quality, profitability and liquidity
• Company will continue its thrust on growth, asset quality, • Company intends to evolve further • Expansion of sourcing channels to profitability and liquidity. with the help of technology, duly attract different segments of • Unwavering focus on good keeping abreast with the changes in borrowers,
Slide 6: Consistent support from the sponsor - Canara Bank
II • Consistent support from the sponsor - Canara Bank. • Expertise gained over 36 years in housing 1989 finance. • Eminent personalities with rich experience on the Board. • Quick, hassle free and customer friendly lending process. • Transparent and timely updation to stakeholders. 2019 • Risk base
Slide 7: Credit ratings by borrowing type
Position as on 30/06/2024 Borrowings CARE ICRA IND Ra Term Loans (Long Term Loan) AAA/Stable AAA/Stable Term Loans (Short Term Loan) A1+ NHB Borrowings AAA/Stable Commercial Papers (CPs) A1+ A1+ Non-Convertible Debentures (NCDs) AAA/Stable AAA/Stable AA+/Stable Public Deposits AAA/Stable www.canfinh
Slide 8: Board of Directors
Chairman (Promoter) Managing Director & CEO Director (Promoter) Director (Independent) Director (Independent) Director (Independent) Director (Independent) Director (Independent Deputy Managing Director Deputy Managing Director (Upto 29/04/2024) (w.e.f 29/04/2024) www.canfinhomes.com 7
Slide 9: Senior Management
Chief Financial Officer General Manager Company Secretary Total Exp: 14 Years Total Exp: 30 Years Total Exp: 20 Years Service in Can Fin - 1 Year Service in Can Fin – 30 Years Service in Can Fin – 09 months Chief Compliance Officer Chief Information Officer Chief Risk Officer Total Exp: 34 Years Tot
Slide 10: Loan process: lead generation, due diligence, sanction, disbursement
Lead Generation Through Website, Customer Referral, Direct marketing and DSA channel. Due Diligence CKYC-UIDAI linked verification; Bank account verification through PERFIOS; Field verification of residence, employment, property in each proposal; Online PAN verification; Online ITR verification; CER
Slide 11: Documentation, collection, monitoring
Documentation Pre-filled System Generated documents - ready for Execution. Storage of Loan Centralised Document Storage. Dockets Collection Through E -NACH, Salary deduction. Option for online Payment. Monitoring Data mining for EWS Monthly OTMS reports Cluster Risk Monitoring Reconciliation At bran
Slide 12: Our digital focus areas
Our digital focus areas: Providing Creating a digital Automation and Building robust personalized and financial services digitization of and secure digital seamless services to bouquet in processes to capabilities across our customers across collaboration with make things platforms to the country so
Slide 13: Q1 FY25 highlights
1. Loan Book reached Rs. 35557 Cr (+9% 7. Gross NPA 0.91% & Net NPA 0.49%. YoY) with a clientele base of 2.62 lakh. 8. The Salaried and Professional 2. NII: Rs. 320 Cr, PBT: Rs. 255 Cr and segment constitutes 72% of the PAT: Rs. 200 Cr. outstanding loan book as on 3. NIM: 3.57 %, RoAA:2.17% Mar 24.
Slide 14: Year on Year and Sequential
* Amt in Crore Sl. Year on Year and Sequential Particulars No. Jun’24 (3m) Jun’23 (3m) Mar’24 (3m) 1 New Approvals 1969 2071 2586 2 Disbursements 1853 1966 2314 3 Outstanding Loan Book 35557 32505 34999 4 Net Interest Income 320 285 328 5 Operating Profit 280 248 272 6 ECL Provision 24 14 2 7 Profit
Slide 15: Period ended key ratios
* Amt in Crore Sl. PERIOD ENDED Particulars No. Jun’24 Jun’23 Mar’24 1 Return on Avg Assets (%) 2.17% 2.19% 2.54% 2 Return on Avg Equity (%) 17.57% 19.16% 19.25% 3 Earning Per Share (Rs.) 14.99 13.78 15.70 4 Net Interest Margin (%) 3.57% 3.48% 3.96% 5 Yield on Loan Portfolio (%) 10.12% 9.84% 10.07%
Slide 16: Year on Year (As per IND AS)
* Amt in Crore Sl. Year on Year (As per IND AS) Particulars No. Jun’24 (3m) Jun’23 (3m) Growth% 1 New Approvals 1969 2071 -5% 2 Disbursements 1853 1966 -6% 3 Outstanding Loan Book 35557 32505 9% 4 Net Interest Income 320 285 12% 5 Operating Profit 280 248 13% 6 ECL Provision 24 14 7 Profit Before Ta
Slide 17: AUM by borrower profile
AUM Q1FY 24 AUM Q1FY 25 1% 1% 14% 14% 27% 27% 3% 3% 55% 55% Sal - Govt Sal - Private Sal - PSU/Banks SENP Prof Sal - Govt Sal - Private Sal - PSU/Banks SENP Prof www.canfinhomes.com 16
Slide 18: AUM by product
AUM Q1FY24 AUM Q1FY25 2% 4% 2% 5% 5% 5% 9% 10% 79% 78% Housing Housing CRE Lap and Mort Top UP Others Housing Housing CRE Lap and Mort Top UP Others www.canfinhomes.com 17
Slide 19: AUM by loan purpose
AUM Q1FY24 AUM Q1FY25 13% 14% 7% 7% 2% 2% 4% 4% 9% 64% 8% 64% Construction Flat Resale Rennov Mort+LAP+Top UP Others Construction Flat Resale Rennov Mort+LAP+Top UP Others *Others include Site loan, Loan against rent receivables, Loans for commercial property, Loans for children education, Personal
Slide 20: Disbursement and AUM by ticket size
Disbursement in Q1 AUM 37% 36% 34% 32% 29% 28% 28% 26% 27% 25% 25% 22% 13% 13% 13% 12% 0 - 10L 10 - 20L 20 - 30L >30L 0 - 10L 10 - 20L 20 - 30L >30L FY24 FY25 Jun-23 Jun-24 www.canfinhomes.com 19
Slide 21: Quarterly growth trend
14% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 -6% -9% -11% -22% www.canfinhomes.com 20
Slide 22: NHB refinance and CLSS subsidy
No. of Accounts Sanction Amount Amt in Crore 13148 1844 1901 10737 Total NHB 1366 Refinance of Rs. 3783 Crore 7043 under AHF in last 6 years 4885 688 722 4098 281 51 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 During the last 6 years, 4
Slide 23: DSA sourcing
Amt in Crore FY23 FY24 Q1FY25 Active DSA's 1463 1184 1310 Total Disbursement 8947 8117 1853 (Crores) Total DSA Sourced Amount(Crores) 7302 6669 1479 % share of total business 82% 82% 80% Share of Top 20 DSA's Amount(Crores) 1011 844 247 % share of total business 11% 10% 13% Diversified Sourcing no c
Slide 24: Share of AUM sourced by DSA
87% 86% 85% 82% 80% 80% 80% 80% 78% Q1 FY 23 Q2 FY 23 Q3 FY 23 Q4 FY 23 Q1 FY 24 Q2 FY 24 Q3 FY 24 Q4 FY 24 Q1 FY 25 *72% of AUM sourced by DSA www.canfinhomes.com 23
Slide 25: Loan portfolio and branches by region
Branches Loan Portfolio 60% 71% 72% 16% 14% 14% 13% 11% 11% 4% 5% 2% 2% 2% 1% Central East North South West Central East North South West Q1FY 24 Q1FY 25 www.canfinhomes.com 24
Slide 26: Loan book movement: disbursement and run off
* Amt in Crore Opening Disbursement Amortization+ Closing Balance Run Off Balance(A) (B) Prepayment (D=A+B-C) E= C/A (C) Mar-21 21026 2002 902 22126 4.29% Q1 FY 22 22126 894 799 22221 3.61% Q2 FY 22 22221 2208 845 23584 3.89% Q3 FY 22 23584 2472 965 25091 4.18% Q4 FY 22 25091 2730 1110 26711 4.50% Q
Slide 27: Category-wise product-wise distribution of loan book
CATEGORY-WISE PRODUCT-WISE DISTRIBUTION OF LOAN BOOK * Amt in Crore Sl. Jun - 23 Sep - 23 Dec - 23 Mar - 24 Jun - 24 Particulars No. 0/s Amt 0/s Amt 0/s Amt 0/s Amt 0/s Amt 1 Salaried & Professionals i) Housing Loans 21602 22067 22442 22971 23245 ii) Top-up Personal Loans 990 1020 1040 1076 1092 iii
Slide 28: Funding mix
Funding Mix @ Jun 2023 (as %) Funding Mix @ Jun 2024 (as %) Deposits Deposits CP 1% CP 1% 7% 7% NCD 16% NCD 20% Banks Banks 54% 56% NHB NHB 22% 16% Total Borrowings – Rs. 29912 Crore Total Borrowings – Rs. 32428 Crore www.canfinhomes.com 27
Slide 29: Yield, cost of borrowing, spread and NIM trends
3.69% 9.87% 9.84% 9.93% 10.01% 10.12% 3.73% 3.48% 3.62% 3.37% 3.57% 10.07% 2.66% 7.35% 7.40% 2.60% 2.67% 7.58% 2.54% 7.51% 7.32% 7.32% 2.52% 2.36% Q4 FY 22-23 Q1 FY 23-24 Q2 FY 23-24 Q3 FY 23-24 Q4 FY 23-24 Q1 FY 23-24 Q4 FY 22-23 Q1 FY 23-24 Q2 FY 23-24 Q3 FY 23-24 Q4 FY 23-24 Q1 FY 24-25 www.canfi
Slide 30: NPA trend: restructured accounts
* Amt in Crore 106 NPA Amount NPA% 96 93 Quarter Without Only Without Only 64 Restructur Restructur Restructur Restructur 20 ed accts ed ed accts ed Q1FY24 186 20 0.57% 0.06% Q2FY24 190 64 0.57% 0.19% 219 Q3FY24 213 96 0.62% 0.28% 213 186 190 193 Q4FY24 193 93 0.55% 0.26% Q1FY25 219 106 0.61% 0.29%
Slide 31: Asset classification and ECL stages
* Amt in Crore Provision as Balance as on Provision as Asset Classification ECL Stages per ECL 30 Jun 2024 per IRAC Model Standard Asset 1 31883 SMA 0 1 1560 137.20 172.49 SMA 1 2 916 SMA 2 2 873 NPA 3 325 148.90 151.48 Total Portfolio 35557 286.10 323.97 Undisbursed Loan Commitment 1393 4.47 Manage
Slide 32: Gross NPA and Net NPA, provision held
Gross NPA & Net NPA (%) Provision held * Amt in Crore 0.91 0.91 34 0.82 34 0.76 34 0.63 34 17 0.49 0.49 151 0.43 0.42 141 139 0.34 112 96 Q1 FY 23-24 Q2 FY 23-24 Q3 FY 23-24 Q4 FY 23-24 Q1 FY 24-25 Q1 FY 23- 24 Q2 FY 23- 24 Q3 FY 23- 24 Q4 FY 23- 24 Q1 FY 24- 25 Provision for NPA Management Overlay
Slide 33: Provision coverage of Gross NPA
* Amt in Crore Q1FY24 As % of Q1FY25 As % of GNPA GNPA Gross NPA 205 325 A. ECL Provision (Stage 3) 95.56 47% 151.47 47% B. Management Overlay 17.00 34.28 Total Provision available 112.56 55% 185.76 57% (A+B) C. Prov for Restructured 67.69 52.31 Pool Total Provision available 180.25 88% 238.07 73% (
Slide 34: Shareholding by category
SI No. Category shareholding as % 4.22 9.48 29.99 1 Promoter 29.99 11.53 2 Mutual Funds 25.76 3 Individual 19.01 4 Foreign Corporate Bodies 11.53 19.01 5 Bodies Corporate 9.48 25.76 6 Others 4.22 7 Grand Total 100.00 Promoter Mutual Funds Individual Foreign Corporate Bodies Bodies Corporate Others w
Slide 35: Branch offices
(219 BRANCH OFFICES) • Odisha – Bhubaneshwar (2), • Punjab – Jalandhar Berhampur, Jharsuguda, • Telangana – Hyderabad (13 Cuttack branches), Siddipet, Warangal, • Chandigarh Karimnagar, Khammam, • Bihar – Patna, Darbhanga Mancherial, Nizamabad • Rajasthan – Alwar, Jaipur, Mansarovar, Kota, Udaipur,
Slide 36: www.canfinhomes.com
The forward looking statements and projections, if any, contained in this presentation are predictions and involve known and unknown risks, uncertainties and other factors including the future changes or developments, the competitive environment, ability to implement the strategies and initiatives,