Indostar Capital Finance Limited · NSE:INDOSTAR
Indostar Capital Finance — Q4 FY19 Earnings Presentation
41 slides from Indostar Capital Finance's earnings presentation, May 20, 2019
Slide 1: Regulation 30 filing cover letter
INDOSTAR ICFL/LS/0042/2019-20 20 May 2019 BSE Limited National Stock Exchange of India Limited Listing Department, 1‘t Floor, Exchange Plaza, C—1, Block G P] Towers, Dalal Streets, Fort Bandra Kurla Complex Mumbai ~400 001 Bandra (E), Mumbai—400 051 Scrip Code: 541336 Symbol: INDOSTAR Sub.: Regulati
Slide 2: IndoStar posts PAT of Rs. 74 Cr in Q4 FY19, up 83% YoY
IndoStar Capital Finance Limited BSE: 541336 | NSE: INDOSTAR | Bloomberg: INDOSTAR:IN For Media Queries: Debashree Chatterjee | Concept PR Debashree.chatterjee@conceptpr.com | + 91 98332 75977 For Immediate Release IndoStar posts PAT of Rs. 74 Cr in Q4 FY19, up 83% YoY The company has recommended fi
Slide 3: About IndoStar Capital Finance Limited
IndoStar Capital Finance Limited BSE: 541336 | NSE: INDOSTAR | Bloomberg: INDOSTAR:IN For Media Queries: Debashree Chatterjee | Concept PR Debashree.chatterjee@conceptpr.com | + 91 98332 75977 Please note: All financial numbers are reported under Indian Accounting Standards (Ind AS). About IndoStar
Slide 4: Q4 & FY19 Results Update
INDOSTAR CAPITAL FINANCE LIMITED Q4 & FY19 Results Update 20 May 2019
Slide 5: Disclaimer
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
Slide 6: Q4 & FY19 performance: Key Highlights
Q4 & FY19 performance : Key Highlights ▪ Retail AUM: ₹ 72,082 Mn [+343% YoY, +121% QoQ] Retailisation : 2020-21 Target ▪ Retail assets 61% of total AUM Already Achieved ▪ Distribution footprint doubles to 322 branches across 18 states ▪ VF & HF turn profitable in Q4 ;SME business already profitable;
Slide 7: Retail Strategy Acceleration - Acquisition of IIFL Vehicle Finance Business
Retail Strategy Acceleration - Acquisition of IIFL Vehicle Finance Business ✓Profit accretive from day 1 ✓5x increase in Vehicle Finance AUM to ₹ 48 Bn ✓Increases Vehicle Finance origination capacity to ₹ 4 Bn per month ✓National footprint with 322 branches across 18 states ✓Experienced manpower inc
Slide 8: National Footprint
National Footprint 322 branches across 18 states 322 * Some branches have multiple operating segments 155 159 129 305 91 39 136 142 114 10 75 11 46 55 55 10 5 10 15 10 31 10 40 10 10 10 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 SME Finance Housing Finance Vehicle Finance Retail Lending - Empl
Slide 9: Q4 & FY19: Consolidated Profit & Loss Statement
Q4 & FY19: Consolidated Profit & Loss Statement Particulars (₹ Mn) Q4 FY19 Q3 FY19 QoQ % Q4 FY18 YOY % FY19 FY18 YoY % Revenue from Operations 3,411 3,212 6% 2,149 59% 12,210 7,910 54% Interest Expenses (1,639) (1,474) 11% (968) 69% (5,636) (3,255) 73% Net Revenue from Operations 1,772 1,737 2% 1,18
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (₹ Mn) Mar-19 Dec-18 QoQ % Mar-18 YoY % Equity 30,063 29,282 3% 20,747 45% Borrowings 89,357 62,223 44% 48,228 85% Others 706 384 84% 1,451 -51% Total Liabilities 120,126 91,889 31% 70,425 71% Loan Assets 102,222 76,508 34% 60,595 69% Treasury Assets 14,201 14,
Slide 11: Q4 FY19: Business Segment Performance
Q4 FY19: Business Segment Performance Corporate SME Vehicle Housing ^ Particulars (₹ Mn) Consolidated Lending Lending Finance Finance Revenue from Operations 1,817 585 542 189 3,411 Interest Expenses (790) (309) (204) (84) (1,639) Net Interest Income 1,028 276 338 105 1,772 People Costs 108 38 149 2
Slide 12: FY19: Business Segment Performance
FY19: Business Segment Performance Corporate SME Vehicle Housing ^ Particulars (₹ Mn) Consolidated Lending Lending Finance Finance Revenue from Operations 7,578 2,156 1,225 438 12,210 Interest Expenses (3,137) (1,126) (470) (204) (5,636) Net Interest Income 4,441 1,029 755 234 6,574 People Costs 242
Slide 13: Diversified Funding Profile
Diversified Funding Profile Funding Mix - December 2018 Funding Mix - March 2019 ICD 1% Equity Equity Others CP 25% 32% 17% 6% CP 2% Banks 31% Banks NCD NCD 27% 29% 30% Proportion of Commercial Paper remains low Borrowing Type Rating Firm Ratings Term Loans INDIA RATINGS / CARE AA (–) Strong Credit
Slide 14: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (₹ Mn) Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Opening Cash & Cash Equivalents * 18,839 14,277 4,420 1,652 267 3,700 6,881 13,099 Acquisition Funding tied up 4,200 Loan Repayment Inflows (Principal) 4,485 5,375 7,679 6,382 5,962 5,362 8,544
Slide 15: Strong Performance Track Record
Strong Performance Track Record AUM (₹ Mn) Disbursements (₹ Mn) 64,474 117,352 53,884 49,034 40,976 62,073 33,245 52,359 42,651 34,292 # FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 # Includes acquired CV business AUM of ₹ 35,143 mn PAT (₹ Mn) Return Ratios & Capital Adequacy Post acquisition o
Slide 16: Q4 FY19: Encouraging Quarterly Performance Trend (1/2)
Q4 FY19: Encouraging Quarterly Performance Trend (1/2) Consolidated Financials AUM (₹ Mn) Loan Disbursements (₹ Mn) On-book Loans Off-book Loans AUM 21,830 22,606 20,280 117,352 14,694 13,048 74,701 77,665 77,482 15,130 60,595 8,540 50,435 975 102,222 60,595 74,701 77,665 76,508 50,435 Q3 FY18 Q4 FY
Slide 17: Q4 FY19: Encouraging Quarterly Performance Trend (2/2)
Q4 FY19: Encouraging Quarterly Performance Trend (2/2) Consolidated Financials NPA (%)* PAT (₹ Mn) * GNPA & NNPA represents Stage 3 Assets 2.6% 739 713 640 1.7% 1.3% 1.2% 0.9% 0.9% 394 405 1.7% 315 1.4% 1.1% 1.0% 0.6% 0.6% Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY
Slide 18: Corporate Lending: Disbursements pick up in Q4 (1/3)
Corporate Lending : Disbursements pick up in Q4 (1/3) Gross Disbursements (₹ Mn) Corporate Lending AUM (₹ Mn) 52,519 48,665 16,106 15,351 44,327 44,803 45,270 38,533 11,299 11,605 4,127 2,856 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 AUM Breakup:
Slide 19: Corporate Lending: Continuing Strong Profitability (2/3)
Corporate Lending : Continuing Strong Profitability (2/3) Particulars (₹ Mn) Q3 FY 18 Q4 FY 18 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Revenue from Operations 1,461 1,577 1,614 2,206 1,940 1,817 Interest Expenses (522) (627) (722) (836) (789) (790) Net Interest Income 939 950 892 1,370 1,151 1,028 Peopl
Slide 20: Corporate Lending: Key ratios (3/3)
Corporate Lending : Key ratios (3/3) * Q3 FY 18 Q4 FY 18 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Revenue from Operations * 15.5% 14.7% 13.4% 16.7% 15.7% 15.6% ✓ Consistent high profitability Net Interest Income * 9.9% 8.9% 7.4% 10.4% 9.3% 8.8% Operating Expenses * 0.7% 0.5% 0.4% 0.5% 0.2% 0.9% ✓ Strong
Slide 21: Retailisation Strategy Continues with Strong Momentum
Retailisation Strategy Continues with Strong Momentum Growing Proportion of Retail Lending in AUM and Disbursements AUM: CL vs Retail (%) Disbursements: CL vs Retail (%) 50,435 60,595 74,701 77,665 77,482 1,17,352 14,694 21,830 22,606 13,048 8,540 20,280 xxx 24% 27% 23% 26% 30% 32% 37% 42% 43% 61% 6
Slide 22: Retail expansion on track: VF Disbursements pick up smartly in Q4
Retail expansion on track : VF Disbursements pick up smartly in Q4 Retail AUM (₹ Mn) Retail Disbursements (₹ Mn) Significant growth in Retail AUM with IIFL acquisition 8,921 8,675 72,083 1,681 1,308 7,170 5,478 1,300 1,530 18,849 5,636 5,690 374 3,566 1,049 3,072 32,680 3,395 1,093 29,000 4,241 144
Slide 23: Vehicle Finance: Continued strong growth in Q4 (1/3)
Vehicle Finance : Continued strong growth in Q4 (1/3) Vehicle Finance – Monthly Disbursement Trend (₹ Mn) 2,807 1,728 1,520 1,510 1,186 1,183 1,305 1,026 1,099 989 758 825 April-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 ✓ Commenced VF business in December 2017 ✓
Slide 24: Vehicle Finance: Achieves Profitability in Q4FY19 (2/3)
Vehicle Finance : Achieves Profitability in Q4FY19 (2/3) Particulars (₹ Mn) Q3 FY 18 Q4 FY 18 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Revenue from Operations 0 25 103 234 346 542 Interest Expenses (1) (9) (38) (89) (139) (204) Net Interest Income -0 16 65 145 207 338 People Costs 32 77 95 119 97 149 Ope
Slide 25: Vehicle Finance: Key ratios (3/3)
Vehicle Finance : Key ratios (3/3) Q3 FY 18 Q4 FY 18 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Branches & Employees Revenue from Operations * n.a. 16.8% 16.1% 17.5% 17.1% 18.7% Net Interest Income * n.a. 10.5% 10.2% 10.8% 10.3% 11.6% Operating Expenses * n.a. 84.7% 31.7% 16.9% 10.6% 9.1% 350 3,000 305 300
Slide 26: SME Business: Calibrated volume growth in Q4 (1/3)
SME Business : Calibrated volume growth in Q4 (1/3) SME Finance – Monthly Disbursement Trend (₹ Mn) 1,516 1,468 1,257 1,332 1,244 1,202 1,177 1,124 921 746 499 530 560 440 344 250 Dec-17 Jan-18 Feb-18 Mar-18 April-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 ✓ SME
Slide 27: SME Business is Profitable (2/3)
SME Business is Profitable (2/3) Particulars (₹ Mn) Q3 FY 18 Q4 FY 18 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Revenue from Operations 311 346 432 544 594 585 Interest Expenses (150) (193) (230) (284) (303) (309) Net Interest Income 161 152 203 260 292 276 People Costs 57 39 53 56 40 38 Operating Expense
Slide 28: SME Business: Key ratios (3/3)
SME Business : Key ratios (3/3) Q3 FY 18 Q4 FY 18 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Branches & Employees Revenue from Operations * 11.8% 10.8% 11.4% 12.5% 13.0% 13.3% Net Interest Income* 6.1% 4.8% 5.3% 6.0% 6.4% 6.3% 77 76 86 84 Operating Expenses* 3.0% 1.9% 1.9% 1.8% 1.3% 1.4% 64 65 Cost / Incom
Slide 29: Housing Finance Business: Steady disbursements in Q4 (1/3)
Housing Finance Business : Steady disbursements in Q4 (1/3) Housing Finance – Monthly Disbursement Trend (₹ Mn) 570 601 564 510 415 430 440 438 398 338 363 271 April-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 ✓Consistent growth in AUM and disbursements ✓First ass
Slide 30: Housing Finance Business: Achieves Profitability in Q4FY19 (2/3)
Housing Finance Business : Achieves Profitability in Q4FY19 (2/3) Particulars (₹ Mn) Q3 FY 18 Q4 FY 18 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Revenue from Operations 1 9 36 80 133 189 Interest Expenses (1) (4) (16) (41) (63) (84) Net Interest Income 1 5 20 38 70 105 People Costs 27 47 62 93 81 28 Opera
Slide 31: Housing Finance: Key ratios (3/3)
Housing Finance : Key ratios (3/3) Q3 FY 18 Q4 FY 18 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Branches & Employees Revenue from Operations * 18.8% 15.0% 14.4% 13.2% 14.3% 15.8% Net Interest Income * 8.9% 8.4% 8.1% 6.4% 7.6% 8.8% 418 Operating Expenses * 406.7% 100.8% 30.1% 20.4% 11.3% 4.7% 341 391 370 35
Slide 32: Our Strategic Priority: Build A Well-Balanced & Diversified Lending Institution
Our Strategic Priority: Build A Well-Balanced & Diversified Lending Institution Dream Drive Deliver To build a profitable, Become the “Go-To” NBFC Quality, Profitability & Growth diversified asset book for Middle India ✓ Continue to grow profitable corporate ✓ Be a catalyst in our customers’ ✓ Achie
Slide 33: Quick Snapshot
Quick Snapshot 1. First Indian NBFC 6. Robust Risk Management & promoted by Global PE Investors Scalable Technology Platform • Incorporated in 2011, sponsored by Everstone • Strong credit underwriting processes Capital and other marque investors • Active Board oversight • Listed on NSE & BSE in May-
Slide 34: Retail Lending: Focus on High Growth Segments
Retail Lending: Focus on High Growth Segments Commenced Retail Lending in 2016 with Focus on High Growth Segments Vehicle Finance to be the primary growth engine, while Housing Finance and SME Finance to offer strategic leverage SME Finance Housing Finance Vehicle Finance • Commenced in FY 2016 • Co
Slide 35: Entrepreneurial Leadership Team with Strong Sponsor Backing
Entrepreneurial Leadership Team with Strong Sponsor Backing ✓ Several years of experience and in-depth understanding of the specific industry and geographic regions ✓ Separate business & credit heads for each vertical ✓ Strong alignment through large ESOP program (8.5% of diluted shares) ◼ 20+ years
Slide 36: Entrepreneurial Leadership Team with Strong Sponsor Backing
Entrepreneurial Leadership Team with Strong Sponsor Backing ◼ 24 years of experience with ◼ 20 years of experience financial Institutions with banks & financial ◼ 21 years of experience with banks Institutions & financial Institutions ◼ Previously worked with Fullerton India, Citigroup, ◼ Previously
Slide 37: Strong & Distinguished Board
Strong & Distinguished Board ✓ 13 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 corpor
Slide 38: Robust Risk Management Framework
Robust Risk Management Framework Organizational Framework Aligned Strong Credit / Underwriting Processes Followed by to Mitigate Risk Robust Monitoring Mechanism Business National Credit National Ops 1 Structured Credit Appraisal / Approvals Head Manager Head • Corporate: Pre-screened by corporate l
Slide 39: Promoters Shareholding Structure
Promoters Shareholding Structure Everstone1 48.00 % 57.01% Indostar Capital3 100.0% (Promoter) IndoStar Capital Finance Limited 52.00 % Promoter Group4 Other Investors2 3.27% Strong capital sponsorship of Everstone Group 6 ‘Private Equity Firm of the Year in India’ India and SEA US$5.0bn focused AuM
Slide 40: Shareholding Pattern
Shareholding Pattern Shareholding @ 31 March 2019 Major Shareholders Promoter & Promoter Group Foreign Management Team and Employees* Company Body Trusts SBI MF 2.5% Corporates 1.8% 4.9% Lenarco (Advent) Others ICICI Prudential Life Insurance 8.6% Fidelity Emerging Markets Fund HDFC MF SBI Amundi Fu
Slide 41: For Further Queries
For Further Queries Pankaj Thapar Nilesh Dalvi CFO IR Consultant Contact No: +91 22 4315 7036 Contact No: + 91 9819289131 Email – pthapar@indostarcapital.com Email – nilesh.dalvi@dickensonir.com Rajagopal Ramanathan IRO Contact No: +91 22 4315 7068 Email - rramanathan@indostarcapital.com
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