Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — Q1 FY2020-21 Earnings Presentation
52 slides from Sammaan Capital's earnings presentation, Aug 21, 2020
Slide 1: Unaudited Financial Results – Q1 FY2020-21
Unaudited Financial Results – Q1 FY2020-21 August 21, 2020
Slide 2: Contents
Contents Pg. No. 1. Business Update 03 2. Funding Growth: FY21 04 3. Performance Metrics 05 4. Granular Asset Liability Maturity Management 06 5. Liquidity Framework 07 6. Asset Quality & Provision Levels 08 7. Retail Business Model 09 8. Developer Loan Business Model 10 9. Appendix 11 2
Slide 3: Business Update
Business Update Key Financial Highlights: Q1FY20-21 vs Q4FY19-20 [IndAS] Q1 FY20-21 Q4 FY19-20 Loan Book 73,129 73,065 Net Interest Income 731 828 PAT 273 137 • Phase of reduction in loan book and AUM is over • Loan book will start growing from here on as per the Company’s business plan that blends
Slide 4: Funding Growth: FY21
Funding Growth: FY21 FY21 Long-term Borrowings 21,000 Retail Loan Sell Down 2,000 Developer loan refinance/ securitization 5,000 Total FY21 28,000 Debt Repayment [including pre-payment] 16,000 Growth Capital [for own balance sheet] 12,000 Amount in ₹ Cr • The Company plans to grow its balance sheet
Slide 5: Performance Metrics
Performance Metrics Particulars Q1 FY20-21 Loan Book ₹ 73,129 Cr Net Debt to Equity 3.9x CRAR 27.9% Yield on Loans 11.3% Cost of Borrowings 8.7% Book Spread 2.6% Cost to Income Ratio 14.0% Gross NPA 2.2% RoA [FY20] 1.9% RoE [FY20] 17.6% 5
Slide 6: Granular Asset Liability Maturity Management
Granular Asset Liability Maturity Management 92,488 92,488 83,367 80,496 76,343 71,666 65,029 60,512 54,159 49,276 25,220 13,840 15,302 12,225 12,525 13,190 12,388 7,186 3,671 - 888 1,059 1d-14d 15d-1m 1m-2m 2m-3m 3m-6m 6m-1yr 1yr-3Yr 3Yr-5Yr 5Yr-7yr 7Yr-10yr 10Yr+ Assets Liabilities The ALM above i
Slide 7: Asset Quality & Provision Levels
Asset Quality & Provision Levels Q1 FY21 Q1 FY20 Gross Stage 3 2,042 1,662 % Portfolio in Stage 3 2.20% 1.47% ECL Provision Stage 3 525 416 Net Stage 3 1,517 1,246 Gross Stage 1&2 90,728 1,11,527 % Portfolio in Stage 1&2 97.80% 98.53% As per IND AS Amounts in ₹ Cr • Had the Company not chosen to de-
Slide 8: Retail Business Model [60% HL, 40% LAP]
Retail Business Model [60% HL, 40% LAP] Proportion of Origination 40% 40% 20% 100% On-Balance Sheet Retention 8% 4% 20% 32% Co-origination Sell Down Total On-Balance Sheet Onward Lending [20% on IBH Books] [10% on IBH Books] RoA HL LAP HL LAP HL LAP HL LAP Yield 9.10% 11.50% 8.10% 11.10% 8.50% 11.50
Slide 9: Developer Loan Business Model: Co-origination with Credit Funds
Developer Loan Business Model: Co-origination with Credit Funds On Fund’s Balance Sheet 80% On IBH Balance Sheet 20% Yield 15.0% • Pari passu risk sharing Cost of Funds for IBH 8.1% • Loan processing fee to IBH Spread for IBH 6.9% • Annual loan servicing fee to IBH Processing Fees [1.0% of Disbursal
Slide 10: Appendix
Indiabulls HOUSING FINANCE Appendix
Slide 11: Financial and Operational Highlights
Financial and Operational Highlights 11
Slide 12: Balance Sheet Assets
Balance Sheet Assets 16% 12% Loan Book Cash & Cash Equivalents Other Assets 72% 12
Slide 13: Asset Composition
Asset Composition Q1 FY 20-21 36% 64% Housing Loans Non-Housing Loans 13
Slide 14: Liabilities Profile
Indiabulls HOUSING FINANCE Liabilities Profile
Slide 15: Liabilities
Liabilities 16% 9% 75% Shareholders' Funds Borrowings Other Liabilities 15
Slide 16: Funding Mix
Funding Mix 4% 4% 4% 11% 22% 24% 32% 35% 34% 15% 1% 39% 38% 38% Jun 18 Jun 19 Jun 20 Non-Convertible Debentures Commercial Papers Bank Loans Sell Down ECB ECB: External Commercial Borrowing 16
Slide 17: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Total Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Cash & Cash Equivalents 11,925 11,925 9,519 10,240 11,072 12,832 8,434 6,133 5,759 Customer Repayments 73,129 1,264 4,237 3,938 3,855 4,013 4,127 4,052 3,865 No
Slide 18: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Cash & Cash Equivalents 2,834 3,595 3,049 4,533 4,883 2,907 4,408 5,949 Customer Repayments 3,632 3,145 3,137 2,967 2,590 2,691 2,313 2,194 Non Current Assets - - - -
Slide 19: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Cash & Cash Equivalents 7,477 8,806 10,313 11,149 11,155 12,197 13,534 15,021 Customer Repayments 2,203 2,163 1,768 1,585 1,559 1,683 1,730 530 Non Current Assets - -
Slide 20: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q2FY27 Q3FY27 Q4FY27 Q1FY28 Q2FY28 Q3FY28 Q4FY28 Q1FY29 Cash & Cash Equivalents 14,360 13,411 13,632 15,523 15,467 13,307 13,352 8,778 Customer Repayments 769 290 1,947 321 305 291 278 265 Non Current Assets - - - - - - -
Slide 21: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q2FY29 Q3FY29 Q4FY29 Q1FY30 Q2FY30 Q3FY30 Q4FY30 Q1FY31 10+ Years Cash & Cash Equivalents 8,834 7,929 7,065 6,493 6,612 6,723 6,830 6,930 7,024 Customer Repayments 254 243 232 222 212 198 190 182 1,686 Non Current Assets -
Slide 22: Regulatory and Market Developments
Regulatory and Market Developments 22
Slide 23: Residential Market: GFC vs COVID-19
Residential Market: GFC vs COVID-19 Global Financial Crisis [GFC] COVID-19 Valuation of residential properties Overheated Realistic Nature of Market Sellers’ market Buyers’ market Home loan rates High Lower High due to sound financial position Ability of banks to lend Low and presence of security as
Slide 24: Regulatory Updates
Regulatory Updates • Emergency Credit Line Guarantee Scheme of ₹ 3 lakh Cr announced for giving government guaranteed collateral free loans to MSMEs • Long Term Repo Operations [LTRO] of ₹ 1 lakh Cr and Targeted Long Term Repo Operations [TLTRO] of ₹ 50,000 Cr announced by RBI to infuse liquidity in
Slide 25: Product Profiles
Indiabulls HOUSING FINANCE Product Profiles 25
Slide 26: Home Loan Profile: Focus on Mid-Income Affordable Housing
Home Loan Profile: Focus on Mid-Income Affordable Housing Average Loan Size ₹ 24 Lakhs Maximum Loan to Value 80% Average Loan to Value 73% [at origination] Average Loan Term 15 years Average Customer Age 38 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing • PMAY
Slide 27: Smart City Home Loan: Technology-led Cost-effective
Smart City Home Loan: Technology-led Cost-effective Delivery through eHomeLoans Platform Minimum Loan Size ₹ 10 Lakhs Average Loan Size ₹ 15 Lakhs Maximum Loan Size ₹ 40 Lakhs Maximum Loan to Value 80% [at origination] Maximum Loan Term 20 years Average Customer Age 39 years Primary Security Mortgag
Slide 28: Loan Against Property Product Profile
Loan Against Property Product Profile Average Loan Size ₹ 73 Lakhs 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 Average Age of Business 7 years Basis of Credit Appraisal
Slide 29: Smart City LAP: Technology-led Cost-effective
Smart City LAP: Technology-led Cost-effective Delivery through eHomeLoans Platform Minimum Loan Size ₹ 10 Lakhs Average Loan Size ₹ 25 Lakhs Maximum Loan Size ₹ 50 Lakhs Maximum Loan to Value 55% [at origination] Average Loan to Value 40% Maximum Loan Term 10 years Average Loan Term 5 years Average
Slide 30: Static Credit Performance Analysis of LAP and HL Pools
Static Credit Performance Analysis of LAP and HL Pools 30
Slide 31: Retail Loan Book of Highest Quality
Retail Loan Book of Highest Quality Portfolio performance of all sold down pools of ₹ 62,963 Cr Initial Pool Details of Initial POS Average Sold Down Pool Loan Pool Number of Disbursement Ticket Size Months on 180+ dpd Principal Principal Amortisation 90+ dpd % Type Pools [₹ Cr] [at disbursement] Bo
Slide 32: Home Loans Pool Performance Factsheet: Experian Credit Bureau
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sr. No Investor Sold Down Disbursement Sold Down MPS Pool Principal Amortisa- 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 1 Bank 4 29-Oct-13
Slide 33: Home Loans Pool Performance Factsheet: Experian Credit Bureau
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sr. No Investor Sold Down Disbursement Sold Down MPS Pool Principal Amortisa- 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 28 Bank 8 28-Mar-1
Slide 34: Home Loans Pool Performance Factsheet: Experian Credit Bureau
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sr. No Investor Sold Down Disbursement Sold Down MPS Pool Principal Amortisa- 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 55 Bank 8 18-May-1
Slide 35: Home Loans Pool Performance Factsheet: Experian Credit Bureau
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sr. No Investor Sold Down Disbursement Sold Down MPS Pool Principal Amortisa- 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 82 Bank 8 31-Jan-1
Slide 36: LAP Pool Performance Factsheet: Experian Credit Bureau
LAP Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sr. No Investor Sold Down Disbursement Sold Down MPS Pool Principal Amortisa- 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 1 Bank 3 31-Dec-13 224.4
Slide 37: LAP Pool Performance Factsheet: Experian Credit Bureau
LAP Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sr. No Investor Sold Down Disbursement Sold Down MPS Pool Principal Amortisa- 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 28 Bank 14 26-Sep-17 1237
Slide 38: LAP Pool Performance Factsheet: Experian Credit Bureau
LAP Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sr. No Investor Sold Down Disbursement Sold Down MPS Pool Principal Amortisa- 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 55 Bank 15 27-Dec-18 462.
Slide 39: Home Loans and LAP Pool Performance Factsheet
Home Loans and LAP Pool Performance Factsheet PTC and PCG Pools HL Pools Initial Pool Details of Initial POS Sold Down Sold Down Disbursement Pool Principal Amortis- 90+ 180+ Sr No Investor Principal MPS CCR MCR QCR Rating from Date [₹ Cr] [₹ Cr] ation# dpd % dpd % [₹ Cr] 1 Bank 2 30-Dec-13 109.6 99
Slide 40: Corporate Social Responsibility
Corporate Social Responsibility 40
Slide 41: Indiabulls Foundation: Corporate Social Responsibility
Indiabulls Foundation: Corporate Social Responsibility Mahatma Awards For Excellence in Corporate Social Responsibility- 2019 Health JanSwasthya Kalyan (JSK)Vahika - Free primary health check ups and first level of screening for COVID-19 symptoms were carried out for Navi Mumbai police by the health
Slide 42: Board of Directors, Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding
Board of Directors, Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding 42
Slide 43: Eminent and Experienced Board of Directors
Eminent and Experienced Board of Directors Board of Directors with pre-eminence and experience in diverse fields • Mr. S.S. Mundra : Non-Executive Chairman • Mr. Sameer Gehlaut : Founder and Non-Executive Director • Mr. Gagan Banga : Vice Chairman, Managing Director and CEO • Mr. A Siddharth : Ex-Pa
Slide 44: Credit Ratings and Auditors
Credit Ratings and Auditors Rating Agency Long Term Credit Rating CRISIL [an S&P Global Company] AA ICRA [a Moody’s Investors Service Company] AA CARE Ratings AA Brickwork Ratings AA+ Auditors Statutory Auditor S R Batliboi & Co. [Indian Member firm of Ernst & Young] Internal Auditor Grant Thornton
Slide 45: Productivity Ratios
Productivity Ratios FY FY FY FY FY FY FY FY FY FY 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 No. of 4,512 4,243 4,072 4,099 4,840 5,453 6,388 8,111 8,676 5,405 Employees Profit per 0.17 0.24 0.31 0.38 0.39 0.43 0.46 0.47 0.47 0.41 employee [₹ Cr] Asset per 3.71 5.85 8.09 10.84 11.82 14.02 16.
Slide 46: Key Financial Metrics
Key Financial Metrics FY FY FY FY FY FY FY FY FY FY 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Pre Tax RoAA 5.5% 4.9% 4.9% 4.8% 4.9% 4.9% 4.6% 4.3% 4.2% 2.2% [%] Post Tax RoAA 4.1% 3.7% 3.8% 3.8% 3.7% 3.7% 3.6% 3.3% 3.0% 1.9% [%] RoE [%] 17% 22% 26% 27% 29% 26% 26% 30% 24% 18% Capital 23.87%
Slide 47: Valuations and Returns
Valuations and Returns Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Market Price per Share 155 207 272 286 558 674 998 1,194 744 228 204* [₹] Dividend per Share [₹] 10 13 20 29 35 36 36 42 40 21 - Dividend Yield [%] 6.5% 6.3% 7.4% 10.2% 6.3% 5.3% 3.6% 3.5% 5.4% 9.2% -
Slide 48: Shareholding Pattern
Shareholding Pattern 2.0% 23.0% 23.4% 12.3% 39.3% Founder Foreign Institutional Shareholding MFs/Banks/IFI Public Indiabulls - Employee Welfare Trust MF: Mutual Funds; IFI: Indian Financial Institutions As on 30th June, 2020 48
Slide 49: Detailed Financials
Indiabulls HOUSING FINANCE Detailed Financials 49
Slide 50: Consolidated Income Statement
Consolidated Income Statement 50
Slide 51: Safe Harbour Statement
Safe Harbour Statement This document contains certain forward-looking statements based on current expectations of Indiabulls Housing Finance Ltd. management (“IBH”). These forward looking statements and any other projections contained herein are predictions and involve known and unknown risks, uncer
Slide 52: Thank you
Indiabulls HOUSING FINANCE Thank you
Indiabulls Housing Finance — Q1 FY2020-21 Earnings Presentation on 6ix