Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — Q4 FY21 Earnings Presentation
51 slides from Sammaan Capital's earnings presentation, May 27, 2021
Slide 1: Investor Presentation
Indiabulls HOUSING FINANCE Investor Presentation
Slide 2: Contents
Contents Pg. No. 1. Business Update 03 2. Business Goals Achieved in FY21 04 3. Strong Foundation for Retail Asset-Light Model: Strong Partnerships, Low Costs & Tech-enabled Distribution 05 4. Stable Asset Quality & High Provision Levels 06 5. Granular Asset Liability Maturity Management: Liquidity-
Slide 3: Business Update
Business Update Key Financial Highlights: Particulars Q4 FY20-21 Q4 FY19-20 Loan Book 66,047 73,065 CRAR 30.7% 27.1% Tier 1 24.0% 20.3% Net Gearing 3.4x 4.0x Net Interest Income 764* 828 PAT 276 137 * After reversal of ‘interest on interest’ on moratorium cases • Q4FY21 PAT registered a growth of 10
Slide 4: Business Goals Achieved In FY21
Business Goals Achieved In FY21 Particulars As at March 31, 2021 CRAR 30.7% Tier I 24.0% Net Debt to Equity 3.4x Cost to Income Ratio [FY21] 12.8% Book Spread 2.7% Gross NPA 2.66% Net NPA 1.59% • ₹ 2,671 Cr of new regulatory equity capital raised in FY21 from QIP and partial sale of stake in OakNort
Slide 5: Strong Foundation for Retail Asset-Light Model
Strong Foundation for Retail Asset-Light Model: Strong Partnerships, Low Costs, Tech-enabled Distribution Strategic Area Progress in FY21 Highest ever sales traction in projects of wholesale borrowers leading to highest ever collections in Wholesale Book escrow accounts of projects Consolidation Q4F
Slide 6: Stable Asset Quality & High Provision Levels
Stable Asset Quality & High Provision Levels Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Gross NPA 2,147 2,113 2,012 2,042 Gross NPA % 2.66% 2.44% 2.21% 2.20% Net NPA 1,285 1,267 1,487 1,517 Net NPA % 1.59% 1.46% 1.63% 1.63% Amounts in ₹ Cr • Total provisions held are ₹ 2,458 Cr [3.7% of loan book], which is 2.
Slide 7: Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet
Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet 85,883 85,883 76,853 73,757 67,510 69,405 66,136 52,213 53,894 43,148 28,018 20,027 16,084 12,705 13,347 14,345 14,501 5,910 2,300 216 229 297 1d-14d 15d-1m 1m-2m 2m-3m 3m-6m 6m-1yr 1yr-3Yr 3Yr-5Yr 5Yr-7yr 7Yr-10yr 10
Slide 8: Scalable Retail-focussed Asset-Light Business Model
Scalable Retail-focussed Asset-Light Business Model • As IBH pursues an asset-light model, and with co-lending partnerships in place, retail disbursal growth will gain momentum in FY22 • Company will continue with its strategy of letting high-ticket Commercial Real Estate [CRE] loans and Business lo
Slide 9: eHome Loans: Indiabulls Integrated Home Loan Technology Platform
: Indiabulls Integrated Home Loan Technology Platform Integrated Home Loan Technology Platform Customers Analytics Social Media Access to Source Developers and DSAs Fee Generation Integration Data Automated Product Real-time access to GST, Bank Shorter working Cross-sell: Insurance, One app for all
Slide 10: For Tier III & IV Locations: Phygital Channel Strategy
For Tier III & IV Locations: Phygital Channel Strategy • Phygital strategy entails co-mingling of ‘physical’ and ‘digital’ models wherein the Company offers fully digital, online loan fulfillment for specific target customer segments which are well versed with technology, while at the same time cont
Slide 11: Effective Oversight: Independent Chairman, Strong Board, Audit Committee
Effective Oversight: Independent Chairman, Strong Board, Audit Committee Board led by ex-RBI Deputy Governor and majority independent directors • Independent, Non-Executive director Mr. S. S. Mundra, Ex-Deputy Governor of the Reserve Bank of India, is the chairman of the Board Audit Committee chaire
Slide 12: Appendix
Indiabulls HOUSING FINANCE Appendix
Slide 13: Financial and Operational Highlights
Financial and Operational Highlights 13
Slide 14: Balance Sheet Assets
Balance Sheet Assets 17% 12% Loan Book Cash & Cash Equivalents Other Assets 71% 14
Slide 15: Asset Composition
Asset Composition 15% 26% 59% Retail Mortgage Loans Commercial Real Estate Loans Business Loans Particulars FY20-21 Yield on Loans 11.2% Cost of Borrowings 8.5% Book Spread 2.7% 15
Slide 16: Liabilities Profile
Indiabulls HOUSING FINANCE Liabilities Profile
Slide 17: Liabilities
Liabilities 17% 9% 74% Shareholders' Funds Borrowings Other Liabilities 17
Slide 18: Funding Mix
Funding Mix 4% 5% 5% 22% 22% 23% 34% 32% 34% 4% 38% 42% 36% Mar-19 Mar-20 Mar-21 Non-Convertible Debentures Commercial Papers Bank Loans Sell Down ECB Over ₹ 34,000 Cr of liquidity, including ₹ 2,671 Cr of regulatory equity capital, was raised in FY21 ECB: External Commercial Borrowing 18
Slide 19: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Total Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Cash & Cash Equivalents and Undrawn Available Sanctions 12,276 12,276 13,784 14,117 12,202 13,517 10,552 11,049 10,064 Customer Repayments 66,047 3,808 3,943 4,
Slide 20: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Cash & Cash Equivalents and Undrawn Available Sanctions 10,839 10,561 8,053 9,010 9,065 10,086 10,857 11,851 Customer Repayments 2,941 2,613 2,713 2,363 2,207 2,185 2
Slide 21: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Q3FY27 Q4FY27 Cash & Cash Equivalents and Undrawn Available Sanctions 12,175 11,700 11,861 12,593 13,616 12,698 11,456 11,603 Customer Repayments 1,676 1,632 1,683 1,838 731 934 46
Slide 22: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY28 Q2FY28 Q3FY28 Q4FY28 Q1FY29 Q2FY29 Q3FY29 Q4FY29 Cash & Cash Equivalents and Undrawn Available Sanctions 13,456 13,562 11,661 11,933 7,621 7,877 7,198 6,573 Customer Repayments 519 530 481 429 408 421 421 395 Non Cu
Slide 23: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY30 Q2FY30 Q3FY30 Q4FY30 Q1FY31 Q2FY31 Q3FY31 Q4FY31 10+ Years Cash & Cash Equivalents and Undrawn Available Sanctions 6,224 6,447 6,662 6,874 7,051 7,193 7,285 7,370 7,448 Customer Repayments 264 254 242 205 167 114 10
Slide 24: Product Profiles
Indiabulls HOUSING FINANCE Product Profiles 24
Slide 25: Home Loan Profile: Focus on Mid-Income Affordable Housing
Home Loan Profile: Focus on Mid-Income Affordable Housing Urban Semi-Urban Home Loans Home Loans Average Loan Size ₹ 35 Lakhs ₹ 25 Lakhs Maximum Loan to Value 80% 80% Average Loan to Value 73% [at origination] 70% [at origination] Average Loan Term 15 years Average Customer Age 38 years Primary Secu
Slide 26: 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 27: Affordability Level Amongst the Best Ever
Affordability Level Amongst the Best Ever • Since 2013, property prices have grown at 1-2% CAGR, significantly below inflation [ 5% CAGR] and wage growth [8% per capita] • Consequently, ‘Affordability’ [ratio of house price to annual salary] is at at its best in the last 25 years • Benign interest
Slide 28: Growth Momentum in Residential Real Estate
Growth Momentum in Residential Real Estate Sales pick-up • Housing sales in top 8 Indian cities recorded an increase of 44% YoY in Q1CY20211 • Sales volumes recovered to 117% of pre-COVID levels [2019 quarterly average] in Q1 CY20211 • Residential sales in 2021 expected to exceed 2019 levels by 10%
Slide 29: Static Credit Performance Analysis of LAP and HL Pools
Static Credit Performance Analysis of LAP and HL Pools 29
Slide 30: Retail Loan Book of Highest Quality
Retail Loan Book of Highest Quality Portfolio performance of all sold down pools of ₹ 65,985 Cr Initial Pool Details of Initial POS Average Sold Down Pool Loan Pool Disbursement Ticket Size Months on Principal Principal Amortisation 90+ dpd % 180+ dpd % Type [₹ Cr] [at disbursement] Book [₹ Cr] [₹ C
Slide 31: 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 Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 1 Bank 4 27-Dec-13
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 Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 28 Bank 11 29-Sep-
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 Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 55 Bank 17 29-Oct-
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 Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 82 Bank 6 31-Mar-1
Slide 35: LAP Pool Performance Factsheet: Experian Credit Bureau
LAP Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 1 Bank 10 7-Feb-14 429.8
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 Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 28 Bank 12 23-Aug-18 217.
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 Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 55 Bank 20 5-Apr-19 112.1
Slide 38: 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 Pool Sold Down Disbursement Amortis- 90+ 180+ Sr No Investor Principal MPS Principal [₹ CCR MCR QCR Rating from Date [₹ Cr] ation# dpd % dpd % [₹ Cr] Cr] 1 Bank 2 30-Dec-13 109.6 99
Slide 39: Corporate Social Responsibility
Corporate Social Responsibility 39
Slide 40: Indiabulls Foundation: Corporate Social Responsibility
Indiabulls Foundation: Corporate Social Responsibility Mahatma Awards For Excellence in Corporate Social Responsibility - 2019 Health JanSwasthya Kalyan (JSK) Vahika- Mobile Medical Vans - Free primary healthcare services provided at doorstep to the underprivileged population of urban slums with 31
Slide 41: Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding
Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding 41
Slide 42: 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 Ernst & Young [through Indian Member Firm S R Batliboi & Co.] Internal Auditor Grant Thor
Slide 43: Productivity Ratios
Productivity Ratios FY FY FY FY FY FY FY FY FY FY FY 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 No. of 4,512 4,243 4,072 4,099 4,840 5,453 6,388 8,111 8,676 5,405 3,480 Employees Profit per 0.17 0.24 0.31 0.38 0.39 0.43 0.46 0.47 0.47 0.41 0.35 employee [₹ Cr] Asset per 3.71 5.85 8.09 10
Slide 44: Key Financial Metrics
Key Financial Metrics FY FY FY FY FY FY FY FY FY FY FY 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Pre Tax RoAA 5.5% 4.9% 4.9% 4.8% 4.9% 4.9% 4.6% 4.3% 4.2% 2.2% 1.6% [%] Post Tax RoAA 4.1% 3.7% 3.8% 3.8% 3.7% 3.7% 3.6% 3.3% 3.0% 1.9% 1.3% [%] RoE [%] 17% 22% 26% 27% 29% 26% 26% 30% 24% 1
Slide 45: 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 Mar-21 Market Price per Share 155 207 272 286 558 674 998 1,194 744 228 193* [₹] Dividend per Share [₹] 10 13 20 29 35 36 36 42 40 21 9 Dividend Yield [%] 6.5% 6.3% 7.4% 10.2% 6.3% 5.3% 3.6% 3.5% 5.4% 9.2% 4
Slide 46: Shareholding Pattern
Shareholding Pattern 3.7% 21.7% 28.2% 12.7% 33.7% Founder Foreign Institutional Shareholding MFs/Banks/IFI Public Pragati Employee Welfare Trust MF: Mutual Funds; IFI: Indian Financial Institutions As on 31st Mar, 2021 46
Slide 47: Detailed Financials
Indiabulls HOUSING FINANCE Detailed Financials 47
Slide 48: Consolidated Balance Sheet
Consolidated Balance Sheet 48
Slide 49: Consolidated Income Statement
Consolidated Income Statement 49
Slide 50: 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 51: Thank you
Indiabulls HOUSING FINANCE Thank you
Indiabulls Housing Finance — Q4 FY21 Earnings Presentation on 6ix