India Shelter Finance Corp. Ltd. · NSE:INDIASHLTR
India Shelter Finance — Q3 FY25 Earnings Presentation
45 slides from India Shelter Finance's earnings presentation, Feb 6, 2025
Slide 1: Cover letter to stock exchanges
February 06, 2025 To, To, BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Exchange Plaza, C-1, Block G, Bandra Kurla Mumbai- 400001 Complex, Bandra (E), Scrip Code: 544044 Mumbai – 400051 NSE Symbol: INDIASHLTR Sub: Investor Presentation under Regulati
Slide 2: Investor Presentation Q3 & 9MFY25
Investor Presentation Q3 & 9MFY25 India Shelter Finance Corporation Limited
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (“Presentation”), which have been prepared by India Shelter Finance Corporation Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: 9MFY25 Snapshot
9MFY25 Snapshot AUM Employees Spread Gross Stage 3 ROA Rs. Crore 7,619 36% YoY 3,786 6.1% 1.2% 5.5% Disbursement States Secured Book Net Stage 3 ROE Rs. Crore 2,422 28% YoY 15 100% 0.9% 14.7% PAT Branches Average Ticket Size2 PCR3 CRAR | Leverage Rs. Crore Rs. Lakhs 270 59% YoY 265 +5 Branches QoQ 1
Slide 5: Key Highlights & Executive Summary – Q3FY25
Key Highlights & Executive Summary – Q3FY25 • Delivered AUM growth of 36% YoY to Rs. 7,619 Cr Business • Portfolio LTV maintained at 52%, ATS continues to be at Rs. 10 Lacs Metrics & AUM ROA Expansion • The company continues to deepen its presence by adding 5 new branches in Q3FY25 • Geographic pres
Slide 6: About the Company
About the Company India Shelter Finance Corporation Limited 5
Slide 7: Who we are
Who we are What we do Deep Vintage India Shelter provides affordable home Founded in 2010, India Shelter has a 15-year loans and loan against property in Tier 2 and 3 geographies in India for last 15 years vintage that results in deep understanding of the segment Focus on Underserved Focus Segment P
Slide 8: Growth Journey
Growth Journey AUM (Rs. Crores) 36% CAGR (FY19-Q3FY25) AUM crosses Crossed Rs. 6,000 Crs 260+ Branches IND RA: Upgraded to AA- (Stable) AUM crosses Rs. 7,600 crs PAT crosses Listed on CARE: Rs. 100 crs Upgraded to BSE, NSE 7,619 A+ (Positive) ICRA: Acquires Upgraded majority 6,084 to A- Presence in
Slide 9: Key Success Factors
Key Success Factors Curated In-house Processes Enabling Robust Asset Quality across Cycles 4 5 Extensive, Diversified, Phygital 3 Professional Management Guided by Distribution having Pan India presence Board Comprising of Industry Veterans Technology Driven Company with Scalable Model 2 6 Strong Fo
Slide 10: Experienced Board with Industry Veterans
Experienced Board with Industry Veterans Chairman Independent Directors Parveen Gupta Rachna Dikshit Savita Mahajan Thomson Thomas Ex-MD SBI Ex-Regional Ex-CIO HDFC Life Ex-Dean ISB Director RBI Nominee Directors Management Sudhin Choksey Ex-MD Gruh Finance 35+ yrs of BFSI experience Nominee Directo
Slide 11: Professionally Managed Company
Professionally Managed Company Experienced Management Team with Strong Alignment of Interest with 9% ESOP Pool Rupinder Singh Ashish Gupta Sharad Pareek Nilay MD & CEO CFO CRO CHRO 21+ yrs of experience 19+ yrs of experience 23+ yrs of experience 23+ yrs of experience Ex-Cholamandalam Ex-Satin Micro
Slide 12: Shareholding Pattern
Shareholding Pattern Key Institutional Investors Investor % Holding 2.0% WestBridge WestBridge Capital^ 46.6% 6.2% Nexus Venture Partners^ 15.3% 6.8% DII SBI Life 4.2% Axis Mutual Fund* 2.5% Nexus Madison^ 2.5% 15.3% Quant Mutual Fund* 2.2% 46.5% Publics & others Goldman Sachs India Equity# 2.0% Nip
Slide 13: Business Update
Business Update India Shelter Finance Corporation Limited 12
Slide 14: Industry Dynamics
Industry Dynamics Housing Credit Income Profile Avg. Ticket Size Value of Units LTV Aggregate Loan Segment Shortage Penetration (Rs. Lakh) (Rs. mn) (Rs. tn) (%) Demand (Rs. tn) (mn units) (%) EWS Up to 3 45 0.75 34 40% 40% 5 LIG 3 to 6 50 2.0 100 50% 80% 40 MIG & Above 6 and above 5 8.0 40 65% 85% 2
Slide 15: Robust Growth With Profitability
Robust Growth With Profitability Disbursement (Rs. Crores) AUM (Rs. Crores) 36% PAT (Rs. Crores) 29% YoY YoY 8% 54% 6% QoQ YoY QoQ 7,619 7% 879 QoQ 828 7,039 96 90 679 5,609 62 53 54 38 Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 Co-lending 14
Slide 16: Asset Quality Metrics
Asset Quality Metrics Stage 3/ GNPA (%) DPD above 90 DPD upto 90 Net Stage 3/ NNPA (%) 1.2% 1.1% 1.2% 1.2% 1.0% 0.05% 0.01% 0.02% 0.04% 0.02% 0.9% 0.9% 0.9% 0.9% 0.7% 1.1% 0.9% 1.1% 1.2% 1.2% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 30+ DPD (%) Collection Efficiency (%)
Slide 17: Maintaining Spreads
Maintaining Spreads Yield COF Spread 14.8% 14.9% 14.9% 8.8% 8.8% 8.8% • Cost of Funds (COF) maintained at 8.8% as of December’24 • Marginal Cost of Funds for 9MFY25 is at 8.9% 6.0% 6.1% 6.1% Dec'23 Sept'24 Dec'24 16 Yield on AUM | Yield and COF is position as at the end of relevant period and is exc
Slide 18: Extensive Pan-India Distribution Network
Extensive Pan-India Distribution Network Geographically Diversified with Contiguous Scope for Operating Leverage Expansion (Vintage-wise AUM/ branch, December-24) No of AUM AUM /Branch AUM /Branch Branch Vintage Branches (Rs. Crs) Q3FY25 FY21 Up to 1 year 52 324 6 1 1 to 3 years 86 1,803 21 14 More
Slide 19: Customer & Portfolio Demographics
Customer & Portfolio Demographics >20 to 25L >25L ≤5L Salaried Tier - 1 7% 4% 8% December 2024 Loan against Property 26% 9% 42% >15 to 20L Tier - 3 AUM Profile 55% 13% ATS1 Home City Mix Mix Tier Rs. 10 Loans Lacs 58% Tier - 2 >5 to 10L Self Employed 36% 41% >10 to 15L 74% 27% >20 to 25L >25L ≤5L Lo
Slide 20: Tech, Credit & Risk
Tech, Credit & Risk India Shelter Finance Corporation Limited 19
Slide 21: Robust Underwriting and Risk Management
Robust Underwriting and Risk Management In-house BRE for analyzing 100+ fields for customer and collateral evaluation Customer Assessment Collateral Evaluation Controls in Place ✓ Background and Business Collateral Valuation Risk Management Vintage Process ✓ Neighbor & Reference Check ✓ Identificati
Slide 22: End to End Digital Process for Home Loans
End to End Digital Process for Home Loans Minimizing our carbon footprint through digitization IndiaShelter IndiaShelter IndiaShelter IndiaShelter IndiaShelter iSales iCredit iTech iCollect iServe Customer Credit Collateral Collections Customer Acquisition Underwriting Evaluation Management Service
Slide 23: Technology Driven with Scalable Operating Model
Technology Driven with Scalable Operating Model Strong Tech Architecture across Processes Multiple Digital Assets Digital Loan Approval Cloud Based Platform and Paperless Approach Extensive database with 100+ data points on customer and collateral Customer 360 view Data Capture profiles to enable ro
Slide 24: Digital Adoption Progress
Digital Adoption Progress % of Customers registered % of Service Requests on the app raised on the app 72% 71% 76% 78% 97% E-Nach Mandates 28% 38% Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 % of Digital Collections % of Account Aggregator (AA) penetration 96% 96% 43% 38% 98% E-Signing 93% 21% Q3FY24
Slide 25: Separate Hierarchy Of Key Functions
Separate Hierarchy Of Key Functions Sales, Underwriting & Collections Independent of each function Customer Ops & Cust. Collection & Credit Legal Technical Acquisition Service Recovery Loan Officers Credit Manager Branch Service Tech. Manager Collection Manager Branch Manager Branch Manager Area Sal
Slide 26: Financials
Financials India Shelter Finance Corporation Limited 25
Slide 27: Strong Liability Franchise
Strong Liability Franchise Diversified Funding Profile and Strong Lending Relationships Lender Base 7 years Borrowing Mix (Q3FY25), % Avg. Tenure of Borrowings 33 Lender Relationships ECB 4% NCD Key Lenders PTC 1% FI & Others MF, NBFC, 7% Excluding undrawn sanction of Rs. 450 Cr from NHB NHB Term 13
Slide 28: Strong Balance Sheet
Strong Balance Sheet Consistent Rating Upgrades Strong ALM Surplus Outflow Inflow Cumulative ALM Profile, December’24 Rs. Crs 2024 AA- (Stable) 354 304 <3 months 658 2023 A+ (Positive) 621 311 <6 months 932 2022 A+ (Stable) 1,143 326 <1 Year 1,468 2019 A (Stable) 2,839 136 <3 Year 2,975 2018 A- (Pos
Slide 29: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (₹ Cr) As on Dec-24 Total Available Cash & Cash Equivalents1 5991 Liquidity of Un-availed Sanctions from Banks/FI 1,153 INR 1,752 Cr Total Liquidity Position 1,752 Particulars (Rs. Cr.) Q3FY25 Q1FY26 Q2FY26 Q3FY26 Opening Liquidity 1,752 1,784 1,815 1,807 A
Slide 30: Profit & Loss Statement - Quarterly
Profit & Loss Statement - Quarterly Particulars (Rs. Cr.) Q3FY25 Q3FY24 YoY Q2FY25 QoQ Interest Income on loans 233.9 169.3 38% 216.0 8% Net Gain on Direct Assignments 27.2 19.9 - 27.1 - Other Income 43.3 29.2 - 40.3 - Total Income 304.4 218.4 39% 283.4 7% Finance Cost 91.7 73.6 24% 84.2 9% Net Tota
Slide 31: Profit & Loss Statement – Nine Months
Profit & Loss Statement – Nine Months Particulars (Rs. Cr.) 9MFY25 9MFY24 YoY Interest Income on loans 650.5 470.3 38% Net Gain on Direct Assignments 79.3 62.2 - Other Income 118.7 84.5 - Total Income 848.5 617.0 38% Finance Cost 252.2 212.7 19% Net Total Income 596.3 404.2 48% Operating Expenses 22
Slide 32: Profit & Loss Statement – Annual
Profit & Loss Statement – Annual Particulars (Rs. Cr.) FY24 FY23 FY22 FY21 FY20 Interest Income on loans 660.6 476.7 353.2 257.7 202.6 Net Gain on Direct Assignments 79.1 43.9 49.7 29.2 - Other Income 121.7 85.7 56.9 35.9 27.3 Total Income 861.4 606.2 459.8 322.8 229.9 Finance Cost 287.0 208.7 147.4
Slide 33: Balance Sheet
Balance Sheet Particulars (Rs. Cr.) Dec-24 Dec-23 March-24 Sources of Funds Share Capital 53.9 53.5 53.5 Reserves & Surplus 2,540.8 2,155.3 2,245.1 Borrowings 4,549.8 3,512.7 3,415.1 Other liabilities & provisions 122.8 86.7 80.4 Total 7,267.3 5,808.3 5,794.2 Application of Funds Loan Assets 6,350.3
Slide 34: ECL Provisions Summary
ECL Provisions Summary Particulars Dec-24 Sept-24 March-24 Dec-23 Gross Stage 3 81.1 74.7 50.1 57.0 % Portfolio in Stage 3 1.2% 1.2% 1.0% 1.2% ECL Provision Stage 3 20.2 18.5 12.5 14.9 Net Stage 3 60.9 56.2 37.7 42.1 % Portfolio in Stage 3 0.8% 0.8% 0.6% 0.8% Provision Coverage Ratio (PCR) – Stage 3
Slide 35: ROE Tree & Key Ratios
ROE Tree & Key Ratios Particulars (Rs. Crs) Q3FY25 Q3FY24 Q2FY25 9MFY25 9MFY24 FY24 Total Revenue to Average Total Assets 17.6% 16.5% 17.8% 17.3% 16.3% 17.1% Finance cost to Average Total Assets 5.3% 5.6% 5.3% 5.1% 5.6% 5.7% Net Income to Average Total Assets 12.3% 11.0% 12.5% 12.2% 10.7% 11.4% Oper
Slide 36: Financial Snapshot – 10 years
Financial Snapshot – 10 years Particulars FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Operational Branches 31 33 47 61 64 81 86 115 130 183 223 States 4 5 7 8 8 12 12 15 15 15 15 Active Live Accounts 5,304 8,552 12,823 15,730 20,117 24,354 27,602 33,607 43,328 58,552 80,791 Employees 255
Slide 37: Key Growth Strategies
Key Growth Strategies Grow and Diversify Diversify Borrowings Leverage Technology Enhance Brand Distribution and Optimize for Scalability and Equity and Foster Network Borrowing Costs Productivity Sustainability Deepening branch Enhance credit rating Enhance lead sourcing Increase concentration pene
Slide 38: ESG
ESG India Shelter Finance Corporation Limited 37
Slide 39: Focus on Social Capital
Focus on Social Capital Social SDGs achieved Customers SDGs achieved India Shelter Nakshatra: Serving the underserved & unserved Our Educational Initiative segment leading to financial inclusion: Akshaya Patra Foundation (to ensure a nutritious meal for the underprivileged students) 73% 91% Samartha
Slide 40: Focus on Human Capital
Focus on Human Capital Employees Employee Development & Well Being We prioritize the development & well-being of our employees, ensuring a healthy and balanced work environment. Here are some initiatives we have implemented: • Prarambh - A Leadership Journey • India Shelter Child Scholarship Program
Slide 41: Strong Governance Structure
Strong Governance Structure Strong corporate governance framework in place for effective risk management Board of Directors Board Level Committees Willful Risk Nomination & Stakeholders Audit IT Strategy Defaulter Management Remuneration CSR committee Relationship Committee Committee Review Committe
Slide 42: Awards & Accolades
Awards & Accolades BEST CUSTOMER EXPERIENCE JAN GRIHA CERTIFICATION INDIA'S BEST SOLUTION OF THE YEAR TOP 50 INDIA'S BEST GREAT PLACE TO WORK WORKPLACES IN NBFC BY ON AT THE BW WORKPLACES IN BFSI 2024 CERTIFIED GPTW INDIA FINTECH AWARDS 2024 GREEN HOME INITIATIVES 41
Slide 43: Glossary
Glossary Terms Explanation AUM represents the aggregate of future principal outstanding and overdue principal outstanding, if any, for all loan assets under management which includes (i) loan assets held by us as of the last day of the relevant period/year (ii) loan assets which have been transferre
Slide 44: Glossary
Glossary Abbreviation Expansion Abbreviation Expansion ALM Asset liability management HL Home loan ATS Average Ticket Size IPO Initial Public Offer AUM Assets under management LAP Loan against property BPS Basis Points LCR Liquidity Coverage Ratio BRE Business rule engine LIG Low-income group CAGR C
Slide 45: Thank You
Thank You For further information, please contact: Rahul Rajagopalan Head – Investor Relations investorrelations@indiashelter.in
India Shelter Finance — Q3 FY25 Earnings Presentation on 6ix