Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — Investor Presentation (November 2021)
54 slides from Sammaan Capital's investor presentation, Nov 18, 2021
Slide 1: Investor Presentation
Indiabulls HOUSING FINANCE Investor Presentation
Slide 2: Contents
Contents Pg. No. 1. Business Update 03 2. Performance Metrics 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-led Fortress
Slide 3: Business Update
Business Update Key Financial Highlights: Particulars Q2 FY21-22 Q1 FY21-22 Q4 FY20-21 Loan Book 64,062 65,438 66,047 CRAR 31.2% 30.9% 30.7% Tier 1 24.9% 24.3% 24.0% Net Gearing 3.0x 3.1x 3.4x PBT 390 369 357 PAT 286 282 276 • Strong balance sheet with strong capital adequacy, high liquidity and rob
Slide 4: Performance Metrics
Performance Metrics Particulars As at Sept 30, 2021 CRAR 31.2% Tier I 24.9% Net Debt to Equity 3.0x Cost to Income Ratio [FY21] 12.8% Book Spread 2.5% Gross NPA 2.69% Net NPA 1.53% • Stable Net NPA at 1.53%. Provision at 4.0x of regulatory requirements. Provisions to loan book at a very healthy 4.9%
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 Q2FY22 Wholesale Book Strong sales traction in projects of wholesale borrowers. Company firmly on track to reduce Consolidation wholesale book by 33% by Mar 22 Will ad
Slide 6: Stable Asset Quality & High Provision Levels
Stable Asset Quality & High Provision Levels Q2 FY22 Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Gross NPA 2,074 2,268 2,147 2,113 2,012 Gross NPA % 2.69% 2.86% 2.66% 2.44% 2.21% Net NPA 1,179 1,227 1,285 1,267 1,487 Net NPA % 1.53% 1.55% 1.59% 1.46% 1.63% Stage 3 Provisions/ Gross NPA 43% 46% 40% 40% 26% Total
Slide 7: Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet
Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet 77,819 77,819 72,186 68,277 60,293 61,475 59,188 46,576 49,007 37,243 24,862 17,572 13,609 15,386 10,034 10,641 11,694 8,528 5,754 1,487 1,534 1,838 1d-14d 15d-1m 1m-2m 2m-3m 3m-6m 6m-1yr 1yr-3Yr 3Yr-5Yr 5Yr-7yr 7Yr-1
Slide 8: Access to Funding
Access to Funding In H1FY22, IBH has raised the following monies: Amount Term Loans of over 5 years’ tenure ₹ 2,800 Cr Loans of 1 to 3 years’ tenure ₹ 4,399 Cr Bonds of over 3 years’ tenure ₹ 157 Cr Bonds of 1 to 3 years’ tenure ₹ 635 Cr Loan Sell Downs/ Structured Refinance ₹ 2,678 Cr Equity/ Quasi
Slide 9: OakNorth Bank Investment: Annualised IRR of 48% in Six Years
OakNorth Bank Investment: Annualised IRR of 48% in Six Years Amount in ₹ Cr Annualised Period Event Amount IRR Nov 2015 Acquired 39.76% stake in OakNorth Bank 663 Dec 2017 Sold one-third stake to GIC – sovereign wealth fund of Singapore 768 Sep-20 to Oct-21 Sold stake to multiple funds 2,281 Total V
Slide 10: Scalable Retail-focussed Asset-Light Business Model
Scalable Retail-focussed Asset-Light Business Model • With co-lending partnerships in place, retail disbursal growth has gained momentum in FY22 • The Company disbursed retail loans of ₹ 325 Cr through co-lending in the month of Sep-21. This will scale up to ₹ 500 Cr of monthly disbursals by Dec-21
Slide 11: 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 12: 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 13: Environmental, Social and Governance [ESG]
Environmental, Social and Governance [ESG] • The COVID-19 pandemic upended our way of life and the many things we took for granted • It also gave us pause to think about Company’s impact on the environment and the communities we operate in • Environmental, Social & Governance [ESG] framework and rat
Slide 14: ESG Targets
ESG Targets Environmental Social Governance o Company will be carbon neutral by FY32 o Employee welfare and experience o Focus on Governance practices meeting • Gender diversity: 30% to be women managerial the highest ethical standards, o Leverage on technology staff by FY27 and 40% by FY32^ transpa
Slide 15: 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 16: Appendix
Indiabulls HOUSING FINANCE Appendix
Slide 17: Financial and Operational Highlights
Financial and Operational Highlights 17
Slide 18: Balance Sheet Assets
Balance Sheet Assets 13% 13% Loan Book Cash & Cash Equivalents Other Assets 74% 18
Slide 19: Asset Composition
Asset Composition 15% 26% 59% Retail Mortgage Loans Commercial Real Estate Loans Business Loans Particulars Q2 FY22 Yield on Loans 10.8% Cost of Borrowings 8.3% Book Spread 2.5% 19
Slide 20: Liabilities Profile
Indiabulls HOUSING FINANCE Liabilities Profile
Slide 21: Liabilities
Liabilities 18% 8% 73% Shareholders' Funds Borrowings Other Liabilities 21
Slide 22: Funding Mix
Funding Mix 4% 4% 5% 22% 23% 23% 35% 33% 31% 0.4% 38% 39% 41% Sep-19 Sep-20 Sep-21 Non-Convertible Debentures Commercial Papers Bank Loans Sell Down ECB ECB: External Commercial Borrowing 22
Slide 23: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Total Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Cash & Investments 9,629 9,629 7,854 9,044 8,077 9,476 9,126 9,959 9,683 Customer Repayments 64,062 3,980 3,964 3,766 3,523 3,246 3,028 2,916 2,600 Non Current
Slide 24: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Cash & Investments 7,198 8,384 8,521 9,768 9,333 10,640 11,394 11,257 Customer Repayments 2,825 2,464 2,328 2,307 2,330 2,010 1,782 1,740 Non Current Assets - - - - -
Slide 25: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q3FY26 Q4FY26 Q1FY27 Q2FY27 Q3FY27 Q4FY27 Q1FY28 Q2FY28 Cash & Investments 11,792 12,476 13,548 12,659 11,287 11,325 13,521 13,867 Customer Repayments 1,751 2,020 949 1,135 676 2,361 754 749 Non Current Assets - - - - - -
Slide 26: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q3FY28 Q4FY28 Q1FY29 Q2FY29 Q3FY29 Q4FY29 Q1FY30 Q2FY30 Cash & Investments 12,125 13,321 9,122 9,575 9,089 8,652 8,470 8,740 Customer Repayments 1,465 671 659 648 644 587 336 414 Non Current Assets - - - - - - - - Total In
Slide 27: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q3FY30 Q4FY30 Q1FY31 Q2FY31 Q3FY31 Q4FY31 Q1FY32 Q2FY32 10+ Years Cash & Investments 9,093 9,400 9,654 9,872 10,085 10,287 10,479 10,624 10,711 Customer Repayments 358 302 260 253 238 227 176 116 1,505 Non Current Assets -
Slide 28: Product Profiles
Indiabulls HOUSING FINANCE Product Profiles 28
Slide 29: 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 30: 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 31: Beginning of a Long Term Property Market Up-cycle
Beginning of a Long Term Property Market Up-cycle 31
Slide 32: Mortgage Market in India
Mortgage Market in India • 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 rates further bo
Slide 33: Growth Momentum in Residential Real Estate
Growth Momentum in Residential Real Estate Sales pick-up • Housing sales in top 8 Indian cities recorded a 92% YoY growth in Q3 CY2021. Residential sales in Q3 CY2021 exceeded the pre-pandemic 2019 average quarterly sales by 4%1 Mumbai and Pune accounted for 40% of the total housing sales in top 8
Slide 34: Commercial Office Space Absorption
Commercial Office Space Absorption • Commercial office space absorption registered its strongest quarter within the year with 12 million sq.ft. office space getting transacted in Q3 CY2021, a 168% YoY growth1 - Space transacted during Q3 2021 is 83% of the average quarterly volume transacted during
Slide 35: Static Credit Performance Analysis of LAP and HL Pools
Static Credit Performance Analysis of LAP and HL Pools 35
Slide 36: Retail Loan Book of Highest Quality
Retail Loan Book of Highest Quality Portfolio performance of all sold down pools of ₹ 68,444 Cr Initial Pool Details of Initial POS Average Sold Down Pool Loan Pool Disbursement Ticket Size Months on Amortisation Principal Principal [On Disbursement 90+ dpd % 180+ dpd % Type [₹ Cr] [at disbursement]
Slide 37: Home Loans Pool Performance Factsheet: Direct Assignments
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 22 31-Dec-1
Slide 38: Home Loans Pool Performance Factsheet: Direct Assignments
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 17 29-Oct-
Slide 39: Home Loans Pool Performance Factsheet: Direct Assignments
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 6 31-Mar-1
Slide 40: LAP Pool Performance Factsheet: Direct Assignments
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 2 30-Mar-15 1,067.
Slide 41: Home Loans and LAP Pool Performance Factsheet: PTC and PCG Pools
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 3 28-Mar-13 114.6 10
Slide 42: Corporate Social Responsibility
Corporate Social Responsibility 42
Slide 43: Indiabulls Foundation: Corporate Social Responsibility
Indiabulls Foundation: Corporate Social Responsibility Health JanSwasthya Kalyan (JSK) Vahika- Mobile Medical Vans - Free primary health care services provided at doorstep to the underprivileged population of urban slums with 31 JSK- mobile medical vans - 97,219 patients diagnosed and treated in thi
Slide 44: Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding
Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding 44
Slide 45: 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 Current: Ernst & Young [through Indian Member Firm S R Batliboi & Co.] Statutory Auditor Proposed [from H2F
Slide 46: 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 47: Key Financial Metrics
Key Financial Metrics FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 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% 18% 7.5% Cap
Slide 48: 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 Sep-21 Market Price 155 207 272 286 558 674 998 1,194 744 228 193 237 per Share [₹] Dividend per 10 13 20 29 35 36 36 42 40 21 9 - Share [₹] Dividend Yield 6.5% 6.3% 7.4% 10.2% 6.3% 5.3% 3.6% 3.5% 5.4
Slide 49: Shareholding Pattern
Shareholding Pattern 3.7% 21.7% 35.0% 27.2% 12.4% Founder Foreign Institutional Shareholding MFs/Banks/IFI Public Pragati Employee Welfare Trust MF: Mutual Funds; IFI: Indian Financial Institutions As on 30th Sep, 2021 49
Slide 50: Detailed Financials
Indiabulls HOUSING FINANCE Detailed Financials 50
Slide 51: Consolidated Balance Sheet
Consolidated Balance Sheet 51
Slide 52: Consolidated Income Statement
Consolidated Income Statement 52
Slide 53: 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 54: Thank you
Indiabulls HOUSING FINANCE Thank you
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