Can Fin Homes Ltd. · NSE:CANFINHOME
Can Fin Homes — Q3 FY2024 Earnings Presentation
35 slides from Can Fin Homes's earnings presentation, Jan 20, 2024
Slide 1: Submission of Investor Presentation - Post Q3 FY24 results
CAN FIN HOMES LIMITED Registered Office No. 29/1, 1st Floor, Sir M N Krishna Rao Road Near Lalbagh West Gate, Basavanagudi Bengaluru – 560 004 Tel: 080-48536192; Fax: 26565746 e-mail: compsec@canfinhomes.com Web: www.canfinhomes.com CIN – L85110KA1987PLC008699 CFHRO SE CS LODR 20/2024 January 20, 20
Slide 2: Investor Presentation Q3FY24
Investor Presentation Q3FY24 36 years of vision, passion and progress Offering home loans since 1987….. and it is just a beginning January 2024
Slide 3: Legacy, Focus, Reach, Financials, Vision
Legacy Focus Reach Financials Vision • 36 year old • To promote home • Headquartered (Q3FY24) • To increase lending institution registered ownership across • Net Int Income: to new home in Bengaluru as a deposit taking India, with a motto Rs.328.83 Cr aspirants, enhance HFC with NHB of friendship •
Slide 4: Journey of Can Fin Homes
JOURNEY OF CAN FIN HOMES ET Edge 2015 Promising 2021 Brand Award to Can Fin Homes Ltd. 1989 11 more branches Rights issue of CFHL are added, including – mCap over New Delhi 1991 Loan book crossed Rs. 1000 Cr Rs. 100 Cr Successful completion of 35 Years Loan book over 2016 100th branch at Begur, Rs.
Slide 5: Company's reliance on crucial growth parameters
The Company’s reliance on the crucial parameters of growth, asset quality, profitability, liquidity, The reliance on digital platforms has In order to facilitate its upward backed by good governance and increased phenomenally over the past trajectory, the Company intends to due diligence will contin
Slide 6: Our Strengths
II Our Strengths • Consistent support from the sponsor.- Canara Bank. • Expertise gained over 36 years in housing 1989 finance. • Eminent personalities with rich experience on the Board. • Quick, hassle free and customer friendly lending process. • Transparent and timely updation to stakeholders. 20
Slide 7: Borrowings and credit ratings
Position as on 31/12/2023 Borrowings CARE ICRA IND Ra Term Loans (Long Term Loan) AAA/Stable AAA/Stable Term Loans (Short Term Loan) A1+ NHB Borrowings AAA/Stable Commercial Papers (CPs) A1+ A1+ Non-Convertible Debentures (NCDs) AAA/Stable AAA/Stable AA+/Stable Public Deposits AAA/Stable Upgraded ww
Slide 8: Board of Directors
Chairman (Promoter) Managing Director & CEO Director (Promoter) Director (Independent) Director (Independent) Director (Independent) Director (Independent) Director (Independent Deputy Managing Director www.canfinhomes.com 7
Slide 9: Senior management team
Chief Financial Officer General Manager Company Secretary Total Exp: 14 Years Total Exp: 36 Years Total Exp: 20 Years Service in Can Fin - 1 Year Service in Can Fin - 33 Years Service in Can Fin – 04 months Head - Collections Head – Products & Strategy Head – Credit Total Exp: 30 Years Total Exp: 34
Slide 10: Lead generation, due diligence, sanction and disbursement
Lead Generation Through Website, Customer Referral, Direct marketing and DSA channel. Due Diligence CKYC-UIDAI linked verification; Bank account verification through PERFIOS; Field verification of residence, employment, property in each proposal; PAN verification; Online ITR verification through web
Slide 11: Documentation, collection, monitoring and reconciliation
Documentation Pre-filled System Generated documents - ready for Execution. Storage of Loan Centralised Document Storage at 3 different locations Pan India. Dockets Collection Through E -NACH, Salary deduction. Option for online Payment. Monitoring Data mining for EWS Monthly OTMS reports Cluster Ris
Slide 12: Our digital focus areas
Our digital focus areas: Providing Creating a digital Automation and Building robust personalized and financial services digitization of and secure digital seamless services to bouquet in processes to capabilities across our customers across collaboration with make things platforms to the country so
Slide 13: Q3FY24 key highlights
1. Loan Book reached Rs. 34053 Cr 7. Gross NPA 0.91% & Net NPA 0.49%. (+13% YoY) with a clientele base of 2.53 lakh. 8. The Salaried and Professional segment constitutes 72% of the 2. NII: Rs. 328.83 Cr, PBT: Rs.255.69 Cr outstanding loan book as on and PAT: Rs.200.13 Cr. Dec 23. Housing forms 89% o
Slide 14: Year on Year and Sequential
* Amt in Crs Sl. Year on Year and Sequential Particulars No. Dec’23 (3m) Dec’22 (3m) Sep’23 (3m) 1 New Approvals 2052.52 2587.31 2123.48 2 Disbursements 1879.46 2408.03 2019.16 3 Outstanding Loan Book 34053.41 30115.13 33359.30 4 Net Interest Income 328.83 251.71 316.77 5 Operating Profit 286.50 212
Slide 15: Key ratios - period ended
* Amt in Crs Sl. PERIOD ENDED Particulars No. Dec’23 (3m) Dec’22 (3m) Sep’23 (3m) 1 Return on Avg Assets (Annualised) 2.33% 2.16% 1.86% 2 Return on Avg Equity (Annualised) 19.36% 17.30% 15.96% 3 Earning Per Share (Rs.) 15.03 11.38 11.87 4 Net Interest Margin (%) 3.92% 3.47% 3.80% 5 Yield on Loan Por
Slide 16: Year on Year (As per IND AS) 9 months
* Amt in Crs Sl. Year on Year (As per IND AS) Particulars No. Dec’23 (9m) Dec’22 (9m) Growth% 1 New Approvals 6206.47 6688.02 -7% 2 Disbursements 5864.69 6409.05 -9% 3 Outstanding Loan Book 34053.41 30115.13 13% 4 Net Interest Income 930.69 753.28 24% 5 Operating Profit 804.27 644.01 25% 6 Provision
Slide 17: Key ratios - 9 months period ended
* Amt in Crs Sl. PERIOD ENDED Particulars No. Dec’23 (9m) Dec’22 (9m) 1 Return on Avg Assets (Annualised) 2.11% 2.17% 2 Return on Avg Equity (Annualised) 17.47% 17.30% 3 Earning Per Share (Rs.) 40.68 34.20 4 Net Interest Margin (%) 3.69% 3.46% 5 Yield on Loan Portfolio (%) 10.01% 8.66% 6 Cost (%) 7.
Slide 18: Results with and without Ambala
* Amt in Crs PERIOD ENDED Sl Particulars Dec’23 (3m) Sept’23 (3m) No. (With Ambala) (Without Sep’23(3m) (With Ambala) Ambala) 1 Profit Before Tax 255.69 237.65 197.98 2 Profit After Tax 200.13 187.76 158.07 3 Return on Assets 2.33% 2.21% 1.86% 4 Return on Equity 19.36% 18.82% 15.96% 5 EPS 15.03 14.1
Slide 19: DSA sourcing and disbursement
FY23 Q1FY24 Q2FY24 Q3FY24 Active DSA's 1463 1464 1316 1174 Total Disbursement (Crores) 8947 1966 2019 1879 Total DSA Sourced Amount(Crores) 7302 1667 1651 1500 % share of total business 82% 85% 82% 79% Share of Top 20 DSA's Amount(Crores) 1011 247 233 209 % share of total business 11% 12% 11% 11% Di
Slide 20: Loan book movement and run off
* Amt in Crs Opening Disbursement Amortization+ Closing Balance Run Off Balance(A) (B) Prepayment (D=A+B-C) E= C/A (C) Mar-21 21026 2002 902 22126 4.29% Q1 FY 22 22126 894 778 22221 3.61% Q2 FY 22 22242 2208 844 23584 3.89% Q3 FY 22 23605 2472 965 25091 4.18% Q4 FY 22 25112 2730 1084 26711 4.50% Q1
Slide 21: Category-wise product-wise distribution of loan book
CATEGORY-WISE PRODUCT-WISE DISTRIBUTION OF LOAN BOOK * Amt in Crs Sl. Dec - 22 Mar - 23 Jun - 23 Sep - 23 Dec - 23 Particulars No. O/s Amt. O/s Amt. 0/s Amt 0/s Amt 0/s Amt 1 Salaried & Professionals i) Housing Loans 20256 21071 21602 22067 22442 ii) Top-up Personal Loans 915 960 990 1020 1040 iii)
Slide 22: Outstanding loan book by purpose
OS FY 2023 - 2024 OS FY 2022 - 2023 Others Mortgage Others Mortgage 16% 4% 16% 5% Renovation Renovation 3% 4% Resale Resale 2% 4% Flat Flat 14% Construction 14% 60% Construction 58% www.canfinhomes.com 21
Slide 23: Funding mix
Funding Mix @ Dec 2023 (as %) Funding Mix @ Dec 2022 (as %) CP Deposits 5% 1% CP Deposits 9% 2% NCD 15% NCD 15% Banks 51% NHB Banks 19% 60% NHB 23% Total Borrowings – Rs. 31196 Crs Total Borrowings – Rs. 27813 Crs www.canfinhomes.com 22
Slide 24: Disbursement and loan portfolio by ticket size
Disbursement FY 2023 -24 (9m) Loan Portfolio as on Dec’23 35.73% 34.01% 34.78% 32.67% 27.09% 28.20% 28.48% 26.35% 25.73% 25.05% 26.06% 23.09% 12.87% 13.17% 13.07% 13.65% 0 - 10L 10 - 20L 20 - 30L >30L 0 - 10L 10 - 20L 20 - 30L >30L Dec-23 Dec-22 Dec-23 Dec-22 www.canfinhomes.com 23
Slide 25: Category-wise shareholding
SI No. Category shareholding as % 4.00 9.44 29.99 1 Promoter 29.99 11.06 2 Mutual Funds 26.70 3 Individual 18.81 4 Foreign Corporate Bodies 11.06 18.81 5 Bodies Corporate 9.44 26.70 6 Others 4.00 7 Grand Total 100.00 Promoter Mutual Funds Individual Foreign Corporate Bodies Bodies Corporate Others w
Slide 26: Yield, cost, spread and margin trends
9.87% 9.84% 9.93% 10.01% 3.47% 3.48% 3.62% 3.69% 3.37% 8.11% 7.35% 2.60% 2.66% 7.51% 7.32% 2.55% 2.52% 7.32% 5.56% 2.36% Q3 FY 22-23 Q4 FY 22-23 Q1 FY 23-24 Q2 FY 23-24 Q3 FY 23-24 Q3 FY 22-23 Q4 FY 22-23 Q1 FY 23-24 Q2 FY 23-24 Q3 FY 23-24 www.canfinhomes.com 25
Slide 27: Asset classification and ECL provisions
* Amt in Crs Provision as Balance as on Provision as Asset Classification ECL Stages per ECL 31 Dec 2023 per IRAC Model Standard Asset 1 30659 SMA 0 1 1476 144.67 150.67 SMA 1 2 870 SMA 2 2 739 NPA 3 309 131.16 141.45 Total Portfolio 34053 275.83 292.12 Undisbursed Loan Commitment 1317 3.88 Manageme
Slide 28: Gross NPA and Net NPA, provision held
Gross NPA & Net NPA (%) Provision held * Amt in Crs 0.91 0.76 34 0.63 34 0.55 17 17 0.49 141 0.43 0.34 112 0.26 91 96 Q4 FY 22-23 Q1 FY 23-24 Q2 FY 23-24 Q3 FY 23-24 Q4 FY 22- 23 Q1 FY 23- 24 Q2 FY 23- 24 Q3 FY 23- 24 Provision for NPA Management Overlay www.canfinhomes.com 27
Slide 29: Provision coverage as % of GNPA
* Amt in Crs FY23 As % of H1FY24 As % of Q3FY24 As % of GNPA GNPA GNPA Gross NPA 174 254 309 A. ECL Provision (Stage 3) 91 52% 112 44% 141 46% B. Management Overlay 17 34 34 Total Provision available 108 62% 146 58% 175 57% (A+B) C. Prov for Restructured 68 68 58 Pool Total Provision available 176 1
Slide 30: NPA with and without restructured accounts
* Amt in Crs 96.07 NPA Amount NPA% Quarter Without Only Without Only 64.18 Restructur Restructur Restructur Restructur 19.50 ed accts ed ed accts ed 1.66 Q4FY23 172.19 1.66 0.55% 0.005% Q1FY24 185.68 19.50 0.57% 0.06% 212.77 Q2FY24 190.27 64.18 0.57% 0.19% 185.68 190.27 172.19 Q3FY24 212.77 96.07 0.
Slide 31: Branches and loan portfolio by region
No. of Branches Loan Portfolio (%) 63% 72% 13% 15% 13% 11% 4% 5% 2% 1% Central East North South West Central East North South West www.canfinhomes.com 30
Slide 32: Process and operational initiatives
Centralized Disbursement Implemented from 03/10/2023 Centralized Vendor Payments Under UAT Online Reconciliation Implemented from November 2023 CRM All branches covered from 01/10/2023 Litigation Management Implemented from 22/08/2023 Software Quarterly Cluster level risk monitoring implemented from
Slide 33: RCSA, fraud control and app-based valuation
✓ RCSA ✓ Fraud control unit will be augmented – ITR, PAN, Aadhar, Phone and Mail IDs verification through App – Pilot done at 18 branches. ✓ App based valuation – Pilot project initiated for 8 branches. www.canfinhomes.com 32
Slide 34: Branch offices (213)
(213 BRANCH OFFICES) • Odisha – Bhubaneshwar, • Punjab – Jalandhar Berhampur, Jharsuguda, • Telangana – Hyderabad (13 Cuttack branches), Siddipet, Warangal, • Chandigarh Karimnagar, Khammam, • Bihar – Patna Mancherial, Nizamabad • Rajasthan – Alwar, Jaipur, Mansarovar, Kota, Udaipur, • Tamilnadu – H
Slide 35: For Further Information: Please Contact
The forward looking statements and projections, if any, contained in this presentation are predictions and involve known and unknown risks, uncertainties and other factors including the future changes or developments, the competitive environment, ability to implement the strategies and initiatives,