Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — Q4 FY2021-22 Earnings Presentation
54 slides from Sammaan Capital's earnings presentation, May 20, 2022
Slide 1: Audited Financial Results – Q4 FY2021-22
Audited Financial Results – Q4 FY2021-22 May 20, 2022
Slide 2: Contents
Contents Pg. No. 1. Business Update 03 2. Three-track Roadmap for FY23 and Beyond 04 3. Scalable Retail Asset-Light Business Model 05 4. AIF Platform for Wholesale Loans 06 5. Institutionalization of the Company 07 5. The Last 3 Years: Consolidation & Strategic De-risking 08 6. Stable Asset Quality
Slide 3: Business Update
Business Update Key Financial Highlights: Particulars Q4 FY21-22 Q3 FY21-22 Q2 FY21-22 Q1 FY21-22 Q4 FY20-21 AUM 72,211 73,914 77,010 79,213 80,741 Loan Book 59,333 60,979 64,062 65,438 66,047 Borrowings 52,831 55,361 58,608 60,399 65,343 CRAR 32.6% 31.2% 31.2% 30.9% 30.7% Tier 1 27.2% 25.7% 24.9% 2
Slide 4: Three-track Roadmap for FY23 and Beyond
Three-track Roadmap for FY23 and Beyond Key Operating Metrics: Disbursals, RoA, Customer Franchise 1. Retail Loans: 70% HL:30% LAP 2. AIF Platform for Wholesale 3. Institutionalization [co-lending and sell down] Loans of the Company Disbursal-led AUM Growth: 3%+ RoA Across Products ₹ 2,962 Cr disbur
Slide 5: Scalable Retail Asset-Light Business Model
Scalable Retail Asset-Light Business Model Enterprise Value Driven by Disbursals, RoA, Customer Franchise ₹ 2,962 Cr disbursed through co-lending and sell down in H2FY22 Profile of Loans Disbursed in H2FY22 Total Home Loans LAP Disbursal Amount [₹ Cr] 2,962 2,050 912 Count of Cases 10,872 8,928 1,94
Slide 6: AIF Platform for Wholesale Loans: Balance Sheet-light
AIF Platform for Wholesale Loans: Balance Sheet-light Model to Capture Earning Opportunities in Real Estate Sector • Wholesale AIF platform in partnership with three global funds – one of which is also a strategic global institutional stakeholder. ‒ Approval received from SEBI for one AIF Fund. Laun
Slide 7: Institutionalization of the Company: 60% of Board is Independent
Institutionalization of the Company: 60% of Board is Independent Towards a Board-led, Professionally Managed Company • Process of institutionalization through last 3 years ‒ 2019: Group level exit from real estate business [IBREL] initiated ‒ 2020: Mr. SS Mundra, ex-Deputy Governor RBI takes over as
Slide 8: The Last 3 Years: Consolidation and Strategic De-risking
The Last 3 Years: Consolidation and Strategic De-risking Continuing Focus on Maintaining Fortress Balance Sheet: Capital, Provisions, Liquidity Parameters FY22 FY21 FY20 FY19 FY18 Balance Sheet 81,973 93,239 102,872 130,104 131,903 Net Worth 16,674 16,134 15,538 18,284 13,424 AUM 72,211 80,741 93,02
Slide 9: Stable Asset Quality
Stable Asset Quality Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY21 Gross NPA 2,318 2,350 2,074 2,268 2,147 Gross NPA % 3.21% 3.18% 2.69% 2.86% 2.66% Net NPA 1,364 1,334 1,179 1,227 1,285 Net NPA % 1.89% 1.80% 1.53% 1.55% 1.59% Stage 3 Provisions/ Gross NPA 41% 43% 43% 46% 40% Amounts in ₹ Cr • The Company
Slide 10: Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet
Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet 75,182 75,182 62,088 58,729 55,115 56,524 52,092 42,677 39,501 30,506 19,679 13,442 9,899 11,092 8,028 9,206 7,037 5,681 3,447 1,487 1,058 1,095 1d-14d 15d-1m 1m-2m 2m-3m 3m-6m 6m-1yr 1yr-3Yr 3Yr-5Yr 5Yr-7yr 7Yr-10yr
Slide 11: Access to Funding
Access to Funding In FY22, IBH has raised the following monies: Amount Term Loans of over 3 years’ tenure ₹ 5,600 Cr Loans of 1 to 3 years’ tenure ₹ 10,820 Cr Bonds ₹ 1,345 Cr Loan Sell Downs/ Structured Refinance ₹ 5,214 Cr Equity/ Quasi-equity ₹ 1,517 Cr Total ₹ 24,497 Cr • Raised reference rates
Slide 12: 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^ • Share
Slide 13: Effective Oversight: Independent Chairman, Strong Board, Audit Committee
Effective Oversight: Independent Chairman, Institutional Investor Oversight, 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
Slide 14: Appendix
Indiabulls HOUSING FINANCE Appendix
Slide 15: Financial and Operational Highlights
Financial and Operational Highlights 15
Slide 16: Balance Sheet Assets
Balance Sheet Assets 17% 11% Loan Book Cash & Cash Equivalents Other Assets 72% 16
Slide 17: Asset Composition
Asset Composition 14% 29% 57% Retail Mortgage Loans Commercial Real Estate Loans Business Loans Particulars Q4 FY22 Yield on Loans 10.5% Cost of Borrowings 8.1% Book Spread 2.4% • Reference rates on Housing Loans and Loans Against Property increased by 40 bps for existing borrowers effective from Ju
Slide 18: Liabilities Profile
Indiabulls HOUSING FINANCE Liabilities Profile 18
Slide 19: Liabilities
Liabilities 20% 5% 75% Shareholders' Funds Borrowings Other Liabilities 19
Slide 20: Funding Mix
Funding Mix 5% 5% 3% 23% 22% 29% 32% 34% 30% 38% 42% 38% Mar-20 Mar-21 Mar-22 Non-Convertible Debentures Bank Loans Assignment/ Securitization/ Co-Lending ECB Assignment/ Securitization/ Co-lending contributes to 29% of IBH’s funding mix – an all time high due to increasing co-lending and sell down
Slide 21: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Total Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Cash & Investments 6,376 6,376 6,453 7,761 7,179 8,587 8,896 6,193 7,217 Customer Repayments 59,333 3,523 3,543 3,280 2,956 2,888 2,583 2,827 2,514 Non Current
Slide 22: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Cash & Investments 6,765 7,871 7,324 8,475 8,995 8,721 9,154 9,559 Customer Repayments 2,360 2,245 2,350 2,056 1,839 1,833 1,667 2,057 Non Current Assets - - - - - -
Slide 23: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY27 Q2FY27 Q3FY27 Q4FY27 Q1FY27 Q2FY27 Q3FY27 Q4FY27 Cash & Investments 10,470 9,506 8,000 8,083 9,415 9,356 7,467 8,665 Customer Repayments 1,022 1,199 869 2,104 868 705 1,569 720 Non Current Assets - - - - - - - - Tot
Slide 24: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY29 Q2FY29 Q3FY29 Q4FY29 Q1FY30 Q2FY30 Q3FY30 Q4FY30 Cash & Investments 4,430 4,769 4,256 3,774 3,614 3,854 4,269 4,524 Customer Repayments 649 725 703 696 390 561 384 249 Non Current Assets - - - - - - - - Total Inflow
Slide 25: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY31 Q2FY31 Q3FY31 Q4FY31 Q1FY32 Q2FY32 Q3FY32 Q4FY32 10+ Years Cash & Investments 4,647 4,769 4,889 5,008 5,124 5,240 5,354 5,460 5,564 Customer Repayments 242 236 231 226 221 216 205 198 3,621 Non Current Assets - - -
Slide 26: 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 27: Smart City Home Loan: Technology-led Cost-effective
Smart City Home Loan: Technology-led Cost-effective Delivery through eHomeLoans Platform Minimum Loan Size ₹ 7 Lakhs Average Loan Size ₹ 10 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 Mortgage
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: Beginning of a Long Term Property Market Up-cycle
Beginning of a Long Term Property Market Up-cycle 30
Slide 31: 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 32: Growth Momentum in Residential Real Estate Exceeded Pre-pandemic Average
Growth Momentum in Residential Real Estate Exceeded the Pre-pandemics Quarterly Average Sales pick-up • Housing sales in top 8 Indian cities recorded a 28% growth in Q1 CY2022 compared to pre-pandemic quarterly average of CY20191: ‐ Total housing sales in Q1 CY2022 in top 8 Indian cities reached a
Slide 33: Commercial Office Space Absorption
Commercial Office Space Absorption • Commercial office space absorption registered a growth of 25% YoY in Q1 of CY2022 with 10.8 million sq. ft. office space getting transacted 1 - Transaction volumes in Ahmedabad, Chennai and Hyderabad grew the most at 165%, 124% and 72% YoY respectively in Q1 of C
Slide 34: Static Credit Performance Analysis of LAP and HL Pools
Static Credit Performance Analysis of LAP and HL Pools 34
Slide 35: Retail Loan Book of Highest Quality
Retail Loan Book of Highest Quality Portfolio performance of all sold down pools of ₹ 74,867 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 36: Home Loans Pool Performance Factsheet: Direct Assignments [Sold Down]
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 37: Home Loans Pool Performance Factsheet: Direct Assignments [Sold Down]
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 38: Home Loans Pool Performance Factsheet: Direct Assignments [Sold Down]
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 39: LAP Pool Performance Factsheet: Direct Assignments [Sold Down]
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 40: 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 41: Home Loans and LAP Pool Performance Factsheet: PTC and PCG Pools
Home Loans and LAP Pool Performance Factsheet PTC and PCG Pools LAP 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 31-Mar-16 227.99
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 healthcare services provided at doorstep to the underprivileged population of urban slums with 31 JSK- mobile medical vans - 70,701 patients diagnosed and treated in this
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 Mazars [through Indian Member Firm S. N. Dhawan & Co.] Statutory Auditor Arora & Choudhary Associates Inter
Slide 46: Productivity Ratios
Productivity Ratios FY FY FY FY FY FY FY FY FY FY FY 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 No. of 4,243 4,072 4,099 4,840 5,453 6,388 8,111 8,676 5,405 3,480 4,603 Employees Profit per 0.24 0.31 0.38 0.39 0.43 0.46 0.47 0.47 0.41 0.35 0.26 employee [₹ Cr] Asset per 5.85 8.09 10.84 1
Slide 47: Key Financial Metrics
Key Financial Metrics FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Pre Tax RoAA [%] 4.9% 4.9% 4.8% 4.9% 4.9% 4.6% 4.3% 4.2% 2.2% 1.6% 1.8% Post Tax RoAA [%] 3.7% 3.8% 3.8% 3.7% 3.7% 3.6% 3.3% 3.0% 1.9% 1.3% 1.3% RoE [%] 22% 26% 27% 29% 26% 26% 30% 24% 18% 7.5% 7.2% Ca
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 Mar-22* Market Price 155 207 272 286 558 674 998 1,194 744 228 193 157 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.
Slide 49: Shareholding Pattern
Shareholding Pattern 4.9% 9.6% 26.9% 45.4% 13.1% Founder Foreign Institutional Shareholding MFs/Banks/IFI Public Pragati Employee Welfare Trust MF: Mutual Funds; IFI: Indian Financial Institutions As on 31st Mar, 2022 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
Indiabulls Housing Finance — Q4 FY2021-22 Earnings Presentation on 6ix