Iifl Finance Limited · NSE:IIFL
Iifl Finance — Q1 FY2024 Earnings Presentation
62 slides from Iifl Finance's earnings presentation, Jul 27, 2023
Slide 1: Exchange covering letter: press release and presentation on Q1 results
July 27, 2023 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot C/1, G Block, Dalal Street, Bandra - Kurla Complex, Bandra (E), Mumbai 400 001. Mumbai 400 051. BSE Scrip
Slide 2: IIFL Finance Q1FY24 profit after tax at Rs. 473 Crore, up 43% y-o-y
IIFL Finance Limited Press Release For immediate publication Mumbai, India July 27, 2023 IIFL Finance Q1FY24 Results update IIFL Finance Q1FY24 profit after tax1 at Rs. 473 Crore, up 43% y-o-y For the quarter ended June 30, 2023, the Company reported net profit after tax of Rs. 473 Cr (before non-co
Slide 3: Management commentary and financial performance review
Mr. Nirmal Jain, Founder, IIFL Finance Ltd., remarked on the financial results: “The financial year has begun well and economic activity is showing robust growth. We plan to focus on productivity improvement and sharpening our digital edge in the current year. Banks and NBFCs have been witnessing ve
Slide 4: Business segment review and liquidity position
Microfinance: The microfinance loan AUM stood at Rs. 10,255 Cr, up 63% y-o-y and 5% q-o-q, as at June 30, 2023. The microfinance customer base stood at 24.1 lakh customers. Loan against property: Loan against property AUM grew by 19% y-o-y and 2% q-o-q to Rs. 6,836 as at June 30, 2023. Digital loans
Slide 5: Appointment of Mr. Pranav Dholakia as Chief Risk Officer
fund schemes and is based on the data provided by Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and Metropolitan Stock Exchange of India (MSEI). Appointment of Mr. Pranav Dholakia as Chief Risk Officer Mr. Dholakia is a finance professional having 25+ years of experience of which 20 yea
Slide 6: About IIFL
About IIFL IIFL Group is one of the leading players in the Indian financial services space. Prior to the Composite Scheme of Arrangement (effective May 2019), IIFL Finance Limited (Erstwhile “IIFL Holdings Limited”) (Bloomberg Code: IIFL IN, NSE: IIFL, BSE: IIFL) was engaged in the business of finan
Slide 7: Performance review Quarter ended June 2023 (Q1FY24)
Performance review Quarter ended June, 2023 (Q1FY24) Bloomberg: IIFL IN July 27, 2023
Slide 8: Financial Performance Q1FY24
Financial Performance Q1FY24 3–6 Key Business Metrics 8 – 14 Business Segments Overview 16 – 31 Corporate, Strategy and Others 33 – 42 Financials of the Subsidiaries 44 – 54 Link to download databook 55 2
Slide 9: Q1FY24 Results Snapshot (Consolidated)
Q1FY24 Results Snapshot (Consolidated) Q1FY24 net profit ₹473 Cr - up 43% yoy; RoE at 19.1% Return on Equity3 (₹ Cr) Q1FY24 Q1FY23 YoY% Q4FY23 QoQ % 19.1% Loan AUM 68,178 52,761 29% 64,638 5% Return on Assets 3.6% PPOP1 786.8 654.8 20% 766.1 3% Capital Adequacy 2 PAT (pre NCI ) 472.9 329.7 43% 457.6
Slide 10: Quarterly Results Q1FY24 (Consolidated)
Quarterly Results Q1FY24 (Consolidated) Income ₹1,420 Cr - up 21% yoy, 3% qoq; PBT ₹618 Cr- up 43% yoy, 4% qoq ₹ Cr Q1FY24 Q1FY23 Y-o-Y Q4FY23 Q-o-Q Interest income 1,825.8 1,413.0 29% 1,720.7 6% Interest expense (887.8) (776.0) 14% (860.6) 3% Net interest income 938.0 637.0 47% 860.1 9% Non-fund ba
Slide 11: Quarterly Q1FY24 Income Analysis (Consolidated)
Quarterly Q1FY24 Income Analysis (Consolidated) Non fund income - 34% of total income ₹ Cr Q1FY24 Q1FY23 Y-o-Y Q4FY23 Q-o-Q Loan Book (Ind AS Balance sheet) 41,515 34,343 21% 40,102 4% Assigned assets 17,700 14,577 21% 16,979 4% Co-lending book 8,963 3,842 133% 7,557 19% Loan Assets under management
Slide 12: Consolidated Balance Sheet as at June 30, 2023
Consolidated Balance Sheet as at June 30, 2023 Total Equity at ₹10,665 Cr ASSETS (₹ Cr) LIABILITIES AND EQUITY (₹ Cr) 1 Financial Assets 1 Financial Liabilities (a) Cash and Bank Balances 5,350 (a) Payables 179 (b) Receivables 154 (b) Borrowings (c) Loan Assets 41,847 - NCDs 9,815 (d) Investments 2,
Slide 13: Key Business Metrics
Financial Performance Q1FY24 3–6 Key Business Metrics 8 – 14 Business Segments Overview 16 – 31 Corporate, Strategy and Others 33 – 42 Financials of the Subsidiaries 44 – 54 Link to download databook 55 7
Slide 14: Key business metric - Loan AUM growth
Key business metric - Loan AUM growth Core loan products AUM has grown at 23% CAGR over last 5 years Latest quarter Key business metrics Loan AUM (₹ Cr) Mix % Q1FY24 Q1FY23 YoY % Q4FY23 QoQ % Loan AUM growth Portfolio Yield Home Loan 33% 22,838 18,618 23% 21,800 5% Gold Loan 32% 22,142 17,130 29% 20
Slide 15: Key business metric – Portfolio yield
Key business metric – Portfolio yield Yield is improving with focus on small ticket granular loans Latest quarter Key business metrics Portfolio yield % Q1FY24 Q1FY23 YoY % Q4FY23 QoQ % Loan AUM growth 0.8% 0.2% Portfolio yield Home Loan 11.2% 10.4% 10.9% Gold Loan 17.5% 17.2% 0.3% 17.5% 0.0% Cost o
Slide 16: Key business metric – Cost of borrowing
Key business metric – Cost of borrowing Successfully raised long term funds through secured retail public bonds and via ECB route Last 5 years Average cost of borrowing % Key business metrics Loan AUM growth 9.4% 9.4% 9.4% 9.3% 9.3% 9.0% 9.1% 9.1% 9.0% 9.1% Portfolio yield 8.8% 8.9% 8.8% 8.9% 8.7% 8
Slide 17: Key business metric – Asset quality
Key business metric – Asset quality Non performing assets have consistently been lower than the peer group through cycles Latest quarter Key business metrics GNPA % Q1FY24 Q1FY23 YoY % Q4FY23 QoQ % Last 5 years Loan AUM growth GNPA% NNPA% Portfolio yield Home Loan 1.95% 2.41% (0.46%) 1.92% 0.03% Gol
Slide 18: Key business metric – Profitability
Key business metric – Profitability Net profit has grown at CAGR of 28%, despite covid & liquidity squeeze periods Key business metrics Last 5 years Loan AUM growth Profit after tax RoA RoE Portfolio yield Cost of borrowing 1,608 20.6% 19.9% 19.1% Asset quality 1,188 17.9% 15.3% 712 761 11.3% 3.6% 3
Slide 19: Key business metric – Capital & gearing
Key business metric – Capital & gearing Robust financials with capital adequacy at over 20% and net gearing at 3.3x Latest quarter Key business metrics (₹ Cr) Q1FY24 Q1FY23 YoY % Q4FY23 QoQ % Loan AUM growth Networth (Excl. Minority) 9,134 6,616 38% 8,790 4% Portfolio yield CRAR % Cost of borrowing
Slide 20: Key business metric – Liquidity
Key business metric – Liquidity Well covered to not only meet obligations but sustain growth as well Latest quarter Key business metrics Asset Liability Match (ALM) ₹ Cr Loan AUM growth Surplus across all buckets 54,644 Portfolio yield 45,365 54,644 Cost of borrowing 41,669 39,284 Last 5 years Asset
Slide 21: Business Segments Overview
Financial Performance Q1FY24 3–6 Key Business Metrics 8 – 14 Business Segments Overview 16 – 31 Corporate, Strategy and Others 33 – 42 Financials of the Subsidiaries 44 – 54 Link to download databook 55 15
Slide 22: Home loan – Industry overview and our Right to win
Home loan – Industry overview and our Right to win INDUSTRY OVERVIEW IIFL’s RIGHT TO WIN LEADING HFC IN AFFORDABLE HOUSING SPACE • Housing shortage (EWS/LIG): 9.5 Cr units • Strong player in the sub ₹20L loan ticket size category • EWS/LIG account for 95% of potential • Network of 397 home loan bran
Slide 23: Home loan – Product overview
Home loan – Product overview Small loans for affordable homes, in small towns and suburbs of metros Distribution of AUM as at June 30,2023 (₹ Cr) Tamil Nadu, Kerala, West Bengal, Assam Primary focus on affordable and non-metro customers Puducherry, 2% 2% Karnataka, 5% Maharashtra 85% of home loa
Slide 24: Home loan – financial overview
Home loan – financial overview Improving yields and stable asset quality Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 2,428 11.2% 10.9% 1,951 1,882 1,880 1,814 10.3% 10.3% 10.0% 9.8% FY19 FY20 FY21 FY22 FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 GNPA (%) Salaried and Self Employed Mix (%)
Slide 25: LAP – Industry overview and our Right to win
LAP – Industry overview and our Right to win INDUSTRY OVERVIEW IIFL’s RIGHT TO WIN LEADING PLAYER WITH A WELL ESTABLISHED NETWORK • 64 Mn MSMEs in India with only 14% having access to credit TOTAL ADDRESSABLE • Leading player in the sub ₹30L secured loan ticket size • 40% have been denied credit due
Slide 26: Loan Against Property (LAP) – product overview
Loan Against Property (LAP) – product overview Focus on digital lending to MSME sector and individuals Distribution of AUM as at June 30,2023 (₹ Cr) For secured business loans against residential, commercial and industrial property West Bengal, 2% Gujarat, 5% Rajasthan, 5% Andhra Pradesh, End us
Slide 27: Loan Against Property (LAP) – financial overview
Loan Against Property (LAP) – financial overview Improving yields and asset quality; disbursals turning granular Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 17.9% 18.3% 982 14.3% 14.8% 15.1% 15.0% 792 720 640 561 FY19 FY20 FY21 FY22 FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 GNPA (%) Onbo
Slide 28: Digital loan – Industry overview and our Right to win
Digital loan – Industry overview and our Right to win INDUSTRY OVERVIEW IIFL’s RIGHT TO WIN EXPANDING REACH DIGITALLY • Of the 64 Mn MSMEs, only 14% have access • 100% digital journey enabled through Account to credit TOTAL ADDRESSABLE Aggregator, o-KYC, e-KYC & c-KYC, OCR checks to limit • MSME cre
Slide 29: Digital loan – product overview
Digital loan – product overview Focus on digital lending to MSME sector and individuals Distribution of AUM as at June 30, 2023 (₹ Cr) Others, 11% For business loans backed by cash flows Madhya Pradesh, 3% Focus on balancing prudent credit underwriting with Andhra Pradesh, 3% instant in-principl
Slide 30: Digital Loan – financial overview
Digital Loan – financial overview Improving yields and asset quality and disbursals Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 898 911 23.3% 23.3% 693 716 20.8% 501 20.6% 19.9% 19.7% FY19 FY20 FY21 FY22 FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 GNPA (%) Onboarding Average Ticket Size (₹
Slide 31: Gold loan – Industry overview and our Right to win
Gold loan – Industry overview and our Right to win INDUSTRY OVERVIEW IIFL’s RIGHT TO WIN LARGE BRANCH NETWORK BUILT ON CUSTOMER FOCUS • Among top 2 NBFCs in the country in gold loans • Gold holdings in India: 28,000 tonnes TOTAL ADDRESSABLE segment, having grown at a CAGR of 39% over FY19- • % holdi
Slide 32: Gold loans – product overview
Gold loans – product overview Secured low-risk short term loans to neighborhood customers Distribution of AUM as at June 30,2023 (₹ Cr) Assam, Tripura, 3% In-house loan origination through growing network of Bihar, Jharkhand, 2% Tamil Nadu, Puducherry, 3% branches and increasing use of digital tec
Slide 33: Gold loans – financial overview
Gold loans – financial overview Stable yields and asset quality Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 19.0% 11,245 18.1% 18.0% 17.5% 17.5% 17.5% 9,304 7,135 6,811 7,177 FY19 FY20 FY21 FY22 FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 GNPA (%) Onboarding Average Ticket Size (₹ ‘000) 69
Slide 34: Microfinance – Industry overview and our Right to win
Microfinance – Industry overview and our Right to win INDUSTRY OVERVIEW IIFL’s RIGHT TO WIN • Potential Households in eligible income ESTABLISHED BASE AND CONSISTENT TRACK RECORD category (HHs): 20.32 mn • MFI Outreach: 28.5% • Major microfinance player with diversified geo presence • Average loan o
Slide 35: Microfinance loans – product overview
Microfinance loans – product overview Focus on self employed, low income women groups for micro business Distribution of AUM as at June 30,2023 (₹ Cr) Gujarat 2% Small-ticket loans for purpose of income generation Maharashtra,Goa 2% Assam,Tripura, Arunachal Pradesh 1% activities Jharkhand 3% Harya
Slide 36: Microfinance loans – financial overview
Microfinance loans – financial overview Improving yields and asset quality; disbursals picking up Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 3,750 23.4% 23.8% 24.2% 22.6% 22.3% 21.9% 2,699 2,277 1,834 1,374 FY19 FY20 FY21 FY22 FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 GNPA (%) MFI - Non
Slide 37: Construction Real Estate (CRE) & Capital Market
Construction Real Estate (CRE) & Capital Market Not core but businesses synergistic to Group’s core businesses Construction and Real Estate (CRE) CRE Asset Under Management (₹ Cr) • IIFL Finance will continue to provide funding for completion of its already funded projects, with appropriate 5,055 4,
Slide 38: Corporate, Strategy and Others
Financial Performance Q1FY24 3–6 Key Business Metrics 8 – 14 Business Segments Overview 16 – 31 Corporate, Strategy and Others 33 – 42 Financials of the Subsidiaries 44 – 54 Link to download databook 55 32
Slide 39: Retail Lending: Phygital and Partnership model
Uniquely placed to dominate non banking retail lending Our business is built on Phygital and Partnership model Retail Lending Strong collateral or cash flow backed loans, in segments with robust growth potential Phygital Partnerships Physical Digital Banks Fintechs Network of 4,412 Innovative digita
Slide 40: Our partnerships with banks for co-lending, co-origination and business correspondence
Our partnerships with banks for co-lending, co-origination and business correspondence.. Gold Loans Home Loans Colending disbursal (₹ Cr.) Co-lending as a % of AUM Colending disbursal (₹ Cr.) Co-lending as a % of AUM 4,161 4,311 30.0% 991 818 643 18.9% 1,619 1,789 1,900 631 654 24.3% 18.3% 19.4% 222
Slide 41: Marquee global investors and shareholding pattern
Since inception, marquee global investors have reposed faith in our business & management Shareholding Pattern % holding Promoters 24.8 Institutional Investors 54.6 (Formerly CDC Group) Fairfax 20.9 2010 2016 Capital Group 8.0 Bank Muscat India Fund 3.3 Vanguard 2.9 Ward Ferry 2.0 2007 2011 2022 Max
Slide 42: Distinguished Board of Directors
Distinguished Board of Directors IIFL Finance – Board of Directors Nirmal Jain R Venkataraman A K Purwar Managing Director Joint Managing Director Chairman and Independent MBA, IIM Ahmedabad; MBA, IIM Bangalore; Director Rank holder CA & Cost accountant B-Tech, IIT Kharagpur M Com., Allahabad Univer
Slide 43: Experienced senior management team
Experienced senior management team IIFL Finance IIFL Home Finance IIFL Samasta Finance N Venkatesh Kapish Jain Monu Ratra Chief Executive Officer Group Chief Financial Officer Chief Executive Officer Strategic leadership Program Chartered Accountant Qualified architect and MBA in microfinance at Har
Slide 44: ESG - Environment
ESG - Environment Supporting a sustainable economy through focus on environment Adopting environmentally conscious solutions in our business initiatives as well IIFL has signed a US$ 68 million Pioneered Green Building concept in loan with Asian Development Bank (ADB) to partnership with housing dev
Slide 45: ESG - Social
ESG - Social Promoting financial inclusion IIFL is firmly committed to support economic activity and financial inclusion through its loan offerings while adapting to changes in the external environment. 64% of gold loan disbursed are of less than ₹ 50,000 value 43% of loans given till date are t
Slide 46: ESG - Social: CSR projects
ESG - Social CSR projects continue with creative use of technology Smart Shaala – Rajasthan (3 Districts) Annual Medical Camp – Pandharpur (Solapur) Maharashtra IIFL Foundation, has implemented the biggest TV based learning Medical Camp was held in pandharpur programme (Smart Shaala) along with
Slide 47: ESG - Governance
ESG - Governance Conducting our business with integrity Establishing vision, mission and values and determining, reviewing the goals and policies of the Company from time to time Promote sound corporate governance practices, Corporate policies and guidelines: Board Diversity Policy, ethical standard
Slide 48: IIFL's brand and credibility recognized at various forums
IIFL’s brand and credibility recognized at various forums IIFL Finance awarded for ‘Enabling access to IIFL Finance received ‘Customer Services IIFL Finance received ‘Marketing Campaign short-term credit for MSMEs’ at Sahamati Excellence Award’ at the Asia Awards for of the Year’ Award at Global Bra
Slide 49: Financials of the Subsidiaries
Financial Performance Q1FY24 3–6 Key Business Metrics 8 – 14 Business Segments Overview 16 – 31 Corporate, Strategy and Others 33 – 42 Financials of the Subsidiaries 44 – 54 Link to download databook 55 43
Slide 50: Loan AUM split across Group entity
Loan AUM split across Group entity IIFL Finance is listed holding NBFC with 2 major subsidiaries for housing & Micro-finance IIFL Finance IIFL Home IIFL Samasta IIFL Finance As on Q1FY24 (₹ Cr) Standalone Finance Finance Consolidated Home Loans - 22,838 - 22,838 Gold Loans 22,142 - - 22,142 Loan Aga
Slide 51: Reconciliation of reported consolidated results with Group entities
Reconciliation of reported consolidated results with Group entities Year end results for the period ended June 30, 2023 IIFL Finance IIFL Home IIFL Samasta Intergroup IIFL Finance ₹ Cr Standalone Finance* Finance adjustments Consolidated Interest income 714.8 615.4 487.5 8.1 1,825.8 Interest expense
Slide 52: IIFL Finance (Standalone): Quarterly Results
IIFL Finance (Standalone): Quarterly Results ₹ Cr Q1FY24 Q1FY23 Y-o-Y Q4FY23 Q-o-Q Interest income 714.8 652.2 10% 671.0 7% Interest expense (387.8) (367.9) 5% (369.6) 5% Net interest income 327.0 284.2 15% 301.4 8% Non-fund based income 267.6 295.0 (9%) 400.0 (33%) Total income 594.6 579.3 3% 701.4
Slide 53: IIFL Finance (Standalone): Financial trends
IIFL Finance (Standalone): Financial trends Robust financial performance and growth Loan AUM (₹ Cr) Profit after tax (PAT) (₹ Cr) On Book Off Book 25,573 27,511 745 806 19,199 21,109 16,057 14,460 451 343 149 151 12,305 13,119 14,640 12,625 14,048 14,428 FY19 FY20 FY21 FY22 FY23 Q1FY24 FY19 FY20 FY2
Slide 54: IIFL Finance (Standalone): Key ratios trends
IIFL Finance (Standalone): Key ratios trends Income, return, asset & leverage ratios Operating Expenses to Average AUM (%) Net Gearing Branch expansion 3.5 3.2 3.0 2.7 2.8 5.7% 5.6% 5.3% 5.1% 2.2 4.4% 4.2% FY19 FY20 FY21 FY22 FY23 Q1FY24 FY19 FY20 FY21 FY22 FY23 Q1FY24 Provisions to PPOP (%) Provisi
Slide 55: IIFL Home Finance (Consolidated): Quarterly Results
IIFL Home Finance (Consolidated): Quarterly Results ₹ Cr Q1FY24 Q1FY23 Y-o-Y Q4FY23 Q-o-Q Interest income 615.4 449.9 37% 574.5 7% Interest expense (321.6) (280.1) 15% (318.0) 1% Net interest income 293.8 169.8 73% 256.5 15% Non-fund based income 147.0 186.3 (21%) 131.3 12% Total income 440.8 356.1
Slide 56: IIFL Home Finance (Consolidated): Financial trends
IIFL Home Finance (Consolidated): Financial trends Robust financial performance and growth Loan AUM (₹ Cr) Profit after tax (PAT) (₹ Cr) On Book Off Book 29,595 768 28,512 23,617 593 20,694 18,158 18,495 401 306 245 229 18,055 18,855 13,400 12,814 14,855 15,669 FY19 FY20 FY21 FY22 FY23 Q1FY24 FY19 F
Slide 57: IIFL Home Finance (Consolidated): Key ratios trends
IIFL Home Finance (Consolidated): Key ratios trends Income, return, asset & leverage ratios Operating Expenses to Average AUM (%) Net Gearing Branch 6.9 expansion 6.0 5.6 1.7% 1.6% 4.6 1.4% 1.5% 1.2% 1.2% 2.4 2.3 FY19 FY20 FY21 FY22 FY23 Q1FY24 FY19 FY20 FY21 FY22 FY23 Q1FY24 Provisions to PPOP (%)
Slide 58: IIFL Samasta Finance: Quarterly Results
IIFL Samasta Finance: Quarterly Results ₹ Cr Q1FY24 Q1FY23 Y-o-Y Q4FY23 Q-o-Q Interest income 487.5 310.9 57% 455.3 7% Interest expense (198.8) (128.0) 55% (175.2) 13% Net interest income 288.7 182.9 58% 280.1 3% Non-fund based income 94.6 53.1 78% 92.3 2% Total income 383.2 236.0 62% 372.3 3% Opera
Slide 59: IIFL Samasta Finance: Financial trends
IIFL Samasta Finance : Financial trends Robust financial performance and growth Loan AUM (₹ Cr) Profit after tax (PAT) (₹ Cr) On Book Off Book 128 11,072 10,552 107 92 6,484 66 53 51 4,796 3,400 7,999 8,232 2,285 5,773 4,117 1,819 2,301 FY19 FY20 FY21 FY22 FY23 Q1FY24 FY19 FY20 FY21 FY22 FY23 Q1FY24
Slide 60: IIFL Samasta Finance: Key ratios trends
IIFL Samasta Finance : Key ratios trends Income, return, asset & leverage ratios Operating Expenses to Average AUM (%) Net Gearing 8.0% 7.1% 6.9% 7.2% 6.7% 5.6 5.3 5.5% 4.9 4.9 4.6 3.4 FY19 FY20 FY21 FY22 FY23 Q1FY24 FY19 FY20 FY21 FY22 FY23 Q1FY24 Provisions to PPOP (%) Provisions to Average Loan B
Slide 61: Link to download data book
Link to download data book Data reported across previous quarters is now continued to be reported in a Data Book, maintained in an excel format on our website. The Link for the data book is hosted below. Click here to download excel 55
Slide 62: Thank you
Thank you Published in July 2023 IIFL Finance Ltd. All rights reserved. Regd. Off: IIFL House, Sun Infotech Park, Road No. 16V, Plot No.B-23, Thane Industrial Area, Wagle Estate, Thane – 400604. This report is for information purposes only and does not construe to be any investment, legal or taxatio