India Shelter Finance Corp. Ltd. · NSE:INDIASHLTR
India Shelter Finance — Q4 FY24 Earnings Presentation
43 slides from India Shelter Finance's earnings presentation, May 2024
Slide 1: Investor Presentation Q4 & FY24
Investor Presentation Q4 & FY24 India Shelter Finance Corporation Limited
Slide 2: 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 3: FY24 Snapshot
FY24 Snapshot AUM Employees Spread Gross Stage 3 ROA Rs. Crore 6,084 40% YoY 3,323 6.1% 1.0% -16bps YoY 4.9% Disbursement States Secured Book Net Stage 3 ROE Rs. Crore 2,646 35% YoY 15 100% 0.7% -10bps YoY 14.0% PAT Branches Average Ticket Size2 PCR3 CRAR | Leverage Rs. Crore Rs. Lakhs 248 59% YoY 2
Slide 4: Key Highlights & Executive Summary – Q4FY24
Key Highlights & Executive Summary – Q4FY24 • Delivered AUM growth of 40% YoY to Rs. 6,084 Cr Business • Portfolio LTV maintained at 51%, ATS continues to be at Rs. 10 Lacs Metrics & AUM ROA Expansion • The company continues to deepen its presence by adding 8 new branches in Q4FY24 • Geographic pres
Slide 5: About the Company
About the Company India Shelter Finance Corporation Limited 5
Slide 6: Who we are
Who we are What we do Deep Vintage Focus on India Shelter provides affordable home Founded in 2010, India Shelter has a 14-year loans and loan against property in Tier 2 and 3 geographies in India. vintage that results in deep understanding of the segment Underserved Customer Base Focus Segment Corp
Slide 7: Growth Journey
Growth Journey AUM (Rs. Crores) AUM crosses 48% Rs. 6,000 Crs IND RA: CAGR Upgraded to AA- (Stable) (FY14-FY24) Listed on BSE, NSE CARE: PAT crosses Upgraded to 6,084 A+ (Positive) Rs. 100 crs Acquires ICRA: majority Presence in stake Upgraded 15 States 4,359 to A- (Positive) AUM crosses Rs. 1,000 c
Slide 8: Continuous Growth With Focus On Fundamentals
Continuous Growth With Focus On Fundamentals No. of States 15 No. of Branches 223 Disbursement (INR Cr) 2,646 AUM (INR Cr) 6,084 FY 24 FY 24 FY 24 FY 24 2.8x 4.7x 5.2x 12 81 566 1,178 FY 19 FY 19 FY 19 FY 19 PAT (INR Cr) 248 Opex / AUM 4.5% ROE 14.0% GNPA 1.0% FY 24 FY 24 FY 24 FY 24 8.1x 30 7.8% 4.
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 Dixit 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 Director
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 20+ yrs of experience 18+ yrs of experience 22+ yrs of experience 22+ yrs of experience Ex-Cholamandalam Ex-Satin Micro
Slide 12: Shareholding Pattern
Shareholding Pattern Key Institutional Investors Investor % Holding 1.9% 1.5% WestBridge Key Investors WestBridge Capital^ 46.8% Nexus 5.3% Nexus Venture Partners^ 21.3% 3.4% DII Madison^ 4. 9% DIIs (MFs, AIFs, Insurance) 19.8% Publics & others 46.8% Quant Mutual Fund* 2.7% Nippon Mutual Fund* 2.4%
Slide 13: Business Update
Business Update India Shelter Finance Corporation Limited 13
Slide 14: Industry Dynamics
Industry Dynamics Housing Market Size LAP Market Size Segment % Segment % <0.5 million 2% <0.5 million 5% Focus 0.5 million to 2.5 million 35% 24% Focus Segment 0.5 million to 2.5 million Segment >2.5 million 63% >2.5 million 71% Overall 100% Overall 100% ₹ 47 Tn ₹ 18 Tn ₹ 14 Tn ₹ 5 Tn ₹ 31.1 Tn ₹ 1
Slide 15: Robust Growth With Profitability
Robust Growth With Profitability Disbursement (Rs. Crores) AUM (Rs. Crores) 40% PAT (Rs. Crores) YoY 8% 35% QoQ YoY 59% 6,084 YoY 2,646 5,609 248 1,964 24% 47% YoY 4,359 YoY 155 10% 25% QoQ QoQ 679 747 78 603 62 53 1 53 63 1 146 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY2
Slide 16: Consistent Asset Quality
Consistent Asset Quality Stage 3/ GNPA (%) DPD above 90 DPD upto 90 Stage 3/ NNPA (%) 1.1% 1.2% 1.0% 0.07% 0.05% 0.02% 0.9% 0.8% 0.7% 1.1% 1.1% 1.0% Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 30+ DPD (%) Collection Efficiency (%) 3.5% 101% 101% 99% 2.4% 2.4% Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24
Slide 17: Maintaining Spreads
Maintaining Spreads Yield COF Spread 14.7% 14.8% 14.9% 8.7% 8.8% 8.8% • Cost of Funds (COF) maintained at 8.8% as on March’24 • Marginal Cost of Funds for FY24 is at 8.6% 6.0% 6.0% 6.1% Mar'23 Dec'23 Mar'24 17 Yield on AUM | Yield and COF is position as at the end of relevant period and is excluding
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, Mar-24) No of AUM AUM /Branch AUM /Branch Branch Vintage Branches (Rs. Crs) FY24 FY21 Up to 1 year 42 220 5 1 1 to 3 years 69 1,326 19 14 More than 3
Slide 19: Customer & Portfolio Demographics
Customer & Portfolio Demographics >20 to 25L >25L ≤5L Salaried Loan against Tier - 1 7% 5% 9% Property 28% 10% March 2024 42% Tier - 3 >15 to 20L 50% AUM Profile City 12% ATS1 Home Rs. 10 Mix Mix Tier Loans Lacs 58% Tier - 2 >5 to 10L Self Employed 40% 40% >10 to 15L 72% 26% >20 to 25L >25L ≤5L Loan
Slide 20: Tech, Credit & Risk
Tech, Credit & Risk India Shelter Finance Corporation Limited 20
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 92% Digital Collections 99% E-Nach Mandates 98% E-Signing Customer Credit Collateral Collections Custom
Slide 23: Technology Driven Company with Scalable Operating Model
Technology Driven Company with Scalable Operating Model Strong Tech Architecture across Processes Multiple Digital Assets Digital Loan Approval Cloud Based Platform and Paperless Approach Customer 360 view Data Capture Extensive database with 100+ data points on customer and collateral profiles to e
Slide 24: 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 25: Financials
Financials India Shelter Finance Corporation Limited 25
Slide 26: Strong Liability Franchise
Strong Liability Franchise Diversified Funding Profile and Strong Lending Relationships Lender Base 7+ years Borrowing Mix (Q4FY24), % Avg. Tenure of Borrowings 35 Lender Relationships PTC NCD Key Lenders 2% ECB 1% FI & Others 6% MF, NBFC, NHB 15% Term Private Banks Loans by Banks & FI DA 56% 22% Pu
Slide 27: Strong Balance Sheet
Strong Balance Sheet Consistent Rating Upgrades Strong ALM Surplus Outflow Inflow Cumulative ALM Profile, March’24, % 2024 AA- (Stable)* Rs. Crs 262 <3 months 207 468 2023 A+ (Positive) 452 <6 months 222 674 2022 A+ (Stable) 839 <1 Year 251 1,090 2019 A (Stable) 2,175 <3 Year 214 2,389 2018 A- (Posi
Slide 28: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (Rs. Cr.) As on March’24 Total Available Cash & Cash Equivalents1 451 Liquidity of Un-availed Sanctions from Banks/FI 759 INR 1,210 Cr Total Liquidity Position 1,210 Particulars (Rs. Cr.) Q1FY25 Q2FY25 Q3FY25 Q4FY25 Opening Liquidity 1,210 1,253 1,300 1,336
Slide 29: Profit & Loss Statement - Quarterly
Profit & Loss Statement - Quarterly Particulars (Rs. Cr.) Q4FY24 Q4FY23 YoY Q3FY24 QoQ Interest Income on loans 190.3 131.6 45% 169.3 12% Net Gain on Direct Assignments 17.0 20.9 -19% 19.9 -15% Other Income 37.2 24.6 51% 29.2 27% Total Income 244.4 177.2 38% 218.4 12% Finance Cost 74.2 55.5 34% 73.6
Slide 30: Profit & Loss Statement – Annual
Profit & Loss Statement – Annual Particulars (Rs. Cr.) FY24 FY23 YoY FY22 Interest Income on loans 660.6 476.7 39% 353.2 Net Gain on Direct Assignments 79.1 43.9 80% 49.7 Other Income 121.7 85.7 42% 56.9 Total Income 861.4 606.2 42% 459.8 Finance Cost 287.0 208.7 38% 147.4 Net Total Income 574.4 397
Slide 31: Balance Sheet
Balance Sheet Particulars (Rs. Cr.) Mar-24 Mar-23 Dec-23 Mar-22 Sources of Funds Share Capital 53.5 43.8 53.5 43.7 Reserves & Surplus 2,245.1 1,196.8 2,155.3 1,032.4 Borrowings 3,415.1 2,988.9 3,512.7 2,070.0 Other liabilities & provisions 80.4 66.2 86.7 75.1 Total 5,794.2 4,295.6 5,808.3 3,221.2 Ap
Slide 32: ECL Provisions Summary
ECL Provisions Summary Particulars Mar-24 Dec-23 Mar-23 Gross Stage 3 50.1 57.0 41.9 % Portfolio in Stage 3 1.0% 1.2% 1.1% ECL Provision Stage 3 12.5 14.9 10.9 Net Stage 3 37.7 42.1 31.0 % Portfolio in Stage 3 0.7% 0.9% 0.8% Provision Coverage Ratio (PCR) – Stage 3 25.0% 26.1% 26.0% Gross Stage 2 11
Slide 33: ROE Tree & Key Ratios
ROE Tree & Key Ratios Particulars (Rs. Crs) Q4FY24 Q4FY23 Q3FY24 FY24 FY23 Total Revenue to Average Total Assets 16.9% 17.1% 16.5% 17.1% 16.1% Finance cost to Average Total Assets 5.1% 5.4% 5.6% 5.7% 5.6% Spread to Average Total Assets 11.7% 11.8% 11.0% 11.4% 10.6% Operating Expenses to Average Tota
Slide 34: Financial Snapshot – 10 years
Financial Snapshot – 10 years Particulars FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 CAGR (%) 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 Emplo
Slide 35: 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 36: ESG
ESG India Shelter Finance Corporation Limited 36
Slide 37: 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) 72% 90% Samartha
Slide 38: 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 39: Strong Governance Structure
Strong Governance Structure Strong corporate governance framework in place for effective risk management Board of Directors Board Level Committees Risk Nomination & Top-tier Corporate Management Committee Audit Committee IT Strategy Committee Remuneration Committee CSR committee Governance: Manageme
Slide 40: Awards & Accolades
Awards & Accolades Awards won in 2023/24 JAN GRIHA CERTIFICATION TOP 50 INDIA'S BEST GREAT PLACE TO WORK ON WORKPLACES IN BFSI 2024 CERTIFIED GREEN HOME INITIATIVES 40
Slide 41: 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 42: 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 43: Thank You
Thank You For further information, please contact: Rahul Rajagopalan Head – Investor Relations investorrelations@indiashelter.in
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