Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — Investor Presentation (September 2021)
50 slides from Sammaan Capital's investor presentation, Sep 21, 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 Q1 FY21-22 Q1 FY20-21 Loan Book 65,438 73,129 CRAR 30.9% 27.9% Tier 1 24.3% 21.1% Net Gearing 3.1x 3.9x Net Interest Income 765 731 PAT 282 273 • Strong balance sheet with strong capital adequacy, high liquidity and robust provisioning • Quarterl
Slide 4: Performance Metrics
Performance Metrics Particulars As at June 30, 2021 CRAR 30.9% Tier I 24.3% Net Debt to Equity 3.1x Cost to Income Ratio [FY21] 12.8% Book Spread 2.6% Gross NPA 2.86% Net NPA 1.55% • Stable Net NPA at 1.55%. Provision at 3.9x of regulatory requirements. Provisions to loan book at a very healthy 5.5%
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 Q1FY22 Wholesale Book Strong sales traction in projects of wholesale borrowers. Company firmly on track to reduce wholesale Consolidation book by 33% by Mar 22 Will ad
Slide 6: Stable Asset Quality & High Provision Levels
Stable Asset Quality & High Provision Levels Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Gross NPA 2,268 2,147 2,113 2,012 2,042 Gross NPA % 2.86% 2.66% 2.44% 2.21% 2.20% Net NPA 1,227 1,285 1,267 1,487 1,517 Net NPA % 1.55% 1.59% 1.46% 1.63% 1.63% Amounts in ₹ Cr • Total provisions shored up to ₹ 3,600
Slide 7: Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet
Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet 81,159 81,159 75,464 72,354 64,817 65,070 61,732 50,053 51,161 40,580 27,068 19,323 15,334 17,969 11,817 12,415 13,285 9,150 3,407 981 60 431 1d-14d 15d-1m 1m-2m 2m-3m 3m-6m 6m-1yr 1yr-3Yr 3Yr-5Yr 5Yr-7yr 7Yr-10yr 10Y
Slide 8: Voluntary Reserve Fund for Dollar Bond Repayment
Voluntary Reserve Fund for Dollar Bond Repayment • In May 2019, IBH had issued dollar denominated bonds aggregating to USD 350 million, for a tenor of 3 years • The principal portion of these bonds is fully hedged in accordance with extant RBI guidelines. Thus, the outstanding bonds are effectively
Slide 9: Scalable Retail-focussed Asset-Light Business Model
Scalable Retail-focussed Asset-Light Business Model • As IBH is pursuing an asset-light model, and with co-lending partnerships in place, retail disbursal growth has gained momentum in FY22 • IBH has co-lending agreements with: HDFC Ltd., Central Bank of India and Yes Bank for home loans RBL Ban
Slide 10: eHome Loans: 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 11: 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 12: 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 13: 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 14: 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 15: Appendix
Indiabulls HOUSING FINANCE Appendix
Slide 16: Financial and Operational Highlights
Financial and Operational Highlights 16
Slide 17: Balance Sheet Assets
Balance Sheet Assets 12% 13% Loan Book Cash & Cash Equivalents Other Assets 75% 17
Slide 18: Asset Composition
Asset Composition 16% 26% 58% Retail Mortgage Loans Commercial Real Estate Loans Business Loans Particulars Q1 FY22 Yield on Loans 10.9% Cost of Borrowings 8.3% Book Spread 2.6% 18
Slide 19: Liabilities Profile
Indiabulls HOUSING FINANCE Liabilities Profile
Slide 20: Liabilities
Liabilities 18% 7% 75% Shareholders' Funds Borrowings Other Liabilities 20
Slide 21: Funding Mix
Funding Mix 4% 4% 5% 22% 24% 24% 35% 34% 31% 1% 38% 38% 41% Jun-19 Jun-20 Jun-21 Non-Convertible Debentures Commercial Papers Bank Loans Sell Down ECB ECB: External Commercial Borrowing 21
Slide 22: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Total Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Cash & Investments 11,419 11,419 11,927 10,174 11,386 9,099 9,999 9,012 9,808 Customer Repayments 65,438 3,915 3,989 3,973 3,772 3,530 3,254 3,033 2,922 Non Cur
Slide 23: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Cash & Investments 9,536 7,033 8,114 8,320 9,472 10,379 11,489 12,074 Customer Repayments 2,609 2,829 2,469 2,339 2,314 2,341 2,013 1,791 Non Current Assets - - - - -
Slide 24: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Q3FY27 Q4FY27 Q1FY28 Cash & Investments 11,935 12,547 13,336 14,471 13,657 12,555 12,854 14,944 Customer Repayments 1,741 1,757 1,966 841 1,040 558 2,244 638 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 Q2FY28 Q3FY28 Q4FY28 Q1FY29 Q2FY29 Q3FY29 Q4FY29 Q1FY30 Cash & Investments 15,186 13,335 14,422 10,281 10,622 10,023 9,479 9,179 Customer Repayments 625 1,346 548 537 526 525 465 267 Non Current Assets - - - - - - - - Tota
Slide 26: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q2FY30 Q3FY30 Q4FY30 Q1FY31 Q2FY31 Q3FY31 Q4FY31 Q1FY32 10+ Years Cash & Investments 9,385 9,588 9,806 9,972 10,099 10,182 10,260 10,334 10,395 Customer Repayments 260 265 210 167 119 112 105 89 1,392 Non Current Assets -
Slide 27: Product Profiles
Indiabulls HOUSING FINANCE Product Profiles 27
Slide 28: 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 29: 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 30: Affordability Level Amongst the Best Ever
Affordability Level Amongst the Best Ever • 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
Slide 31: Growth Momentum in Residential Real Estate
Growth Momentum in Residential Real Estate Sales pick-up • Housing sales in top 8 Indian cities recorded an increase of 67% YoY in H1 of CY20211 Mumbai and Pune accounted for 46% of the total housing sales in H1 of CY2021 Housing sales in Hyderabad showed the largest growth at 150% in H1 of CY20
Slide 32: Static Credit Performance Analysis of LAP and HL Pools
Static Credit Performance Analysis of LAP and HL Pools 32
Slide 33: Retail Loan Book of Highest Quality
Retail Loan Book of Highest Quality Portfolio performance of all sold down pools of ₹ 69,017 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 34: Home Loans Pool Performance Factsheet: Experian Credit Bureau
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 35: Home Loans Pool Performance Factsheet: Experian Credit Bureau
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 8 30-Nov-1
Slide 36: Home Loans Pool Performance Factsheet: Experian Credit Bureau
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 14 28-Feb-
Slide 37: LAP Pool Performance Factsheet: Experian Credit Bureau
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 38: Home Loans and LAP Pool Performance Factsheet
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 31-Dec-12 128.7 11
Slide 39: Corporate Social Responsibility
Corporate Social Responsibility 39
Slide 40: Indiabulls Foundation: Corporate Social Responsibility
Indiabulls Foundation: Corporate Social Responsibility Mahatma Awards For Excellence in Corporate Social Responsibility - 2019 Health JanSwasthya Kalyan (JSK) Vahika- Mobile Medical Vans - Free primary healthcare services provided at doorstep to the underprivileged population of urban slums with 31
Slide 41: Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding
Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding 41
Slide 42: 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 Statutory Auditor Ernst & Young [through Indian Member Firm S R Batliboi & Co.] Internal Auditor Grant Thor
Slide 43: 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 44: Key Financial Metrics
Key Financial Metrics FY FY FY FY FY FY FY FY FY FY FY 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 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% 1
Slide 45: 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 Jun-21 Market Price 155 207 272 286 558 674 998 1,194 744 228 193 269* 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 46: Shareholding Pattern
Shareholding Pattern 3.7% 21.7% 28.0% 12.9% 33.7% Founder Foreign Institutional Shareholding MFs/Banks/IFI Public Pragati Employee Welfare Trust MF: Mutual Funds; IFI: Indian Financial Institutions As on 30th Jun, 2021 46
Slide 47: Detailed Financials
Indiabulls HOUSING FINANCE Detailed Financials 47
Slide 48: Consolidated Income Statement
Consolidated Income Statement 48
Slide 49: 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 50: Thank you
Indiabulls HOUSING FINANCE Thank you
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