Iifl Finance Limited · NSE:IIFL
Iifl Finance — Q3 FY2020 Earnings Presentation
38 slides from Iifl Finance's earnings presentation, Jan 27, 2020
Slide 1: Cover letter to stock exchanges
IIFL FINANCE • v January 27, 2020 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Tower, Exchange Plaza, 5 Floor, Plot C/1, G Block, Dalai Street, Bandra - Kurla Complex, Bandra (E), Mumbai 400 001. Mumbai 4
Slide 2: Press release: Results update
India ndia Infoline Finance Limited (material subsidiary of IIFL Finance Limited) Press Release For immediate publication Mumbai, India January 27, 2020 Results update India Infoline Finance Limited Results -Profit after tax for Q3FY20 at 193 Cr (up 78% y-o-y) and 9MFY20 at 547 Cr (up 18% y-o-y) -In
Slide 3: Press release: AUM and segment commentary
India Infoline Finance had loan oan assets under management of 36,015 Cr as at December 31, 31 2019, with the home loans segment constituting 34%, business loans 23%, gold 2121% % and microfinance 8% of the total AUM. The company had a widespread presence of 2,366 branches as at the end of the quart
Slide 4: Comfortable liquidity position and awards
Comfortable liquidity position Raised ₹2,721 Cr through term loans and NCDs from banks, development institutions, insurance companies etc. Loans of 2,381 Cr we were securitized/assigned. Outstanding NHB refinance of 960 Cr was repriced downward by around 2%.. Committed credit lines from banks and in
Slide 5: About IIFL
About IIFL IIFL Finance Limited (Erstwhile “IIFL Holdings Limited”) (Bloomberg Code: IIFL IN, NSE: IIFL, BSE: IIFL) 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 was engaged in the busines
Slide 6: Quarterly Performance Review
Quarterly Performance Review For the quarter ended December 31, 2019 India Infoline Finance Limited Subsidiary of IIFL Finance Limited January 27, 2020 1
Slide 7: Key highlights
Key highlights Liquidity for well managed NBFCs has improved significantly. We raised long-term loans to the tune of `2,721 Cr, as against `403 Cr in Q1 and `1,723 Cr in Q2. Our exposure to commercial paper is now zero. Besides cash, bank & equivalent balance of `3,340 Cr, at quarter end, we have un
Slide 8: Performance Overview
I: Performance Overview (i) Q3FY20 Results & Business Overview 4 (ii) Product Segments 21 II: Awards and CSR 31 30 30 3
Slide 9: India Infoline Finance – Consolidated results (as per IND AS)
India Infoline Finance – Consolidated results (as per IND AS) Quarter ended December 31, 2019 (NBFC, HFC and MFI) ` Cr Q3FY20 Q3FY19 Y-o-Y Q2FY20 Q-o-Q 9MFY20 9MFY19 Y-oY Loan book 25,901 25,422 2% 24,907 4% 25,901 25,422 2% Assigned assets 10,114 7,072 43% 10,100 0% 10,114 7,072 43% Assets under ma
Slide 10: India Infoline Finance – Consolidated Balance Sheet
India Infoline Finance – Consolidated Balance Sheet Quarter ended December 2019 (NBFC, HFC and MFI) As at As at Assets (` Cr) Dec 31 2019 Liabilities and Equity (` Cr) Dec 31 2019 Unaudited Unaudited 1 Financial Assets 1 Financial Liabilities (a) Cash and Bank Balances 3,340 (a) Payables 102 (b) Rec
Slide 11: Top-tier NBFC in India
Top-tier NBFC in India Company snapshot ₹ 36,015 Cr 87% Retail 2,366 18,309 Assets under Management 13% Wholesale Branches Employees 2.3%* 17.9% / 21.4% 2.3% / 1.0% 95% Return on Assets Tier 1 / Total Capital Adequacy Gross NPAs / Net NPAs Provision coverage of GNPA and 16.3%* Return on Equity Uniqu
Slide 12: Diversified and granular asset portfolio
I. Diversified and granular asset portfolio - diversified granular retail loans are 87% of loan assets Diversified portfolio disperses exposure and balances cyclical vagaries AUM 3,289 9,867 16,176 22,281 34,904 36,015 (₹ Cr) 4% 1% 1% 7% 6% 10% 8% 8% Microfinance 14% 14% 13% 20% Commercial vehicle f
Slide 13: Strong asset quality maintained through cycles
II. Strong asset quality maintained through cycles…. Gross NPA (%) Net NPA (%) ● GNPA as at 9MFY20, was 2.3% and NNPA 180 150 120 90 DPD 90 180 150 120 90 DPD 90 DPD DPD DPD DPD DPD DPD DPD DPD was 1.0% ● Under Ind AS, provision 2.27% coverage (incl. standard 1.95% 1.82% 1.71% 0.98% assets provision
Slide 14: …and across products
II. …and across products Credit quality has been steady across key product segments Core growth segments Synergistic segments Home loans Business loans Developer & Construction finance Gross NPAs (%) Gross NPAs (%) Gross NPAs (%) 4.4% 1.4% 3.8% 2.9% 0.8% 0.8% 2.5% 2.4% 0.7% 0.7% 2.1% 2.2% 1.7% 0.6%
Slide 15: Robust financial performance
III. Robust financial performance Cost of Funds (%) NIM (%) ● Average cost of borrowing fell by 9 bps NIM on B/S assets Assignment gain q-o-q and rose by 39 bps y-o-y 11.1% 8.2% 10.2% 7.1% 7.2% 9.4% 9.4% 6.5% 6.3% 8.9% ● NIM for 9MFY20 stood 8.4% 6.2% 0.4% 0.8% 2.0% at 8.2% 5.9% 6.4% 6.2% ● Annualis
Slide 16: Well diversified funding mix
IV. Well diversified funding mix Resource profile is well diversified, with increasing share of assigned assets and bank loans Split of funding (₹ Cr) 15,420 17,230 20,176 28,665 35,002 35,280 CBLO Commercial 4% 2% 12% Paper 18% 16% 17% 30% 31% 7% Assignment 7% 24% 4% 7% 4% 7% NCD Investor Categoris
Slide 17: Comfortable liquidity position - long term funding
V. Comfortable liquidity position -availability of long term funding has improved significantly Incremental long term funding (` Cr) Term Loan / Refinance NCD 2,721 2,073 1,939 1,723 975 570 449 1,275 403 1,746 1,503 1,274 664 111 292 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 During the quarter : IIFL cont
Slide 18: Comfortable liquidity position - surplus in all buckets
V. Comfortable liquidity position -surplus in all buckets Positive ALM mismatch across all buckets Cumulative Cumulative Cumulative mismatch ₹ Cr Outflow inflow [] as a % of cumulative outflow 889% 150% 197% 169% 90% 66% 23% 18% 0% 31,484 27,049 31,484 23,887 Asset-Liability Gap (Cumulative) 22,894
Slide 19: Widespread physical network
VI. Widespread physical network 85% of branches are in Tier 2 and Tier 3 locations Wide spread network across 25 states and over 600 locations Number of branches 2,366 1,947 1,161 191 Mar'11 Mar'15 Mar'19 Dec'19 Regional split of branches 35% South North 39% East West 11% 15% Branches are strategi
Slide 20: End-to-end digitization through multiple innovations
VI. End-to-end digitization through multiple innovations SOURCING Propensity-based targeting built on machine learning model Leads generated are communicated to individual branches to generate action High conversions: More than 15x of natural response rate ONBOARDING Tablet based on-boarding
Slide 21: Cross-sell to large retail customer base
VII. Cross-sell to large retail customer base One stop shop for retail customers, building relationship for life HEALTH INSURANCE HOME LOAN MFI FIXED DEPOSIT 230k BUSINESS LOAN GOLD LOAN 13 lakhs 787k 29 lakhs LIFE INSURANCE CURRENCIES ₹ MUTUAL FUND DERIVATIVES EQUITIES FINANCIAL COMMODITIES PLANNIN
Slide 22: Strong risk management framework
VIII. Strong risk management framework Multi-level risk governance for efficient monitoring and control of product and entity level risks Scope Board of directors Authority Risk Strategy & Advisory on Risk Appetite Empower Approve large-ticket cases Risk Board Credit Information Asset Liability
Slide 23: Distinguished Board of Directors
IX. Distinguished Board of Directors India Infoline Finance– Board of Directors V. K. Chopra, Chairman Nirmal Jain, Whole-time Director Chartered Accountant and Former Whole-Time MBA from IIM Ahmedabad, rank-holder CA Member, SEBI and Cost Accountant. Worked with Unilever for Former Chairman &
Slide 24: Management team and marquee investors
IX. Management team with rich IX. Marquee investors domain experience India Infoline Finance IIFL Finance Limited Public & Chief Executive Officer Sumit Bali Others 10.3% Chief Financial Officer Prabodh Agrawal NRI 7.9% Promoters Chief Risk Officer Anujeet Kudva Domestic 29.4% Institution Compliance
Slide 25: Performance Overview: Product Segments
I: Performance Overview (i) Q3FY20 Results & Business Overview (ii) Product Segments II: Awards and CSR 30 30 20
Slide 26: Our Product Portfolio
Our Product Portfolio As on December 31, 2019 Strategic focus on segments that are core strengths and have inter se synergies AUM (₹ Cr) Target customers Unique features Salaried / Self-employed Focused on affordable and non-metro housing segments 12,354 individuals Leverages underwriting skil
Slide 27: Home loans – Product overview
Home loans – Product overview Affordable home loan Product Non-metro housing loan offering For home purchase, home renovation, home construction and plot purchase Affordable home loan: Salaried and self employed segment wherein household income is below ₹75k pm and are buying Customer proper
Slide 28: Home loans – Financial overview
Home loans – Financial overview Assets Under Management (₹ Crore) Boarding Yield (%) Self Employed Salaried 800 2,700 5,300 8,579 12,197 12,354 21% 12.0% 35% 41% 10.3% 10.1% 11.0% 48% 54% 57% 9.8% 9.3% 79% 65% 59% 52% 46% 43% FY15 FY16 FY17 FY18 FY19 9MFY20 FY15 FY16 FY17 FY18 FY19 9MFY20 Average Ti
Slide 29: Business loans – Product overview
Business loans – Product overview Product For business loans backed by cash flows offering Collateral must for loans of more than ₹ 50 Lakh; LTV up to 70% Customer MSME customers having established business performance segments Lending to manufacturing, trading and service sectors for workin
Slide 30: Business loans – Financial overview
Business loans – Financial overview Assets Under Management (₹ Crore) Boarding Yield (%) 8,117 7,965 7,361 19.6% 6,000 16.3% 5,100 14.3% 13.4% 13.5% 14.3% 4,000 FY15 FY16 FY17 FY18 FY19 9MFY20 FY15 FY16 FY17 FY18 FY19 9MFY20 Onboarding Average Ticket Size (₹ Lakhs) Gross NPAs (%) 83.0 89.0 83.0 3.1%
Slide 31: Gold loans – Product overview
Gold loans – Product overview Product Loan against jewellery provided for personal & business use; offering On-boarding LTV < 70% Customer Salaried, self-employed and MSME businesses segments 70% are repeat customers Onboarding AUM Gross/Net NPA Tenor Average Ticket Size ₹ 7,576 Crore 0.5% /
Slide 32: Gold loans – Financial overview
Gold loans – Financial overview Assets Under Management (₹ Crore) Boarding Yield (%) 7,576 6,195 21.0% 19.2% 19.2% 18.7% 18.1% 18.1% 3,885 4,037 2,914 2,910 FY15 FY16 FY17 FY18 FY19 9MFY20 FY15 FY16 FY17 FY18 FY19 9MFY20 Onboarding Average Ticket Size (₹ ‘000s) Gross NPAs (%) 58 54 53 46 48 43 0.8%
Slide 33: Microfinance – Product overview
Microfinance – Product overview Product Small-ticket loans for purpose of income generation activities offering Customer Target segment is rural and semi-urban self-employed women formed into joint liability groups segments AUM Gross/Net NPAs States Total Customers Tenor ₹ 2,973 Crore 1.3% / 0.0
Slide 34: Microfinance – Financial overview
Microfinance – Financial overview Assets Under Management (₹ Crore) Boarding Yield (%) 2,973 2,286 26.5% 25.9% 24.4% 22.6% 22.0% 21.6% 840 110 238 58 FY15 FY16 FY17 FY18 FY19 9MFY20 FY15 FY16 FY17 FY18 FY19 9MFY20 Onboarding Average Ticket Size (₹ ‘000s) Gross NPAs (%) 27 23 1.3% 21 17 15 0.8% 12 0.
Slide 35: Awards and CSR
I: Performance Overview (i) Q3FY20 Results & Business Overview (ii) Product Segments II: Awards and CSR 30 30 30
Slide 36: IIFL’s brand and credibility recognized at various forums
IIFL’s brand and credibility recognized at various forums ET Now & Broadcast IIFL Finance is now The Economic IIFL Finance Limited' has been One Times most Promising Brand in awarded the ‘Golden Peacock recognised BFSI segment Award for Risk Management’ IIFL Group for 2019 as “Disruptors" in the fin
Slide 37: Corporate Social Responsibility
Corporate Social Responsibility Self Defence Training – Sakhiyon ki Badi (Rajasthan) Sakhiyon ki Badi – Children’s week celebration IIFL Foundation directly connected with over 1000 women and Under IIFL foundation’s ‘Sakhiyon ki Badi’ initiative that aims at over 28,000 younger girls, across 9 distr
Slide 38: Thank you
Thank you Published in January 2020 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 taxa