Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — Q3 FY22 Earnings Presentation
55 slides from Sammaan Capital's earnings presentation, Feb 16, 2022
Slide 1: Investor Presentation
Indiabulls HOUSING FINANCE Investor Presentation
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. Asset Quality & High
Slide 3: Business Update
Business Update Key Financial Highlights: Particulars Q3 FY21-22 Q2 FY21-22 Q1 FY21-22 Q4 FY20-21 Loan Book 60,979 64,062 65,438 66,047 Borrowings 55,361 58,608 60,399 65,343 CRAR 31.2% 31.2% 30.9% 30.7% Tier 1 25.7% 24.9% 24.3% 24.0% Net Gearing 2.8x 3.0x 3.1x 3.4x PBT 424 390 369 357 PAT 303 286 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 ₹ 1,573 Cr disbur
Slide 5: Scalable Retail Asset-Light Business Model
Scalable Retail Asset-Light Business Model Enterprise Value Driven by Disbursals, RoA, Customer Franchise ₹ 1,573 Cr disbursed through co-lending in Q3FY22 with seven partner institutions Profile of Co-lending Loans Disbursed in Total Home Loans LAP Q3FY22 Disbursal Amount [₹ Cr] 1,573 1,134 440 Cou
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. Filing with SEBI in Q4FY22. Launch in Q1FY23, subjec
Slide 7: Institutionalization of the Company
Institutionalization of the Company: 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 Chairman of the board from
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 FY18 FY19 FY20 FY21 9M FY22 Balance Sheet 131,903 130,104 102,872 93,239 82,285 Net Worth 13,424 18,284 15,538 16,134 16,405 AUM 122,578 120,525
Slide 9: Asset Quality & High Provision Levels
Asset Quality & High Provision Levels Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY21 Gross NPA 2,350 2,074 2,268 2,147 Gross NPA % 3.18% 2.69% 2.86% 2.66% Net NPA 1,334 1,179 1,227 1,285 Net NPA % 1.80% 1.53% 1.55% 1.59% Stage 3 Provisions/ Gross NPA 43% 43% 46% 40% Total Provisions/ Gross NPA 118% 152% 159% 115%
Slide 10: Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet
Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet 75,587 75,587 68,221 64,477 56,354 57,474 58,798 46,081 44,159 33,356 23,491 16,660 12,908 13,027 10,251 11,370 9,485 7,001 2,791 142 285 988 1d-14d 15d-1m 1m-2m 2m-3m 3m-6m 6m-1yr 1yr-3Yr 3Yr-5Yr 5Yr-7yr 7Yr-10yr 10Y
Slide 11: Access to Funding
Access to Funding In 9MFY22, IBH has raised the following monies: Amount Term Loans of over 3 years’ tenure ₹ 4,080 Cr Loans of 1 to 3 years’ tenure ₹ 7,474 Cr Bonds of over 3 years’ tenure ₹ 157 Cr Bonds of 1 to 3 years’ tenure ₹ 635 Cr Loan Sell Downs/ Structured Refinance ₹ 4,614 Cr Equity/ Quasi
Slide 12: Sustainable Bond Issuance
Sustainable Bond Issuance • IBH will issue ₹ 5,000 Cr of sustainable bonds in CY 2022, in domestic as well as international markets • Sustainable Financing Framework developed with ESG Ratings firm Sustainalytics Supports IBH’s sustainability efforts The framework is aligned with the ICMA Sustai
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^ • Share
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 15% 11% Loan Book Cash & Cash Equivalents Other Assets 74% 17
Slide 18: Asset Composition
Asset Composition 15% 26% 59% Retail Mortgage Loans Commercial Real Estate Loans Business Loans Particulars Q3 FY22 Yield on Loans 10.6% Cost of Borrowings 8.1% Book Spread 2.5% • Borrowing rates moderating: Reduction in borrowing cost by 100 bps by lead bank in December 2021, will result in 50 bps
Slide 19: Liabilities Profile
Indiabulls HOUSING FINANCE Liabilities Profile 19
Slide 20: Liabilities
Liabilities 20% 5% 75% Shareholders' Funds Borrowings Other Liabilities 20
Slide 21: Funding Mix
Funding Mix 5% 4% 3% 23% 23% 25% 34% 32% 31% 38% 41% 41% Dec-19 Dec-20 Dec-21 Non-Convertible Debentures Bank Loans Assignment/ Securitization/ Co-Lending 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 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Cash & Investments 8,974 8,974 10,117 9,659 10,996 10,464 11,058 10,656 8,031 Customer Repayments 60,979 3,934 3,752 3,539 3,292 2,954 2,897 2,565 2,831 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 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Cash & Investments 9,122 9,199 10,260 9,680 10,804 11,404 11,064 11,438 Customer Repayments 2,498 2,327 2,271 2,325 2,049 1,768 1,764 1,670 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 Q4FY26 Q1FY27 Q2FY27 Q3FY27 Q4FY27 Q1FY28 Q2FY28 Q3FY28 Cash & Investments 11,860 12,778 11,831 10,314 10,273 12,293 12,572 10,813 Customer Repayments 2,046 1,016 1,163 720 2,325 823 869 1,479 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 Q4FY28 Q1FY29 Q2FY29 Q3FY29 Q4FY29 Q1FY30 Q2FY30 Q3FY30 Cash & Investments 11,889 7,611 7,949 7,462 7,003 6,813 7,144 7,559 Customer Repayments 705 581 684 657 594 410 489 413 Non Current Assets - - - - - - - - Total Inflo
Slide 26: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q4FY30 Q1FY31 Q2FY31 Q3FY31 Q4FY31 Q1FY32 Q2FY32 Q3FY32 10+Years Cash & Investments 7,909 8,160 8,371 8,609 8,835 9,043 9,192 9,285 9,422 Customer Repayments 309 264 287 272 250 189 129 138 1,732 Non Current Assets - - - -
Slide 27: 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 28: 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 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: 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 31: Beginning of a Long Term Property Market Up-cycle
Beginning of a Long Term Property Market Up-cycle 31
Slide 32: 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 33: Growth Momentum in Residential Real Estate
Growth Momentum in Residential Real Estate Sales pick-up • Housing sales in top 8 Indian cities recorded a 51% YoY growth in CY2021 and 41% YoY growth in H2 CY20211: H2 CY2021 recorded the highest housing sales since H1 CY2016 Mumbai and Pune accounted for 41% of the total housing sales in top 8
Slide 34: Commercial Office Space Absorption
Commercial Office Space Absorption • Commercial office space absorption registered a growth of 17% in H2 of CY2021 compared to H2 of CY2020, with 25.9 million sq. ft. office space getting transacted 1 - Transaction volumes in Pune and NCR grew the most at 58% and 56% YoY respectively in H2 of CY2021
Slide 35: Static Credit Performance Analysis of LAP and HL Pools
Static Credit Performance Analysis of LAP and HL Pools 35
Slide 36: Retail Loan Book of Highest Quality
Retail Loan Book of Highest Quality Portfolio performance of all sold down pools of ₹ 71,761 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 37: Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments
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 38: Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments
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 39: Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments
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 40: LAP Pool Performance Factsheet: Experian Credit Bureau Direct Assignments
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 41: 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 42: 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 43: Corporate Social Responsibility
Corporate Social Responsibility 43
Slide 44: 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 - 64,753 patients diagnosed and treated in this
Slide 45: Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding
Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding 45
Slide 46: 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 47: 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 48: Key Financial Metrics
Key Financial Metrics FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 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% 18% 7.5% Cap
Slide 49: 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 Dec-21* Market Price 155 207 272 286 558 674 998 1,194 744 228 193 218 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 50: Shareholding Pattern
Shareholding Pattern 3.7% 9.7% 29.2% 43.2% 14.2% Founder Foreign Institutional Shareholding MFs/Banks/IFI Public Pragati Employee Welfare Trust MF: Mutual Funds; IFI: Indian Financial Institutions As on 31st Dec, 2021 50
Slide 51: Detailed Financials
Indiabulls HOUSING FINANCE Detailed Financials 51
Slide 52: Consolidated Balance Sheet
Consolidated Balance Sheet 52
Slide 53: Consolidated Income Statement
Consolidated Income Statement 53
Slide 54: 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 55: Thank you
Indiabulls HOUSING FINANCE Thank you
Indiabulls Housing Finance — Q3 FY22 Earnings Presentation on 6ix