Iifl Finance Limited · NSE:IIFL
Iifl Finance — Q2 FY2023 Earnings Presentation
56 slides from Iifl Finance's earnings presentation, Oct 26, 2022
Slide 1: Exchange cover letter: press release and presentation on results
IIFL FINANCE October 26, 2022 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 40
Slide 2: IIFL Finance Q2FY23 profits at Rs. 397 Crore, up 36% y-o-y
IIFL FINANCE IIFL Finance Limited Press Release For immediate publication Mumbai, India October 26, 2022 IIFL Finance Q2FY23 Results update IIFL Finance Q2FY23 profits at Rs. 397 Crore, up 36% y-o-y. For the quarter ended September 30, 2022, the Company reported Total comprehensive income (TCI) of R
Slide 3: Financial performance review and business segment review
IIFL FINANCE Mr. Nirmal Jain, Managing Director, IIFL Finance Ltd., remarked on the financial results: “We are pleased to report another quarter of healthy growth. All our core businesses have delivered robust operating performance. The government and central bank continue their effort to drive fina
Slide 4: Microfinance, business loans, liquidity position and ADIA investment
IIFL FINANCE Microfinance: The microfinance loan AUM stood at Rs. 6,724 Cr, up 49% y-o-y and 7% q-o-q, as at September 30, 2022. The microfinance customer base stood at 18.7 lakh customers. Business loans: Business loan AUM grew by 14% y-o-y to Rs. 7,985. Secured business loan AUM grew by 11% y-o-y
Slide 5: About IIFL
IIFL FINANCE 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 busi
Slide 6: Performance review Q2FY23 and H1FY23
IIFL FINANCE Performance review Quarter ended September 30, 2022 (Q2FY23 and H1FY23) Bloomberg: IIFL IN IIFL Finance Limited October 26, 2022
Slide 7: Agenda
IIFL FINANCE Financial Performance Q2FY23 and H1FY23 3-14 - Highlights 3 - Results 4-8 - Financial trends 9-11 - Asset Quality 12 - Liquidity 13-14 Business Segment Overview 16-24 Corporate, Strategy and Others 26-35 Financial Performance of Individual Group Entities 37-50 2
Slide 8: Quarterly Results (Consolidated)
Quarterly Results (Consolidated) IIFL FINANCE Q2FY23 PAT ₹397 Crore (up 36% yoy); RoE at 20.4% Pre-Provision Operating Profit at ₹685 Cr; Loan AUM at ₹55,302 Cr; up 25% yoy up 23% yoy .iit® Profit Growth Profit after Tax1 at ₹397 Cr; up 36% yoy Loan asset Loan Disbursements (Core products) at ₹11,99
Slide 9: Quarterly Results (Consolidated)
Quarterly Results (Consolidated) I IFL FINANCE Q2FY23 net profit up 36% yoy, income up 31% yoy ₹ Cr Q2FY23 Q2FY22 Y-o-Y Q1FY23 Q-o-Q Interest income1 1,520.3 1,342.3 13% 1,426.5 7% Interest expense (775.8) (744.1) 4% (776.0) (0%) Net interest income 744.5 598.2 24% 650.5 14% Non-fund based income 49
Slide 10: Quarterly Income Analysis (Consolidated)
Quarterly Income Analysis (Consolidated) IIFL FINANCE Non fund income covers ~90% of the operating cost ₹ Cr Q2FY23 Q2FY22 Y-o-Y Q1FY23 Q-o-Q Loan book using risk capital 33,582 28,874 16% 32,386 4% Securitized book 1,580 3,987 (60%) 1,957 (19%) Loan Book (Ind AS Balance sheet) 35,162 32,861 7% 34,3
Slide 11: Half yearly Results (Consolidated)
Half yearly Results (Consolidated) I IFL FINANCE H1FY23 net profit up 30% yoy, income up 37% yoy ₹ Cr H1FY23 H1FY22 Y-o-Y FY22 Interest income1 2,946.9 2,587.3 14% 5,422.7 Interest expense (1,551.8) (1,445.0) 7% (2,991.0) Net interest income 1,395.0 1,142.3 22% 2,431.7 Non-fund based income 1,026.5
Slide 12: Half yearly Income Analysis (Consolidated)
Half yearly Income Analysis (Consolidated) I IFL FINANCE Non fund income covers ~96% of the operating cost ₹ Cr H1FY23 H1FY22 Y-o-Y FY22 Loan book using risk capital 33,582 28,874 16% 31,669 Securitized book 1,580 3,987 (60%) 2,397 Loan Book (Ind AS Balance sheet) 35,162 32,861 7% 34,067 Assigned as
Slide 13: Consolidated Balance Sheet as at September 30, 2022
Consolidated Balance Sheet as at September 30, 2022 I IFL FINANCE Total Equity at ₹9,480 Cr ASSETS (₹ Cr) Q2FY23 LIABILITIES AND EQUITY (₹ Cr) Q2FY23 1 Financial Assets 1 Financial Liabilities (a) Cash and Bank Balances 7,889 (a) Payables 249 (b) Receivables 54 (b) Borrowings (c) Loan Assets 34,969
Slide 14: Home loan & gold loan account for two third of Loan AUM
Home loan & gold loan account for two third of Loan AUM I IFL FINANCE 95% of loan portfolio is small ticket retail Portfolio Q2FY23 % AUM Share AUM (₹ Cr) Y-o-Y Growth (%) Il Q-o-Q Growth (%) GNPA% NNPA% Portfolio Yield% average Ticket Size (₹ Lakhs) Home Loans 36% 19,681 25% 6% 2.4% 1.3% 10.6% 16.2
Slide 15: Long term financial trends for the last years
Long term financial trends for the last 5 years I IFL FINANCE Robust financial performance and growth Loan AUM (₹ Cr) Profit after tax (pre NCI) (₹ Cr) RoA and RoE (%) Off Book (assignment, securitisation & colending) Half-yearly RoA • RoE Half yearly Annualized On Book 55,302 II 51,210 1,188 20.6%
Slide 16: Key ratios trends for the last years
Key ratios trends for the last 5 years I IFL FINANCE Income, return, asset & leverage ratios show healthy trends Non Fund based Income to Total Income (%) Operating Expenses to Average AUM (%) PPOP to Average AUM (%) 22% 22% 35% 34% 38% 42% 3.3% 3.6% [ i Rapid branch expansion 2.9% 3.5% 4.1% 4.3% 3.
Slide 17: Long term asset quality trends
Long term asset quality trends IIFL FINANCE Non performing assets under control through cycles Gross NPA (%) Net NPA (%) 3.15% I I II II 2.42% 1.83% 2.04% 1.98% 1.62% 1.74% 1.22% 0.89% 1IFY18 FY19 FY20 FY21 FY22 H1FY23 0.58% FY18 0.49% FY19 0.82% FY20 FY21 FY22 H1FY23 Details of Provision: 0-30 dpd
Slide 18: Well diversified sources of funding
Well diversified sources of funding IIFL FINANCE Resource profile is well diversified, with non dependence on short term funding Bonds/NCDs investors split (%) Outstanding borrowing (₹ Cr) 24,539 26,141 25,734 28,426 33,340 33,960 Public, 30% Others, 22% CBLO r 2% / Foreign Bank, 11% Refinance Inves
Slide 19: Conservative ALM & well covered debt repayment schedule
Our conservative ALM & well covered debt repayment schedule I IFL FINANCE Provide resilience during crisis to not only meet obligations but sustain growth as well Fund raising Credit Rating • IIFL Finance: AA/Stable by CRISIL, ICRA, CARE During the quarter we have raised ₹3,805 Cr of and A1+ by CRIS
Slide 20: Agenda
IIFL FINANCE Financial Performance Q2FY23 and H1FY23 3-14 - Highlights 3 - Results 4-8 - Financial trends 9-11 - Asset Quality 12 - Liquidity 13-14 Business Segment Overview 16-24 Corporate, Strategy and Others 26-35 Financial Performance of Individual Group Entities 37-50 15
Slide 21: Home loans – product overview
Home loans – product overview I IFL FINANCE Small loans for affordable homes, in small towns and suburbs of metros Primary focus on affordable and non-metro Distribution of AUM as at September 30,2022 (₹ Cr) customers. Uttar Pradesh, Uttarakhand Andhra Pradesh, Telangana 74% of home loans under
Slide 22: Home loans – financial overview
Home loans – financial overview IIFL FINANCE Improving yields and asset quality Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 10.6% 2,132 10.3% 10.3% 1,951 II 1,814 10.0% 1,596 1,591 9.8% 9.6% FY18 i FY19 I FY20 FY21 FY22 H1FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 GNPA (%) Salaried and Self Empl
Slide 23: Business loans – product overview
Business loans – product overview IFL FINANCE Focus on digital lending to MSME sector and individuals For business loans backed by cash flows Distribution of AUM as at September 30,2022 (₹ Cr) Focus on balancing prudent credit underwriting with Sikkim & 7 N.E.States, 1% Bihar, Jharkhand , 1% ins
Slide 24: Business loans – financial overview
Business loans – financial overview I IFL FINANCE Improving yields and asset quality; disbursals turning granular Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 1,385 1,395 17.6% 1,218 970 16.1% dII 15.6% 15.6% 15.9% 14.9% 526 FY18 FY19 FY20 FY21 FY22 H1FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 GN
Slide 25: Gold loans – product overview
Gold loans – product overview I IFL FINANCE Secured low-risk short term loans to neighborhood customers In-house loan origination through growing network Distribution of AUM as at September 30,2022 (₹ Cr) of branches and increasing use of digital technology Andhra Pradesh, 5% West Bengal, 7% Uttar
Slide 26: Gold loans – financial overview
Gold loans – financial overview I IFL FINANCE Stable yields and asset quality Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 7,997 19.0% 18.1% 7,135 17.8% 18.0% 6,811 6,462 17.5% 17.5% 5,115 FY18 FY19 dFY20 FY21 FY22 H1FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 GNPA (%) Onboarding Average Ticket Si
Slide 27: Microfinance loans – product overview
Microfinance loans – product overview IFL FINANCE Focus on self employed, low income women groups for micro business Small-ticket loans for purpose of income generation Distribution of AUM as at September 30,2022 (₹ Cr) activities Assam & Tripura Target segment is rural and semi-urban self- West
Slide 28: Microfinance loans – financial overview
Microfinance loans – financial overview I IFL FINANCE Improving yields and asset quality; disbursals picking up Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 24.8% 2,516 23.4% 22.6% 22.3% 21.9% 22.4% 1,834 1,628 1,374 1,073 FY18 FY19 dFY20 FY21 FY22 H1FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 GNP
Slide 29: Construction Real Estate (CRE) & Capital Market
Construction Real Estate (CRE) & Capital Market I IFL FINANCE 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 5,055
Slide 30: Agenda
IIFL FINANCE Financial Performance Q2FY23 and H1FY23 3-14 - Highlights 3 - Results 4-8 - Financial trends 9-11 - Asset Quality 12 - Liquidity 13-14 Business Segment Overview 16-24 Corporate, Strategy and Others 26-35 Financial Performance of Individual Group Entities 37-50 25
Slide 31: Uniquely placed to dominate non banking retail lending
Uniquely placed to dominate non banking retail lending I IFL FINANCE 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 3,700+ In
Slide 32: Recent partnerships with banks for co-lending and co-origination
Our recent partnerships with banks for co-lending, I I FL FINANCE co-origination and business correspondence.. Existing Tie-ups New Tie-ups (Q2FY23) I f; to Union Bank SHIVALIK Standard IIC4 kqer 4-o SlaWank Small Flame Bank Chartered U DBS Canara Bank SOUTH INDIAN Bank 1(17‘13) ICanir Vysya Bank LA
Slide 33: Recent new initiatives continue to perform well
Our recent new initiatives continues to perform well I IFL FINANCE Gold Loan at Home a. Gold loan at customer’s doorstep initiative targets branchless expansion of Gold Loan business. b. The initiative started a year ago, saw significant traction with disbursements. c. We have proprietary technolo
Slide 34: Distinguished Board of Directors
Distinguished Board of Directors IIFL FINANCE 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., All
Slide 35: Experienced senior management team
Experienced senior management team 'IIFL FINANCE IIFL Finance IIFL Home Finance IIFL Samasta Finance N Venkatesh Rajesh Rajak Monu Ratra Chief Executive Officer Chief Financial Officer Chief Executive Officer Strategic leadership Chartered Accountant Qualified architect and MBA Program in microfinan
Slide 36: ESG - Environment
ESG - Environment IIFL FINANCE Supporting a sustainable economy through focus on environment Adopting environmentally conscious solutions in our business initiatives as well Pioneered Green Building concept in IIFL has signed a US$ 68 million partnership with housing developers loan with Asian Devel
Slide 37: ESG - Social
ESG - Social IIFL FINANCE 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. r 69% of gold loan disbursed are of less than ₹ 50,000 value 76% of the Unsecure
Slide 38: ESG - Social: CSR projects
ESG - Social IFL FINANCE CSR projects continue amid covid with creative use of technology Donation of Sewing Machines - Rajasthan Development of Botanical Garden (Medicinal) – The Institute of Science Mumbai With a view to promote skilled training to women so Maa Bari program is initiated to promote
Slide 39: ESG - Governance
ESG - Governance IIFL FINANCE 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 Corporate policies and guidelines: Board Diversity practices, ethical sta
Slide 40: Brand and credibility recognized at various forums
IIFL’s brand and credibility recognized at various forums IFL FINANCE IIFL Finance was received ‘Most IIFL Finance received ‘Customer IIFL Finance was received ‘Quick loan innovative Fintech Product Award’ for Services Excellence Award’ at the Asia Approval Award’ for IIFL Instant Loan at What’s app
Slide 41: Agenda
IIFL FINANCE Financial Performance Q2FY23 and H1FY23 3-14 - Highlights 3 - Results 4-8 - Financial trends 9-11 - Asset Quality 12 - Liquidity 13-14 Business Segment Overview 16-24 Corporate, Strategy and Others 26-35 Financial Performance of Individual Group Entities 37-50 36
Slide 42: Loan asset split based on Group entity booking the same
Loan asset split based on Group entity booking the same I IFL FINANCE IIFL Finance is listed holding NBFC with 2 subsidiaries for housing & Micro-finance IIFL Finance IIFL Home IIFL Samasta IIFL Finance As on Q2FY23 (₹ Cr) Standalone Finance Finance Consolidated Home Loans - 19,681 - 19,681 Gold Loa
Slide 43: Reconciliation of reported consolidated results with Group entities
Reconciliation of reported consolidated results with Group entities I IFL FINANCE Half yearly results for the period ended September 31, 2022 IIFL Finance IIFL Home IIFL Samasta Intergroup IIFL Finance ₹ Cr Standalone Finance Finance adjustments Consolidated Interest income 1,359.6 939.8 647.5 (0.1)
Slide 44: IIFL Finance (Standalone): Quarterly Results
IIFL Finance (Standalone): Quarterly Results I IFL FINANCE ₹ Cr Q2FY23 Q2FY22 Y-o-Y Q1FY23 Q-o-Q Interest income 688.2 809.3 (15%) 671.4 3% Interest expense (353.5) (409.1) (14%) (367.9) (4%) Net interest income 334.8 400.2 (16%) 303.5 10% Non-fund based income 334.8 198.2 69% 295.0 13% Total income
Slide 45: IIFL Finance (Standalone): Half yearly Results
IIFL Finance (Standalone): Half yearly Results I IFL FINANCE ₹ Cr H1FY23 H1FY22 Y-o-Y FY22 Interest income 1,359.6 1,518.2 (10%) 3,067.2 Interest expense (721.4) (811.4) (11%) (1,615.6) Net interest income 638.2 706.8 (10%) 1,451.6 Non-fund based income 629.8 304.4 107% 950.0 Total income 1,268.0 1,
Slide 46: IIFL Finance (Standalone): Financial trends
IIFL Finance (Standalone): Financial trends I IFL FINANCE Robust financial performance and growth Loan AUM (₹ Cr) Profit after tax (PAT) (₹ Cr) RoA and RoE (%) Half-yearly Half yearly • Off Book (assignment, securitisation & colending) Annualized RoA RoE • On Book 745 18.5% 16.6% 22,317 21,109 19,19
Slide 47: IIFL Finance (Standalone): Key ratios trends
IIFL Finance (Standalone): Key ratios trends I IFL FINANCE Income, return, asset & leverage ratios Non Fund based Income to Total Income (%) Operating Expenses to Average AUM (%) PPOP to Average AUM (%) Branch expansion 7.3% 50% 40% 5.8% 5.6% 5.7% 5.7% 31% 30% 4.4% 5.3% 4.8% 4.3% * 4.2% 11% 7% FY18
Slide 48: IIFL Home Finance: Quarterly Results
IIFL Home Finance: Quarterly Results I IFL FINANCE ₹ Cr Q2FY23 Q2FY22 Y-o-Y Q1FY23 Q-o-Q Interest income 504.7 414.8 22% 435.1 16% Interest expense (290.7) (266.6) 9% (280.2) 4% Net interest income 214.0 148.2 44% 154.9 38% Non-fund based income 111.8 142.6 (22%) 204.1 (45%) Total income 325.8 290.8
Slide 49: IIFL Home Finance: Half yearly Results
IIFL Home Finance: Half yearly Results I IFL FINANCE ₹ Cr H1FY23 H1FY22 Y-o-Y FY22 Interest income Interest expense Net interest income Non-fund based income 939.8 (570.9) 368.9 317.1 823.8 (521.1) 302.7 240.0 I 14% 10% 22% 32% 1,657.3 (1,062.9) 594.3 477.6 Total income 686.0 542.8 26% 1,148.6 Opera
Slide 50: Home Finance: Financial trends
IIFL Home Finance: Financial trends IIFL FINANCE Robust financial performance and growth Loan AUM (₹ Cr) Profit after tax (PAT) (₹ Cr) RoA and RoE (%) Half-yearly Half yearly • Off Book (assignment, securitisation & colending) Annualized RoA RoE • On Book 25,718 581 24.4% i 22.5% 21.3% 23,617 21.5%
Slide 51: Home Finance: Key ratios trends
IIFL Home Finance: Key ratios trends IIFL FINANCE Income, return, asset & leverage ratios Non Fund based Income to Total Income (%) Operating Expenses to Average AUM (%) PPOP to Average AUM (%) Branch 4.2% 4.2% 45% expansion 3.9% 4 42% 41% 1.8% 1.7% 36% 37% 3.2% 1.4% 1.5% 1.2% 2.8% 28% 1.2% 2.4% FY1
Slide 52: Samasta Finance: Quarterly Results
IIFL Samasta Finance: Quarterly Results I IFL FINANCE Cr Q2FY23 Q2FY22 Y-o-Y Q1FY23 Q-o-Q Interest income 336.6 216.7 55% 310.9 8% Interest expense (132.6) (90.1) 47% (128.0) 4% Net interest income 204.0 126.5 61% 182.9 12% Non-fund based income 32.4 4.8 581% 53.1 (39%) Total income 236.4 131.3 80%
Slide 53: IIFL Samasta Finance: Half yearly Results
IIFL Samasta Finance : Half yearly Results I IFL FINANCE z Cr H1FY23 H1FY22 Y-o-Y FY22 Interest income 647.5 429.9 51% 946.0 Interest expense (260.6) (179.4) 45% (395.1) Net interest income 386.9 250.5 54% 550.9 Non-fund based income 85.5 10.8 689% 57.7 Total income 472.4 261.3 81% 608.6 Operating e
Slide 54: Samasta Finance: Financial trends
IIFL Samasta Finance : Financial trends I IFL FINANCE Robust financial performance and growth Loan AUM (₹ Cr) Profit after tax (PAT) (₹ Cr) RoA and RoE (%) Half-yearly Half yearly • Off Book (assignment, securitisation & colending) Annualized RoA RoE • On Book 107 7,267 29.2% 29.4% 6,484 4,796 66 I
Slide 55: Samasta Finance: Key ratios trends
IIFL Samasta Finance : Key ratios trends IIFL FINANCE Income, return, asset & leverage ratios Non Fund based Income to Total Income (%) Operating Expenses to Average AUM (%) PPOP to Average AUM (%) 44% 9.4% 7.1% 6.6% 8.0% 6.1% 6.1% 7.1% 6.9% 7.1% 5.4% ♦ 5.1% 21% 5.5% 12% 10% 6% 3% FY18 FY19 FY20 FY2
Slide 56: Thank you
IIFL FINANCE Thank you Published in October 2022 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,