Can Fin Homes Ltd. · NSE:CANFINHOME
Can Fin Homes — Q1 FY24 Earnings Presentation
32 slides from Can Fin Homes's earnings presentation, Aug 4, 2023
Slide 1: Submission letter to NSE for updated Investor Presentation
CAN FIN HOMES LIMITED Registered Office No. 29/1, 1st Floor, Sir M N Krishna Rao Road Near Lalbagh West Gate, Basavanagudi Bengaluru – 560 004 Tel: 080-48536192; Fax: 26565746 e-mail: compsec@canfinhomes.com Web: www.canfinhomes.com CIN – L85110KA1987PLC008699 CFHRO SE CS LODR 206/2023 August 04, 20
Slide 2: Investor Presentation Q1FY24
Investor Presentation Q1FY24 35 years of vision, passion and progress Offering home loans since 1987….. and it is just a beginning July 2023
Slide 3: Legacy, Focus, Reach, Financials, Vision
Legacy Focus Reach Financials Vision • 35 year old • To promote home • Headquartered in (Q1FY24) • To increase lending institution registered ownership across Bengaluru • Net Int Income: to new home as a deposit taking India, with a motto • Rs.285.09 Cr aspirants, enhance HFC with NHB of friendship
Slide 4: Journey of Can Fin Homes
JOURNEY OF CAN FIN HOMES ET Edge 2015 Promising 2021 Brand Award to Can Fin Homes Ltd. 1989 11 more branches Rights issue of CFHL are added, including – mCap over New Delhi 1991 Loan book crossed Rs. 1000 Cr Rs. 100 Cr Successful completion of 35 Years Loan book over 2016 100th branch at Begur, Rs.
Slide 5: Reinforce
Reinforce The Company’s reliance on the crucial parameters of growth, asset quality, profitability, liquidity, backed by good governance and due diligence will continue. The commitment to basic, underlying principles of ethics, integrity, sincerity, customer-centricity, fairness, team work and the s
Slide 6: Rebuild
Rebuild The reliance on digital platforms has increased phenomenally over the past few years. With rapidly evolving business requirements and the need to remain relevant amidst change, we are striving hard to improve our digital presence and shore up our infrastructure for accommodating agile and in
Slide 7: Reach Higher
Reach Higher In order to facilitate its upward trajectory, the Company intends to expand its sourcing channels to optimally reach its target segment of borrowers. It is proposed to introduce new products such as Green Housing which will align with Can Fin’s commitment to conduct its business in an e
Slide 8: Our Strengths
Our Strengths • Consistent support from the sponsor, Canara Bank. • Expertise gained over 35 years in housing finance. 1989 • Quick, hassle free and transparent lending process. • Regular updations to stakeholders through website. • Risk based evaluation of borrowers on merit. • Single Window concep
Slide 9: Board of Directors
Chairman (Promoter) Managing Director & CEO Director (Promoter) Director (Independent) Director (Independent) Director (Independent) Director (Independent) Director (Independent Deputy Managing Director www.canfinhomes.com 8
Slide 10: Loan process: lead generation to collection
Lead Generation Through Website, Customer Referral, Direct marketing and DSA channel. Due Diligence CKYC-UIDAI linked verification; Bank account verification through PERFIOS; Field verification of residence, employment, property in each proposal; PAN verification; Online ITR verification through web
Slide 11: Digital focus areas
In order to ensure uninterrupted services to our customers, even during challenging times like today, we leveraged various advanced digital tools and technologies. These enabled us to reach more customers, across the length and breadth of the country, improve our efficiency and tide through challeng
Slide 12: Q1 FY24 highlights
1. Disbursements during the quarter 8. Gross NPA 0.63% & Net NPA 0.34%. increased by 14% YOY. 9. The Salaried and Professional 2. Loan Book reached Rs. 32505 Cr segment constitutes 73% of the (+18% YoY) with a clientele base of outstanding loan book as on 2.46 lakh. June 23. Housing forms 89% of the
Slide 13: Year on Year (As per IND AS)
Amount Rs. in Crore Sl. Year on Year (As per IND AS) Particulars No. Jun’23 (3m) Jun’22 (3m) Growth% 1 New Approvals 2,071 1,751 18% 2 Disbursements 1,966 1,722 14% 3 Outstanding Loan Book 32,505 27,538 18% 4 Net Interest Income 285.09 250.40 14% 5 Operating Profit 247.60 215.00 15% 6 Provision for
Slide 14: Sequential (As per IND AS)
Amount Rs. in Crore Sl. Sequential (As per IND AS) Particulars No. Jun’23 (3m) Mar’23 (3m) Growth% 1 New Approvals 2,071 2,769 -25% 2 Disbursements 1,966 2,538 -23% 3 Outstanding Loan Book 32,505 31,563 3% 4 Net Interest Income 285.09 261.27 9% 5 Operating Profit 247.60 221.78 11% 6 Provision for St
Slide 15: Period Ended ratios
Amount Rs. in Crore Sl. PERIOD ENDED Particulars No. Jun’23 (3m) Jun’22 (3m) 1 Return on Avg Assets (Annualised) 2.19% 2.41% 2 Return on Avg Equity (Annualised) 19.16% 20.03% 3 Earning Per Share (Rs.) 13.78 12.18 4 Net Interest Margin (%) 3.48% 3.60% 5 Yield on Loan Portfolio (%) 9.84% 8.46% 6 Cost
Slide 16: Period Ended (Sequential)
Amount Rs. in Crore Sl. PERIOD ENDED (SEQUENTIAL) Particulars No. Jun’23 (3m) Mar’23 (3m) 1 Return on Avg Assets (Annualised) 2.19% 2.32% 2 Return on Avg Equity (Annualised) 19.16% 18.18% 3 Earning Per Share (Rs.) 13.78 12.45 4 Net Interest Margin (%) 3.48% 3.37% 5 Yield on Loan Portfolio (%) 9.84%
Slide 17: Category-wise Product-wise Distribution of Loan Book
CATEGORY-WISE PRODUCT-WISE DISTRIBUTION OF LOAN BOOK Amount Rs. in Crore Sl. Jun - 22 Sep - 22 Dec - 22 Mar - 23 Jun - 23 Particulars No. O/s Amt. O/s Amt. O/s Amt. O/s Amt. 0/s Amt 1 Salaried & Professionals i) Housing Loans 18767 19562 20256 21071 21602 ii) Top-up Personal Loans 795 852 915 960 99
Slide 18: Funding Mix Jun 2023 vs Jun 2022
Funding Mix @ Jun 2023 (as %) Funding Mix @ Jun 2022 (as %) 7% 1% 2% 11% 16% 11% 54% 54% 22% 22% Banks NHB NCD CP DEP Banks NHB NCD CP DEP Cost of borrowings at 7.32% ( 5.80% in June ‘22 & 6.34% in March ‘23) www.canfinhomes.com 17
Slide 19: Product Wise Portfolio Break up
Product Wise Portfolio Break up @ Jun 2023 (as %) HL NHL Bifurcation 89% 2% 12% 5% HL 2% Site Loan LAP Loan 79% 11% Topup Loan Other Loan HL NHL *Housing loan forms 89% of the loan book including CRE and NHL 11% www.canfinhomes.com 18
Slide 20: Profile of Customers and Average Ticket Size
Average Ticket Size Profile of Customers 73% 42% 39% 27% 13% 7% >0 to <10 >10 Lakh to >25 Lakh to >50 Lakh Salaried SENP Lakh <25 Lakh <50 Lakh Based on OS June 2023 Incremental Sanctions Q1FY24 www.canfinhomes.com 19
Slide 21: Category shareholding
4.04 SI No. Category shareholding as % 9.57 29.99 1 Promoter 29.99 10.72 2 Mutual Funds 26.16 3 Individual 19.52 4 Foreign Corporate Bodies 10.72 5 Bodies Corporate 9.57 19.52 6 Others 4.04 26.16 7 Grand Total 100.00 Promoter Mutual Funds Individual Foreign Corporate Bodies Bodies Corporate Others w
Slide 22: Spread, Cost and Yield
9.87% 9.02% 9.84% 8.21% 8.11% 7.32% 5.56% 7.51% 5.67% 6.48% 2.52% 2.54% 2.55% 2.55% 2.36% Q1 FY 22-23 Q2 FY 22-23 Q3 FY 22-23 Q4 FY 22-23 Q1 FY 23-24 Spread Cost Yield www.canfinhomes.com 21
Slide 23: Asset Classification and ECL Stages
Amount Rs. in Crore Provision as per IRAC as Provision Balance as on 30 Asset Classification ECL Stages % on 30 held as per June 2023 June 2023 ECL Model Standard Asset 1 28,551 71.72 93.39% SMA 0 1 1,806 122.51 SMA 1 2 723 70.61 SMA 2 2 548 5.97% Restructured A/c 2 672 NPA 3 205 0.63% 113.98 95.56
Slide 24: Impairment Loss Allowance
Impairment Loss Allowance as per Ind AS and RBI Resolution Framework held by the Company is as follows: ECL provision held as on June 30, 2023 ₹ in Crores For Standard Assets 142.33 For NPAs 95.56 Undisbursed Loan Commitment 3.25 Management Overlay 17.00 Provision as per Resolution 67.69 Framework 1
Slide 25: Gross NPA, Net NPA and PCR
Gross NPA & Net NPA (%) PCR (%) 54% 51% 52% 47% 0.65 0.62 0.63 43% 0.60 0.55 0.35 0.34 0.3 0.30 0.26 Q1 FY 22-23 Q2 FY 22-23 Q3 FY 22-23 Q4 FY 22-23 Q1 FY 23-24 Q1 FY 22 -23 Q2 FY 22- 23 Q3 FY 22- 23 Q4 FY 22- 23 Q1 FY 23- 24 Net NPA GNPA www.canfinhomes.com 24
Slide 26: Liquidity: Total Outflows and Inflows
12317.72 13303.76 3678.69 3759.42 1750.81 532.77 531.97 860.70 1395.48 3678.03 1976.15 3744.92 1750.08 1975.59 860.29 1395.22 1 TO 7 DAYS 8 TO 14 DAYS 15 TO 31 OVER ONE OVER 2 - 3 OVER 3-6 OVER 6 MNTH OVER 1-3 YRS DAYS (ONE MONTH TO 2 MNTHS MNTH - 1 YR MONTH) MNTH Total Outflows Total Inflows www.ca
Slide 27: Sourced by Direct and DSA
Direct SI No. Sourced by % 15% 1 Direct 14.76% 2 DSA 85.24% DSA 85% www.canfinhomes.com 26
Slide 28: Branches and Outstanding by Region
No. of Branches Outstanding (%) 120 71.54% 27 30 13.38% 11.32% 8 8 2.19% 1.57% Central East North South West Central East North South West www.canfinhomes.com 27
Slide 29: Incremental Outstanding and Disbursement by Region
Incremental Outstanding (%) Incremental Disbursement (%) 69.16% 71.54% 78.53% 77.53% 11.32% 14.70% 13.38% 11.10% 8.28% 12.12% 10.86% 2.19% 1.57% 1.99% 1.10% 6.36% 2.29% 1.73% 2.30% 1.94% Central East North South West Central East North South West Jun-22 Jun-23 Jun-22 Jun-23 www.canfinhomes.com 28
Slide 30: Process and technology initiatives
✓ Augmentation of direct proposals and Advanced Processing Facility (APF). ✓ GEO tagging of the property photos through mobile apps. ✓ Pre disbursement centralised document vetting system. ✓ Centralised Loan disbursal mechanism / Vendor payment. ✓ Centralised Reconciliations using CMS facility. www.
Slide 31: Branch offices list
(205 BRANCH OFFICES) • Punjab – Jalandhar • Odisha – Bhubaneshwar, • Telangana – Hyderabad (13 Berhampur, Jharsuguda branches), Siddipet, Warangal, • Chandigarh Karimnagar, Khammam, • Bihar – Patna Mancherial, Nizamabad • Rajasthan – Alwar, Jaipur, Mansarovar, Kota, Udaipur, • Tamilnadu – Hosur, Che
Slide 32: Thank You
THANK YOU The forward looking statements and projections, if any, contained in this presentation are predictions and involve known and unknown risks, uncertainties and other factors including the future changes or developments, the competitive environment, ability to implement the strategies and ini