Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — Q1 FY2022-23 Earnings Presentation
48 slides from Sammaan Capital's earnings presentation, Aug 10, 2022
Slide 1: Unaudited Financial Results – Q1 FY2022-23
Unaudited Financial Results – Q1 FY2022-23 August 10, 2022
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. Stable Asset Quality 06 5. Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet 07 6. Effective Oversight: Independent Chairman, Stro
Slide 3: Business Update
Business Update Key Financial Highlights: Particulars Q1 FY22-23 Q4 FY21-22 Q3 FY21-22 Q2 FY21-22 Q1 FY21-22 PAT 287 307 303 286 282 Borrowings 47,174 52,831 55,361 58,608 60,399 CRAR 34.0% 32.6% 31.2% 31.2% 30.9% Tier 1 27.5% 27.2% 25.7% 24.9% 24.3% Net Gearing 2.5x 2.6x 2.8x 3.0x 3.1x • AUM stands
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 Loans [co-lending and sell down] 3. Institutionalization of the Company Disbursal-led AUM Growth: 3%+ RoA Across Products ₹ 2,260 Cr disbur
Slide 5: Scalable Retail Asset-Light Business Model
Scalable Retail Asset-Light Business Model Enterprise Value Driven by Disbursals, RoA, Customer Franchise ₹ 2,260 Cr disbursed through co-lending and sell down in Q1FY23 Profile of Loans Disbursed in Q1FY23 Total Home Loans LAP Disbursal Amount [₹ Cr] 2,260 1,448 812 Count of Cases 11,484 5,976 5,50
Slide 6: Stable Asset Quality
Stable Asset Quality Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Gross NPA 2,159 2,318 2,350 2,074 2,268 Gross NPA % 2.96% 3.21% 3.18% 2.69% 2.86% Net NPA 1,252 1,364 1,334 1,179 1,227 Net NPA % 1.71% 1.89% 1.80% 1.53% 1.55% Stage 3 Provisions/ Gross NPA 42% 41% 43% 43% 46% Amounts in ₹ Cr • Total provi
Slide 7: Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet
Granular Asset Liability Maturity Management: Liquidity-led Fortress Balance Sheet 73,595 73,595 62,837 60,040 54,027 53,311 54,503 42,992 41,720 30,368 24,109 16,150 10,539 11,763 9,125 10,150 7,958 5,846 800 1,985 117 233 1d-14d 15d-1m 1m-2m 2m-3m 3m-6m 6m-1yr 1yr-3Yr 3Yr-5Yr 5Yr-7yr 7Yr-10yr 10Yr
Slide 8: Effective Oversight: Independent Chairman, Strong Board, Audit Committee
Effective Oversight: Independent Chairman, Institutional Investor Oversight, 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
Slide 9: Appendix
Indiabulls HOUSING FINANCE Appendix
Slide 10: Financial and Operational Highlights
Financial and Operational Highlights 10
Slide 11: Balance Sheet Assets
Balance Sheet Assets 13% 8% Loan Book Cash & Cash Equivalents Other Assets 79% 11
Slide 12: Asset Composition
Asset Composition 15% 29% 56% Retail Mortgage Loans Commercial Real Estate Loans Business Loans Particulars Q1 FY23 Yield on Loans 10.8% Cost of Borrowings 8.1% Book Spread 2.7% • Reference rates on Housing Loans and Loans Against Property raised by 140 bps and on Wholesale Loans by 160 bps • Book s
Slide 13: Liabilities Profile
Indiabulls HOUSING FINANCE Liabilities Profile 13
Slide 14: Liabilities
Liabilities 22% 4% 74% Shareholders' Funds Borrowings* Other Liabilities * Including securitization liability 14
Slide 15: Funding Mix
Funding Mix 4% 5% 4% 24% 24% 31% 33% 31% 30% 39% 41% 35% Jun-20 Jun-21 Jun-22 Non-Convertible Debentures Bank Loans Assignment/ Securitization/ Co-Lending ECB Assignment/ Securitization/ Co-lending contributes to 31% of IBH’s funding mix – an all time high due to increasing co-lending and sell down
Slide 16: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Total Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Cash & Investments 7,180 7,180 9,779 10,304 12,660 13,959 11,106 11,931 Customer Repayments 60,194 4,583 4,387 3,935 4,024 2,640 2,749 2,483 Non Current Assets 6,221 -
Slide 17: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Cash & Investments 11,543 12,536 11,877 12,957 13,421 12,624 12,987 13,209 Customer Repayments 2,430 2,211 2,393 2,111 1,866 1,878 1,603 2,077 Non Current Assets - -
Slide 18: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY27 Q2FY27 Q3FY27 Q4FY27 Q1FY28 Q2FY28 Q3FY28 Q4FY28 Cash & Investments 14,022 12,963 11,192 11,222 12,329 12,308 10,455 11,700 Customer Repayments 929 936 821 1,886 906 732 1,607 646 Non Current Assets - - - - - - - -
Slide 19: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY29 Q2FY29 Q3FY29 Q4FY29 Q1FY30 Q2FY30 Q3FY30 Q4FY30 Cash & Investments 7,400 7,733 7,181 6,662 6,468 6,729 7,170 7,317 Customer Repayments 634 678 659 653 405 580 270 332 Non Current Assets - - - - - - - - Total Inflow
Slide 20: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY31 Q2FY31 Q3FY31 Q4FY31 Q1FY32 Q2FY32 Q3FY32 Q4FY32 10+ Years Cash & Investments 7,530 7,644 7,765 7,888 8,011 8,094 8,178 8,256 8,334 Customer Repayments 226 230 230 226 183 181 172 169 4,537 Non Current Assets - - -
Slide 21: 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 22: 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 23: 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 24: 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 25: Beginning of a Long Term Property Market Up-cycle
Beginning of a Long Term Property Market Up-cycle 25
Slide 26: 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 27: Growth Momentum in Residential Real Estate
Growth Momentum in Residential Real Estate Sales pick-up • Housing sales in top 8 Indian cities recorded 60% YoY growth in H1 CY2022 and 19% growth compared to H2 CY20211: ‐ Total housing sales in H1 CY2022 in top 8 Indian cities reached a nine-year high in terms of half yearly sales volume ‐ NCR
Slide 28: Commercial Office Space Absorption
Commercial Office Space Absorption • Commercial office space absorption registered a growth of 107% YoY in H1 CY2022 with 25.3 million sq. ft. office space getting transacted 1 - Transaction volumes in Ahmedabad, Pune and Kolkata grew the most at 201%, 187% and 128% YoY respectively in H1 CY2022 - B
Slide 29: Static Credit Performance Analysis of LAP and HL Pools
Static Credit Performance Analysis of LAP and HL Pools 29
Slide 30: Retail Loan Book of Highest Quality
Retail Loan Book of Highest Quality Portfolio performance of all sold down pools of ₹ 76,779 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 31: 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 32: 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 33: 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 34: 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 35: 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 2 20-Mar-14 335.4 31
Slide 36: 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 37: Corporate Social Responsibility
Corporate Social Responsibility 37
Slide 38: 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 15 JSK- mobile medical vans - 17,206 patients diagnosed and treated in this
Slide 39: Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding
Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding 39
Slide 40: 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+ • In FY22, CRISIL, an S&P Global Company and ICRA, a Moody’s Investors Service Company, revised the rating outlook o
Slide 41: Productivity Ratios
Productivity Ratios FY FY FY FY FY FY FY FY FY FY FY 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 No. of 4,243 4,072 4,099 4,840 5,453 6,388 8,111 8,676 5,405 3,480 4,603 Employees Profit per 0.24 0.31 0.38 0.39 0.43 0.46 0.47 0.47 0.41 0.35 0.26 employee [₹ Cr] Asset per 5.85 8.09 10.84 1
Slide 42: Key Financial Metrics
Key Financial Metrics FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Pre Tax RoAA [%] 4.9% 4.9% 4.8% 4.9% 4.9% 4.6% 4.3% 4.2% 2.2% 1.6% 1.8% Post Tax RoAA [%] 3.7% 3.8% 3.8% 3.7% 3.7% 3.6% 3.3% 3.0% 1.9% 1.3% 1.3% RoE [%] 22% 26% 27% 29% 26% 26% 30% 24% 18% 7.5% 7.2% Ca
Slide 43: Valuations and Returns
Valuations and Returns Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Jun-22* Market Price 207 272 286 558 674 998 1,194 744 228 193 157 125 per Share [₹] Dividend per 13 20 29 35 36 36 42 40 21 9 - - Share [₹] Dividend Yield 6.3% 7.4% 10.2% 6.3% 5.3% 3.6% 3.5% 5.4% 9.2
Slide 44: Shareholding Pattern
Shareholding Pattern 4.9% 9.6% 25.1% 50.6% 9.8% Founder Foreign Institutional Shareholding MFs/Banks/IFI Public Pragati MF: Mutual Funds; IFI: Indian Financial Institutions As on 30th June, 2022 44
Slide 45: Detailed Financials
Indiabulls HOUSING FINANCE Detailed Financials 45
Slide 46: Consolidated Income Statement
Consolidated Income Statement 46
Slide 47: 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 48: Thank you
Indiabulls HOUSING FINANCE Thank you
Indiabulls Housing Finance — Q1 FY2022-23 Earnings Presentation on 6ix