India Shelter Finance Corp. Ltd. · NSE:INDIASHLTR
India Shelter Finance — Q3 FY24 Earnings Presentation
44 slides from India Shelter Finance's earnings presentation, February 2024
Slide 1: Investor Presentation Q3FY24
Investor Presentation Q3FY24 India Shelter Finance Corporation Limited
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (“Presentation”), which have been prepared by India Shelter Finance Corporation Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 3: Key Highlights – Q3FY24
Key Highlights – Q3FY24 AUM ROA Rs. Crore 8% QoQ 5,609 42% YoY 4.7% Disbursement ROE Rs. Crore 6% QoQ 679 36% YoY 13.9% PAT Gross Stage 3 Rs. Crore 3% QoQ 20 BPS QoQ 62 55% YoY 1.2% 109 BPS YoY 3
Slide 4: Executive Summary – Q3FY24
Executive Summary – Q3FY24 • Delivered AUM growth of 42% YoY to Rs. 5,609 Cr Business • Portfolio LTV maintained at 51%, ATS continues to be at Rs. 10 Lacs Metrics & Expansion • The company continues to deepen its presence by adding 12 new branches • Geographic presence stood at 215 locations as of
Slide 5: About the Company
About the Company India Shelter Finance Corporation Limited 5
Slide 6: Who we are
Who we are What we do Deep Vintage Focus on India Shelter provides affordable home Founded in 2010, India Shelter has a 14-year loans and loan against property in Tier 2 and 3 geographies in India. vintage that results in deep understanding of the segment Underserved Customer Base Focus Segment Corp
Slide 7: Growth Journey
Growth Journey AUM (Rs. Crores) 47% AUM crosses Rs. 5, 000 crs CAGR Listed on BSE, NSE (FY14-9MFY24) CARE: 5,609 Upgraded to PAT crosses A+ (Positive) Rs. 100 crs Acquires 4,359 ICRA: majority Upgraded Presence in stake to A- 15 States (Positive) AUM crosses Rs. 1,000 crs Crossed 100 3,073 Opened 1s
Slide 8: Continuous Growth With Focus On Fundamentals
Continuous Growth With Focus On Fundamentals No. of States 15 No. of Branches 183 Disbursement (INR Cr) 1,964 AUM (INR Cr) 4,359 FY 23 FY 23 FY 23 FY 23 2.2x 3.5x 3.7x 12 81 566 1,178 FY 19 FY 19 FY 19 FY 19 PAT (INR Cr) 155 Opex / AUM 4.9% ROE 13.4% GNPA 1.1% FY 23 FY 23 FY 23 FY 23 5.2x 30 7.8% 4.
Slide 9: Key Success Factors
Key Success Factors Curated In-house Processes Enabling Robust Asset Quality across Cycles 4 5 Extensive, Diversified, Phygital 3 Professional Management Guided by Distribution having Pan India presence Board Comprising of Industry Veterans Technology Driven Company with Scalable Model 2 6 Strong Fo
Slide 10: Experienced Board with Industry Veterans
Experienced Board with Industry Veterans Chairman Independent Directors Parveen Gupta Rachna Dixit Ajay Jha Savita Mahajan Thomson Thomas Ex-MD SBI Ex-Regional Ex-Finance Secretary Ex-Dean ISB Ex-CIO HDFC Life Director RBI of India Nominee Directors Management Sudhin Choksey Ex-MD Gruh Finance 35+ y
Slide 11: Professionally Managed Company
Professionally Managed Company Experienced Management Team with Strong Alignment of Interest with 9% ESOP Pool Rupinder Singh Ashish Gupta Sharad Pareek Nilay MD & CEO CFO CRO CHRO 20+ yrs of experience 18+ yrs of experience 22+ yrs of experience 22+ yrs of experience Ex-Cholamandalam Ex-Satin Micro
Slide 12: Shareholding Pattern
Shareholding Pattern Key Institutional Investors 2.1% 1.5% WestBridge Investor % Holding Key Investors Nexus WestBridge Capital^ 46.8% 5.8% 6.2% Nexus Venture Partners^ 21.3% DII Madison^ 4. 9% Publics & others DIIs (MFs, AIFs, Insurance) 16.3% 46.8% Nippon Mutual Fund* 2.0% FII Quant Mutual Fund* 1
Slide 13: Business Update
Business Update India Shelter Finance Corporation Limited 13
Slide 14: Industry Dynamics
Industry Dynamics Housing Market Size LAP Market Size Segment % Segment % <0.5 million 2% <0.5 million 5% Focus 0.5 million to 2.5 million 35% 24% Focus Segment 0.5 million to 2.5 million Segment >2.5 million 63% >2.5 million 71% Overall 100% Overall 100% ₹ 47 Tn ₹ 18 Tn ₹ 14 Tn ₹ 5 Tn ₹ 31.1 Tn ₹ 1
Slide 15: Q3FY24 Snapshot
Q3FY24 Snapshot AUM Employees HL | LAP1 Gross Stage 3 ROA Rs. Crore 42% YoY -109bps YoY 5,609 8% QoQ 3,139 58% | 42% 1.2% +20bps QoQ 4.7% Disbursement States Secured Book Net Stage 3 ROE Rs. Crore 36% YoY 15 100% 0.9% 13.9% -90bps YoY 679 6% QoQ +20bps QoQ PAT Branches Average Ticket Size2 PCR3 CRAR
Slide 16: Robust Growth With Profitability
Robust Growth With Profitability Disbursement (Rs. Crores) AUM (Rs. Crores) PAT (Rs. Crores) 42% YoY 40% 8% 66% YoY QoQ YoY 1,899 5,609 170 5,181 1,361 36% 55% YoY YoY 102 6% 3,954 3% QoQ QoQ 638 679 60 62 499 40 21 53 82 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 9
Slide 17: Consistent Asset Quality
Consistent Asset Quality Stage 3/ GNPA (%) DPD above 90 DPD upto 90 Stage 3/ NNPA (%) 2.3% 0.3% 1.2% 1.8% 1.0% 0.00% 0.1% 0.9% 0.7% 2.0% 1.0% 1.1% Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 30+ DPD (%) Collection Efficiency (%) 99.1% 99.2% 99.1% 3.5% 3.5% 3.2% Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY2
Slide 18: Maintaining Spreads
Maintaining Spreads Yield COF Spread 14.8% 14.7% 14.8% • Cost of Funds (COF) maintained at 8.8% despite rising interest rate market 8.5% 8.8% 8.8% • Marginal Cost of Funds for 9MFY24 is at 8.6% • In Q3FY24, variable rate loans were repriced upwards by 25bps 6.3% 5.9% 6.0% Dec'22 Sep'23 Dec'23 18 Yie
Slide 19: Extensive Pan-India Distribution Network
Extensive Pan-India Distribution Network Geographically Diversified with Contiguous Scope for Operating Leverage Expansion (Vintage-wise AUM/ branch, Dec-23) No of AUM AUM /Branch AUM /Branch Branch Vintage Branches (Rs. Crs) Q3FY24 FY21 Up to 1 year 45 307 7 1 1 to 3 years 75 1,571 21 14 More than
Slide 20: Customer & Portfolio Demographics
Customer & Portfolio Demographics >20 to 25L >25L ≤5L Salaried Loan Tier - 1 7% 5% 10% December 2023 against 29% 10% Property 42% Tier - 3 >15 to 20L 49% AUM Profile City 12% ATS1 Home Rs. 10 Mix Mix Tier Loans Lacs 58% Tier - 2 >5 to 10L Self Employed 40% 71% 41% >10 to 15L 26% >20 to 25L >25L ≤5L
Slide 21: Tech, Credit & Risk
Tech, Credit & Risk India Shelter Finance Corporation Limited 21
Slide 22: Robust Underwriting and Risk Management
Robust Underwriting and Risk Management In-house BRE for analyzing 100+ fields for customer and collateral evaluation Customer Assessment Collateral Evaluation Controls in Place ✓ Background and Business Collateral Valuation Risk Management Vintage Process ✓ Neighbor & Reference Check ✓ Identificati
Slide 23: End to End Digital Process for Home Loans
End to End Digital Process for Home Loans Minimizing our carbon footprint through digitization IndiaShelter IndiaShelter IndiaShelter IndiaShelter IndiaShelter iSales iCredit iTech iCollect iServe 92% Digital Collections 99% E-Nach Mandates 98% E-Signing Customer Credit Collateral Collections Custom
Slide 24: Technology Driven Company with Scalable Operating Model
Technology Driven Company with Scalable Operating Model Strong Tech Architecture across Processes Multiple Digital Assets Digital Loan Approval Cloud Based Platform and Paperless Approach Customer 360 view Data Capture Extensive database with 100+ data points on customer and collateral profiles to e
Slide 25: Separate Hierarchy Of Key Functions
Separate Hierarchy Of Key Functions Underwriting Is Independent Of Sales Customer Ops & Cust. Collection & Credit Legal Technical Acquisition Service Recovery Loan Officers Credit Manager Branch Service Tech. Manager Collection Manager Branch Manager Branch Manager Area Sales Area Credit Manager Are
Slide 26: Financials
Financials India Shelter Finance Corporation Limited 26
Slide 27: Strong Liability Franchise
Strong Liability Franchise Diversified Funding Profile and Strong Lending Relationships Lender Base 7+ years Borrowing Mix (Q3FY24), % Avg. Tenure of Borrowings 38 Lender Relationships PTC NCD Key Lenders 2% ECB 1% FI & Others 6% MF, NBFC, NHB 16% Term Private Banks Loans by Banks & FI 55% DA 21% Pu
Slide 28: Strong Balance Sheet
Strong Balance Sheet Consistent Rating Upgrades Strong ALM Surplus Outflow Inflow Cumulative ALM Profile, 9MFY24, % Rs. Crs 2023 A+ (Positive)* 256 659 <3 months 915 2022 A+ (Stable) 465 749 <6 months 1,213 2019 A (Stable) <1 Year 864 814 1,677 2018 A- (Positive) <3 Year 2,250 830 3,081 2016 A- (Sta
Slide 29: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (Rs. Cr.) As on December-23 Total Available Cash & Cash Equivalents 899 Liquidity of Un-availed Sanctions from Banks/FI 589 INR 1,488 Cr Total Liquidity Position 1,488 Particulars (Rs. Cr.) Q4FY24 Q1FY25 Q2FY25 Q3FY25 Opening Liquidity 1,488 1,530 1,540 1,5
Slide 30: Profit & Loss Statement - Quarterly
Profit & Loss Statement - Quarterly Particulars (Rs. Cr.) Q3FY24 Q3FY23 YoY Q2FY24 QoQ Interest Income on loans 169.3 125.9 34.5% 159.3 6.2% Net Gain on Direct Assignments 19.9 7.7 23.5 Other Income 29.2 22.6 27.7 Total Income 218.4 156.1 39.9% 210.6 3.7% Finance Cost 73.6 57.6 27.8% 71.2 3.4% Net T
Slide 31: Profit & Loss Statement – YTD & Annual
Profit & Loss Statement – YTD & Annual Particulars (Rs. Cr.) 9MFY24 9MFY23 YoY FY23 FY22 YoY Interest Income on loans 470.3 345.0 36.3% 476.7 353.2 35.0% Net Gain on Direct Assignments 62.2 23.0 43.9 49.7 Other Income 84.5 61.0 85.7 56.9 Total Income 617.0 429.0 43.8% 606.2 459.8 31.8% Finance Cost
Slide 32: Balance Sheet
Balance Sheet Particulars (Rs. Cr.) Dec-23 Dec-22 Sep-23 March-23 March-22 Sources of Funds Share Capital 53.5 43.8 45.0 43.8 43.7 Reserves & Surplus 2,155.3 1,140.7 1,329.9 1,196.8 1,032.4 Borrowings 3,512.7 2,669.7 3,288.5 2,988.9 2,070.0 Other liabilities & provisions 86.7 132.8 95.2 66.2 75.1 To
Slide 33: ECL Provisions Summary
ECL Provisions Summary Particulars Dec-23 Sep-23 Dec-22 Gross Stage 3 57.0 43.9 79.3 % Portfolio in Stage 3 1.2% 1.0% 2.3% ECL Provision Stage 3 14.9 12.6 18.4 Net Stage 3 42.1 31.3 60.9 % Portfolio in Stage 3 0.9% 0.7% 1.8% Provision Coverage Ratio (PCR) – Stage 3 26.1% 28.7% 23.2% Gross Stage 2 12
Slide 34: ROE Tree & Key Ratios
ROE Tree & Key Ratios Particulars (Rs. Crs) Q3FY24 Q3FY23 Q2FY24 9MFY24 9MFY23 FY23 Total Revenue to Average Total Assets 16.5% 16.1% 17.8% 16.3% 15.9% 16.1% Finance cost to Average Total Assets 5.6% 6.0% 6.0% 5.6% 5.7% 5.6% Spread to Average Total Assets 11.0% 10.2% 11.8% 10.7% 10.2% 10.6% Operatin
Slide 35: Financial Snapshot – 10 years
Financial Snapshot – 10 years Particulars FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 CAGR (%) Operational Branches 31 33 47 61 64 81 86 115 130 183 States 4 5 7 8 8 12 12 15 15 15 Active Live Accounts 5,304 8,552 12,823 15,730 20,117 24,354 27,602 33,607 43,328 58,552 Employees 255 254 420 52
Slide 36: Key Growth Strategies
Key Growth Strategies Grow and Diversify Diversify Borrowings Leverage Technology Enhance Brand Distribution and Optimize for Scalability and Equity and Foster Network Borrowing Costs Productivity Sustainability Deepening branch Enhance credit rating Enhance lead sourcing Increase concentration pene
Slide 37: ESG
ESG India Shelter Finance Corporation Limited 37
Slide 38: Focus on Social Capital
Focus on Social Capital Social SDGs achieved Customers SDGs achieved India Shelter Nakshatra: Serving the underserved & unserved Our Educational Initiative segment leading to financial inclusion: Akshaya Patra Foundation (to ensure a nutritious meal for the underprivileged students) 71% 90% Samartha
Slide 39: Focus on Human Capital
Focus on Human Capital Employees Employee Development & Well Being We prioritize the development & well-being of our employees, ensuring a healthy and balanced work environment. Here are some initiatives we have implemented: • Prarambh - A Leadership Journey • India Shelter Child Scholarship Program
Slide 40: Strong Governance Structure
Strong Governance Structure Strong corporate governance framework in place for effective risk management Board of Directors Board Level Committees Risk Nomination & Top-tier Corporate Management Committee Audit Committee IT Strategy Committee Remuneration Committee CSR committee Governance: Manageme
Slide 41: Awards & Accolades
Awards & Accolades Awards won in 2023 41
Slide 42: Glossary
Glossary Terms Explanation AUM represents the aggregate of future principal outstanding and overdue principal outstanding, if any, for all loan assets under management which includes (i) loan assets held by us as of the last day of the relevant period/year (ii) loan assets which have been transferre
Slide 43: Glossary
Glossary Abbreviation Expansion Abbreviation Expansion ALM Asset liability management HL Home loan ATS Average Ticket Size IPO Initial Public Offer AUM Assets under management LAP Loan against property BPS Basis Points LCR Liquidity Coverage Ratio BRE Business rule engine LIG Low-income group CAGR C
Slide 44: Thank You
Thank You For further information, please contact: Rahul Rajagopalan Head – Investor Relations rahul.rajagopalan@indiashelter.in | investorrelations@indiashelter.in
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