L&t Finance Ltd · NSE:LTF
L&t Finance — Q1 FY2021 Earnings Presentation
84 slides from L&t Finance's earnings presentation, Jul 16, 2020
Slide 1: Exchange filing cover letter for Q1 results
July 16, 2020 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Corporate Relations Department, Plot No. C/1, G Block, 1st Floor, New Trading Ring, Bandra - Kurla Complex, Bandra (East), P. J. Towers, Dalal Street, Mumbai - 400 051. Mumbai - 400 001. Symbol: L&TFH Security Code No
Slide 2: Independent Auditor's Review Report on Consolidated Results
DELOITTE HASKINS & SELLS LLP B. K. KHARE & CO. Chartered Accountants Ch arte red Accountant s Indiabulls Finan ce Centre, Tower 3 706/7 08, Sharda Chambers 27th - 32nd Floor, Senapati Bapat Marg New Marine Lines Elphinstone Road (West) Mumbai 400004. Mumbai 400013. INDEPENDENT AUDITOR'S REVIEW REPOR
Slide 3: Auditor's review report (continued)
DELOITTE HASKINS & SELLS LLP B. K. KHARE & CO. 4. The Statement includes the results of the following entities: Sr. Nature of Name of the Company No. relationship 1 L&T Finan ce Limited Subsidiary 2 L&T In f rastru ctu re Fin ance Company Limited Subsidiary 3 L&T Housing Finance Limited Subsidiary 4
Slide 4: Auditor's review report (continued)
DELOITTE HASKINS & SELLS LLP B. K. KHARE & CO. 7. We did not review the interim f inan cial information/financial results of six subsidiaries included in the Statement, whose interim financial information/financial results reflect total revenues of '(98 .92 crore for the quarter ended Jun e 30, 2020
Slide 5: Consolidated Unaudited Financial Results Q1 FY21
L&T FINANCE HOLDINGS LIMITED Clr-i. L67120M1I2008PLC181833 Regd. Office: Brindavan, Plot 1\'"0.177, C.S.T. Road. Kalina, Santacruz (East), l\'1umbai - 400 098, Maharashtra, India Website: ",,\-nv.ltfs.com Email: igrc(if!tfs.com Phone: +91 22 6212 5000 Fax: +91226212 5553 (~in Crore) STATEMEr-iT OF C
Slide 6: Consolidated results notes and moratorium
Moratorium in accordance with the Reserve Bank of India (RBI) guidelines: The outbreak of Covid-19 pandemic across the globe & India has contributed to a significant decline and volatility in the global and Indian financial markets and slowdown in the economic activities. The RBI has issued guidelin
Slide 7: Press Release: Q1 FY21 results
Press Release Thursday, July 16, Mumbai L&T Finance Holdings Ltd. announces financial results for the quarter ended June 30, 2020 L&T Finance Holdings • Faster announces than expected financial recovery results in Rural for the quarter segments; and increase 19% YoY financial in year ended Farm June
Slide 8: Press release: moratorium and collections
In addition, for projects under moratorium, the company has ensured that adequate liquidly is maintained in borrower’s DSRA / TRA accounts. B. Collections: LTFH placed higher focus on collection while educating the customers about the impact of moratorium. It’s inherent strengths in data analytics w
Slide 9: Strong Balance Sheet
E. Strong Balance Sheet: The Gross Stage 3 assets of the company stood at 5.24% of its book, showing a reduction of 48 bps on YoY basis. The company also strengthened the PCR on stage 3 assets from 59% in Q4FY20 to 69% in Q1FY21. Period Q1FY20 Q4FY20 Q1FY21 Gross Stage 3 5,460 5,037 4,939 Net Stage
Slide 10: Financial Performance
Financial Performance: Profitability for the quarter was largely impacted due to interest cost on enhanced liquidity, lower fee income and most importantly, incremental provisions taken to strengthen the balance sheet against the after effect of the pandemic The consolidated PAT is Rs. 148 Cr for Q1
Slide 11: Press contact details
[1] Systemically Important Core Investment Company, a classification of Non-Banking Financial Company (NBFC) by RBI Follow us: @LnTFS @LnTFSonline LTFinance L&TFinancialServices For further information, please contact: Shveta Singh – Head, Group Marketing and Corporate Communications shvetasingh@ltf
Slide 12: Auditor's Review Report on Standalone Results
DELOITTE HASKINS & SELLS LLP B. K. KHARE & CO. Chartered Accountants Chartered Accountants Indiabulls Finance Centre, Tower 3 706/708, Sharda Chambers 27th - 32nd Floor, Senapati Bapat Marg New Marine Lines Elphinstone Road (West) Mumbai 400004. Mumbai 400013. INDEPENDENT AUDITOR'S REVIEW REPORT ON
Slide 13: Auditor's review report signatures
DELOITTE HASKINS & SELLS LLP B. K. KHARE & CO. 5. We draw attention t o Note 4 to the standalone financial results in which the Company describes the uncertainties arising from the COVID 19 pandemic. Our conclusion on the Statement is not modified in respect of this matter. For DELOITTE HASKINS & SE
Slide 14: Standalone Unaudited Financial Results
L&T FINANCE HOLDINGS LIMITED CIN. L67120MH2008PLCI81833 Regd. Office.: Brindavan, Plot No. 177, e.S.T. Road, Kalina, Santacruz (East), Mumbai - 400 098, Maharashtra, India Website: www.ltfs.com Email: igrc@ltfs.com Phone: +91 22 6212 5000 Fax: +912262125553 (~in Crore) STATEMENT OF STANDALONE UNAUDI
Slide 15: Strategy & Results Update – Q1FY21
Strategy & Results Update – Q1FY21 1
Slide 16: Disclaimer
Disclaimer The information in this presentation is provided by L&T Finance Holdings Limited (the “Company”) for information purpose only. This presentation or any information therein may not be used, reproduced, copied, photocopied, duplicated or otherwise reproduced in any form or by any means; or
Slide 17: LTFH 2.0 Our Commitment
LTFH 2.0 Our Commitment TO BE A COMPANY WHICH: Sustainably delivers top quartile RoE with strengthened risk profile Has a clear Right to Win in each of the businesses Uses Data Intelligence as a key to unlock RoE Has a culture of “Results” not “Reasons” Stable and sustainable organisation built on t
Slide 18: Agenda
Agenda A Q1 in perspective B What worked for LTFH C Q1 P&L explained 4
Slide 19: Q1FY21 Synopsis (1/3)
Q1FY21 Synopsis (1/3) Progressive business pickup Improved Asset Quality Strong Balance Sheet Strong recovery in collections Inspite of strong collections recovery GS3 reduced from especially in Rural. July collection and improved asset quality; prudently 5.72% to 5.24% YoY trend better than June cr
Slide 20: Q1FY21 Synopsis (2/3)
Q1FY21 Synopsis (2/3) April 2020 - Nation wide lockdown coupled with RBI moratorium • Disbursement and collection activities at a standstill – complete closure of branches, MCs and point of sales • Implemented portfolio action plans and tightened risk management framework • Focused on moving collect
Slide 21: Q1FY21 Synopsis (3/3)
Q1FY21 Synopsis (3/3) June 2020 – Re-establishing on-ground operations • Significant uptick in collection volumes owing to on-field efforts and increased capacity of call centers o Drop in retail customers under moratorium in Jun’20 over May’20 o Sharp reduction in debtors (~Rs. 1,300 Cr QoQ) and GS
Slide 22: Q1FY21 in perspective
Q1FY21 in perspective Lockdown till Apr / May Lockdown Gradual unlocking in May / June and extension of RBI moratorium till Aug-20 Unlocking 8
Slide 23: Moratorium – Considerable improvement post opening up
Moratorium – Considerable improvement post opening up Lockdown Product LTFS’ Moratorium Policy 1.0 LTFS’ Moratorium Policy 2.0 • All customers granted moratorium for 3 Micro Loans installments by default as per MFIN framework • Moratorium for 3 installments by default where • Moratorium grant only u
Slide 24: Enhanced Portfolio Actions
Enhanced Portfolio Actions Lockdown Work Incentives Customer Allocation Roll-out of revised incentives across teams in line with the Engagement revised business volumes Monitoring Sales and credit teams Educating customers on augmented collection Analytics Focus on further conversion financial impac
Slide 25: Unlock - Strategy
Unlock - Strategy Resumption of Further on-ground Collections tightened credit Sourcing Liquidity operations measures Measured business re-start using data analytics based approach on collections and tightening of credit norms while maintaining competitive strength 11
Slide 26: Resumption of on-ground operations
1. Resumption of on-ground operations Opening of branches • Gradually opening from May. In June, all the branches except those in the containment zone were opened up • In Farm and Micro Loans, >95% of the branches have opened up as majority of the rural areas fall under the green and orange zones •
Slide 27: Collections Strategy
2.1.1 Collections Strategy Apr May Jun Digital repayment push Restoring collection rhythm Re-establishing repayment culture • Increase in bounce rates for retail • Usage of analytics for propensity • Focused on regular collections and customers due to lockdown modeling and collection prioritization
Slide 28: Rampant improvement in collections m-o-m
2.1.2 Rampant improvement in collections m-o-m Rural Average daily collection count Farm 2,67,025 • Analytics based prioritization and on-ground collection efforts, 1,20,479 helped achieve CE of pre-covid levels • Cash flow availability with farmers due to bumper rabi crop 20,902 Two Wheeler 1,304 •
Slide 29: Resumed construction activity leading to collection pickup
2.1.3 Resumed construction activity leading to collection pickup Housing Construction resumed for under construction projects Escrow Collections (as % of pre-Covid levels) 86% Pre-Covid collections 81% 73% 33% 14% 15% 6% Apr May Jun Jul Apr May Jun • Strong focus on resuming construction by accessin
Slide 30: Steady performance owing to economic pickup
2.1.4 Steady performance owing to economic pickup Infrastructure Finance Industry avg Daily Power Generation (Mn Units) Renewables 4,000 3,431 3,615 3,425 500 3,324 3,232 2,835 • Operational projects have been conferred “Must Run” status 3,000 400 2,000 356 300 • No material adverse impact in solar
Slide 31: Collections – Strong pickup through concerted collection efforts
2.2 Collections – Strong pickup through concerted collection efforts Focused Business Q1FY21 – 4,321 2,513 813 995 Apr-20 May-20 Jun-20 Rural Finance Housing Finance Infrastructure Finance Q1FY21 – 2,249 Q1FY21 – 1,613 Q1FY21 – 459 1,472 284 493 162 116 181 860 367 386 Apr-20 May-20 June-20 Apr-20 M
Slide 32: Substantial reduction in 1+DPD bucket
2.3 Substantial reduction in 1+DPD bucket Debtors (1-90 DPD) GS3 5,572 4,266 5,037 4,939 Q4FY20 Q1FY21 Q4FY20 Q1FY21 Substantial reduction in debtors by Rs. 1,306 Cr (1-90 DPD) on the back of improved collections across businesses Reduction in GS3 by Rs. 98 Cr led by Rural portfolio through on-g
Slide 33: Further tightened credit measures
3. Further tightened credit measures • Reduction of max LTV across products. LTV maintained under 70% for Farm; reduced from 74% to 68% for TW, maintained under 70% for HL and 55% for LAP • Measured business re-start based on weekly evaluation of on the on-ground collections results • Reassessed col
Slide 34: Sourcing – Targeted growth
4. Sourcing – Targeted growth All figures are in Rs. cr Focused Business 9,608 Q1FY21 – 2,318 492 1,537 289 Q1FY20 Apr-20 May-20 Jun-20 Rural Finance Housing Finance Infrastructure Finance 4,232 3,252 Q1FY21 – 1,089 Q1FY21 – 913 2,123 Q1FY21 – 317 702 742 9 202 99 124 93 181 167 Q1FY20 Apr-20 May-20
Slide 35: Comfortably placed with adequate liquidity
5. Comfortably placed with adequate liquidity Month end Liquid Assets 11,794 9,348 9,082 8,468 Mar-20 Apr-20 May-20 Jun-20 As of June’20, Rs.16,669 Cr of liquidity is maintained through the following: Liquid Assets in form of cash, FDs and other liquid investments of Rs. 9,082 Cr; comfortably pl
Slide 36: Agenda
Agenda A Q1 in perspective B What worked for LTFH C Q1 P&L explained 22
Slide 37: What worked for LTFH: Assurance
What worked for LTFH ASSURANCE Prudent ALM and well established liability franchise Highest Credit Rating Strong Balance Sheet Strengthened risk profile Building Business Strength 23
Slide 38: Prudent ALM
1.1 Prudent ALM As on 30th June, 2020 Structural Liquidity statement 57,671 Cumulative Inflows (Rs. Cr) Cumulative Outflows (Rs. Cr) 33,803 30,280 24,216 19,471 19,306 15,905 9,281 11,508 11,335 3,580 6,376 39 385 1-7 days 8-14 days 15 days-1 month 1-2 months 2-3 months 3-6 months 6-12 months Cumula
Slide 39: Well established liability franchise (1/2)
1.2 Well established liability franchise (1/2) Q1FY20 Q1FY21 3% 3% 2% 2% 9% 13% 7% 38% 43% 6% 36% 38% Bank Loans NCD (ex retail) NCD Retail CP ECB Others Rs. 92,887 Cr Rs. 94,133 Cr Focus on diversification over the years enabled stable mix of funding sources Focus on long term borrowings has le
Slide 40: Well established liability franchise (2/2)
1.2 Well established liability franchise (2/2) Term Loans - PSL 1% Incremental Long Term Borrowing (Rs Cr) Term Loans - Non PSL 28% Products Q1FY21 NCD – Private Placement* 2,500 NCD - Term Loans – Non PSL 1,000 Private Placement Term Loans – PSL 50 71% Total 3,550 Rs. 3,550 Cr Already raised ~Rs
Slide 41: Weighted average cost on borrowings
1.3 Weighted average cost on borrowings 8.71% 8.61% 8.58% 8.53% 8.59% 8.54% 8.43% 8.49% 8.50% 8.36% 8.24% 8.16% 8.23% 8.29% 8.33% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY17 FY17 FY18 FY18 FY18 FY18 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 Effective liability management is demonstrated thr
Slide 42: AAA Credit Rating for LTFH and all its subsidiaries
2. AAA Credit Rating for LTFH and all its subsidiaries Credit Ratings – LTFH and its subsidiaries • LTFH and all its lending subsidiaries have been assigned / reaffirmed AAA rating from CRISIL, ICRA, CARE and India Ratings: CRISIL assigned in October 2019 and reaffirmed in May 2020 Ratings India
Slide 43: Strong Balance sheet
3.1 Strong Balance sheet LTFH Consolidated – Asset Quality 58% 59% 69% 10% 5,460 5,037 4,939 7% 5.36% 5.72% 5.24% 2,287 2,078 1,553 4% 2.28% 2.48% 1.71% 1% Q1FY20 Q4FY20 Q1FY21 GS3 (Rs. Cr) NS3 (Rs. Cr) GS3 (%) NS3 (%) PCR (%) In addition to above; Macro Prudential provisions, Covid-19 and enhanced
Slide 44: Strong Balance sheet – Additional provisions on Non GS3 book
3.2 Strong Balance sheet – Additional provisions on Non GS3 book Particulars (Rs. Cr) Total Lending Business Loan book size (excluding GS3 book) - (1) 89,363 Provision on stage 1 and Stage 2 assets as per ECL model - (2) 399 Additional provisions - (3+4+5=6) 1,244 Macro Prudential provisions - (3) 6
Slide 45: Strengthened risk profile: Retail Finance
4.1 Strengthened risk profile: Retail Finance Rural, HL and LAP Actions taken to ensure quality portfolio • Use of data analytics to determine OEM classification, geography selection and dealer penetration • Centrally controlled parameterized underwriting with focus on ensuring portfolio quality by
Slide 46: Strengthened risk profile: Project Finance
4.2 Strengthened risk profile: Project Finance Infrastructure and Real Estate Actions taken to ensure quality portfolio • Focus on funding to marquee developers with proven track record of project completion and ability to sell • Gradually increased share of commercial portfolio with focus largely t
Slide 47: Building and protecting strength: Rural Finance
5.1 Building and protecting strength Rural Finance Industry LTFH • Positive sentiment due to robust Rabi crop, good progress in • Disbursements in Jun’20 were higher than previous year owing kharif sowing so far to strong rural cash • Timely onset of monsoon and well distributed rainfall has • Incre
Slide 48: Building and protecting strength: Housing Finance
5.2 Building and protecting strength Housing Finance Industry LTFH • Home Loan disbursements during the quarter slowed down • NBFCs/HFCs loan portfolio reduced significantly due to funding constraints, slowdown post Covid and portfolio sales by HFCs significantly on account of lockdown of locations
Slide 49: Building and protecting strength: Infrastructure Finance
5.3 Building and protecting strength Infrastructure Finance Industry LTFH • Continue to focus on our core sectors – roads, • Liquidity injection of Rs. 90,000 Cr by GoI to Discoms through PFC and REC. Expected to positively impact renewable and transmission the liquidity of IPP players • Focus on ce
Slide 50: Building and protecting strength: Mutual Funds
5.4 Building and protecting strength Mutual Funds • Experienced investment team and superior fund performance has resulted in improvement in market ranking and higher growth than industry On a 5-year performance, 6 out of 10 Equity schemes (83% of equity AUM) are in top 1 & 2 quartile Fixed Inco
Slide 51: Agenda
Agenda A Q1 in perspective B What worked for LTFH C Q1 P&L explained 37
Slide 52: Summary of impact on results
Summary of impact on results • Lower disbursements in Retail segments due to lockdown even though there is • Book remained flat due to lower strong pick-up seen in June disbursements and moratorium impact on Disbursements • Project Finance – Focused on tranche Book collections disbursements • NIMS i
Slide 53: Focused book growth
Focused book growth Lending Businesses Non Lending Businesses Rural Housing Infrastructure Investment Finance Finance Finance Management Q1FY20 Q1FY21 Book AAuM1 21% 6% 4% 2% Book remained flat due to lower disbursements and moratorium impact on collections 1 Investment Management – AAuM (quarterly
Slide 54: NIMs
NIMs Interest Income Interest Cost NIMs 3,287 3,232 3,212 1,918 1,977 1,413 1,819 1,369 1,235 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Interest income remained stable across the quarters Maintained additional liquid assets worth ~Rs. 6,600 Cr throughout the quarter as a pru
Slide 55: NIMs + Fee & other income
NIMs + Fee & other income NIMs + Fee & other Income % of average book 6.76% 6.87% 5.78% Q1FY20 Q4FY20 Q1FY21 NIMs+Fees impacted due to lower fee income and negative carry (~Rs. 84 Cr) on account of maintaining additional liquid assets of ~Rs 6,600 Cr in Q1FY21 Impact of negative carry will reduc
Slide 56: Credit cost
Credit cost Credit Cost Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Credit Cost on focused business 260 414 445 349 231 * Additionally, utilized capital gain of Rs. 225 Credit Cost on defocused business 310 210 160 89 88* Cr from sale of Wealth Additional Provisions – Covid-19 - - - 209 277 business to provi
Slide 57: LTFH Consolidated – Summary financial performance
LTFH Consolidated – Summary financial performance Performance Summary Q1FY20 Summary P&L (Rs. Cr ) Q4FY20 Q1FY21 Y-o-Y (%) Addl. P&L charge in Q1FY21 3,287 Interest Income 3,232 3,212 (2%) 1,918 Interest Expense 1,819 1,977 3% 1,369 NIM 1,413 1,235 (10%) 396 Fee & Other Income 291 190 (52%) 1,765 NI
Slide 58: LTFH Consolidated – Key ratios
LTFH Consolidated – Key ratios Key Ratios Q1FY20 Key Ratios Q4FY20 Q1FY21 Addl. P&L charge in Q1FY21 13.22% Yield 13.02% 13.03% 5.51% Net Interest Margin 5.69% 5.01% 1.59% Fee & Other Income 1.17% 0.77% 7.10% NIM + Fee & other income 6.87% 5.78% 1.70% Operating Expenses 2.07% 1.70% 5.40% Earnings be
Slide 59: Capital allocation and RoE bridge: Q1FY21
LTFH Consolidated – Capital allocation and RoE bridge: Q1FY21 Q1 FY20 Q1 FY21 PAT Business Segments (₹ Cr) PAT Net Worth RoE Y-o-Y (%) PAT Net worth RoE 252 3,962 26.20% Rural Finance 114 4,516 9.91% (55%) 208 3,874 22.07% Housing Finance 23 4,301 2.12% (89%) 156 3,810 16.94% Infrastructure Finance
Slide 60: Conclusion
Conclusion Faster than expected recovery in Rural, well poised to gain from the same Significant pickup in collection volumes owing to on-field efforts, collection momentum continues in July especially in Rural; ML collections till 15th July’20 have already surpassed June Progressive Maintained
Slide 61: Appendix
Appendix Z) L&T Financial Services
Slide 62: Business wise disbursement split
Lending Business – Business wise disbursement split Disbursement Q1FY20 Segments (Rs. Cr ) Q4FY20 Q1FY21 Y-o-Y (%) 874 Farm Equipment 890 590 (33%) 1,090 TW Finance 1,203 310 (72%) 2,268 Micro Loans 2,216 7 (100%) - Consumer Loans 112 6 - 4,232 Rural Finance 4,420 913 (78%) 661 Home Loans 594 66 (90
Slide 63: Business wise book split
Lending Business – Business wise book split Book Q1FY20 Segments (Rs. Cr) Q4FY20 Q1FY21 Y-o-Y (%) 7,463 Farm Equipment 8,438 8,403 13% 5,857 TW Finance 6,575 6,386 9% 12,524 Micro Loans 12,495 12,531 0% - Consumer Loans 154 155 - 25,845 Rural Finance 27,661 27,476 6% 6,615 Home Loans 7,770 7,830 18%
Slide 64: Rural Finance – Summary financial performance
Rural Finance – Summary financial performance Performance Summary Q1FY20 Summary P&L (Rs. Cr ) Q4FY20 Q1FY21 Y-o-Y (%) 1,195 Interest Income 1,317 1,307 9% 469 Interest Expense 464 509 8% 726 NIM 852 798 10% 109 Fee & Other Income 94 32 (71%) 835 NIM + Fee & other income 946 829 (1%) 258 Operating E
Slide 65: Rural Finance – Key ratios
Rural Finance – Key ratios Key Ratios Q1FY20 Key Ratios Q4FY20 Q1FY21 18.54% Yield 18.97% 18.83% 11.32% Net Interest Margin 12.35% 11.53% 1.70% Fee & Other Income 1.36% 0.46% 13.02% NIM + Fee & other income 13.71% 11.98% 4.02% Operating Expenses 4.38% 3.78% 9.00% Earnings before credit cost 9.33% 8.
Slide 66: Rural Finance - Asset quality
Rural Finance - Asset quality Rural - Asset Quality 64% 77% 93% 13% 11% 1,021 9% 871 921 7% 5% 3.42% 3.78% 3.43% 314 3% 233 1.26% 0.89% 1% 0.26% 67 -1% Q1FY20 Q4FY20 Q1FY21 GS3 (Rs. Cr) NS3 (Rs. Cr) GS3 (%) NS3 (%) PCR (%) In addition to above; Macro Prudential provisions, Covid-19 and enhanced prov
Slide 67: Housing Finance – Summary financial performance
Housing Finance – Summary financial performance Performance Summary Q1FY20 Summary P&L (Rs. Cr ) Q4FY20 Q1FY21 Y-o-Y (%) 828 Interest Income 821 825 (0%) 484 Interest Expense 503 558 15% 344 NIM 317 267 (22%) 62 Fee & Other Income 39 36 (43%) 407 NIM + Fee & other income 357 302 (26%) 59 Operating E
Slide 68: Housing Finance – Key ratios
Housing Finance – Key ratios Key Ratios Q1FY20 Key Ratios Q4FY20 Q1FY21 12.90% Yield 12.29% 12.32% 5.36% Net Interest Margin 4.75% 3.99% 0.97% Fee & Other Income 0.59% 0.53% 6.33% NIM + Fee & other income 5.34% 4.52% 0.92% Operating Expenses 1.27% 1.19% 5.41% Earnings before credit cost 4.07% 3.33%
Slide 69: Housing Finance - Asset quality
Housing Finance - Asset quality Housing - Asset Quality 31% 31% 33% 3% 255 259 212 177 174 145 0.97% 0.97% 0.82% 0.68% 0.65% 0.56% 0% Q1FY20 Q4FY20 Q1FY21 GS3 (Rs. Cr) NS3 (Rs. Cr) GS3 (%) NS3 (%) PCR (%) In addition to above; Macro Prudential provisions, Covid-19 and enhanced provision for stage 1&
Slide 70: Infrastructure Finance (ex IDF) – Summary financial performance
Infrastructure Finance (ex IDF) – Summary financial performance Performance Summary Q1FY20 Summary P&L (Rs. Cr ) Q4FY20 Q1FY21 Y-o-Y (%) 781* Interest Income 766 752 (4%) 588 Interest Expense 555 598 2% 194 NIM 210 154 (20%) 106 Fee & Other Income 61 32 (70%) 299 NIM + Fee & other income 271 186 (38
Slide 71: Infrastructure Finance (ex IDF) – Key ratios
Infrastructure Finance (ex IDF) – Key ratios Key Ratios Q1FY20 Key Ratios Q4FY20 Q1FY21 10.46%* Yield 9.98% 10.02% 2.59% Net Interest Margin 2.74% 2.06% 1.41% Fee & Other Income 0.79% 0.42% 4.00% NIM + Fee & other income 3.53% 2.48% 0.60% Operating Expenses 0.67% 0.54% 3.40% Earnings before credit c
Slide 72: Infrastructure Finance (ex IDF) - Asset quality
Infrastructure Finance (ex IDF) - Asset quality Infrastructure Finance- Asset Quality 55% 60% 63% 18% 16% 3,569 14% 12.48% 12% 2,568 2,564 10% 9.02% 9.09% 1,594 8% 6% 1,036 956 5.98% 4% 3.85% 3.59% 2% 0% Q1FY20 Q4FY20 Q1FY21 GS3 (Rs. Cr) NS3 (Rs. Cr) GS3 (%) NS3 (%) PCR (%) In addition to above; Cov
Slide 73: IDF – Summary financial performance
IDF – Summary financial performance Performance Summary Q1FY20 Summary P&L (Rs. Cr ) Q4FY20 Q1FY21 Y-o-Y (%) 233* Interest Income 214 213 (9%) 155 Interest Expense 173 175 13% 78 NIM 41 38 (51%) 5 Fee & Other Income 13 12 122% 83 NIM + Fee & other income 55 50 (40%) 9 Operating Expense 10 9 (8%) 74
Slide 74: IDF – Key ratios
IDF – Key ratios Key Ratios Q1FY20 Key Ratios Q4FY20 Q1FY21 11.27%* Yield 9.60% 9.53% 3.78% Net Interest Margin 1.85% 1.71% 0.26% Fee & Other Income 0.59% 0.53% 4.04% NIM + Fee & other income 2.45% 2.23% 0.45% Operating Expenses 0.45% 0.38% 3.59% Earnings before credit cost 2.00% 1.85% 0.01% Credit
Slide 75: IDF - Asset quality
IDF - Asset quality IDF - Asset Quality Asset Quality Q1FY20 Q4FY20 Q1FY21 Gross Loans & 8,253 8,756 9,090 Advances GS3 (%) Nil Nil Nil 61 GS3 - Gross Stage 3
Slide 76: Infrastructure Finance – Portfolio wise split
Infrastructure Finance – Portfolio wise split D I Sectors (Rs. Cr) Q1FY20 Q4FY20 Q1FY21 Y-o-Y (%) S Renewable Power 1,845 1,159 994 (46%) B U Roads 263 412 64 (76%) R S Power Transmission 1,030 110 10 (99%) E M Others1 114 210 22 (81%) E N T Total 3,252 1,891 1,089 (67%) Q1FY20 Q4FY20 Q1FY21 Sectors
Slide 77: AUM disclosure – Investment Management Business
AUM disclosure – Investment Management Business Assets under Management (Rs. Cr) Quarter ended Jun, 2019 Quarter ended Mar, 2020 Quarter ended Jun, 2020 Fund Type AUM1 Avg. AUM2 AUM1 Avg. AUM2 AUM1 Avg. AUM2 Equity 38,293 38,038 25,664 34,698 30,453 28,279 (Other than ELSS) Equity – ELSS 3,385 3,337
Slide 78: Product profile and Geographies
Product profile and Geographies ATS ATS Avg Tenor BUSINESS Major Geographies on o/s book on qtrly disb on disb Farm MP, Karnataka, UP, Bihar, Telangana, Rs. 3.0 Lakhs Rs. 4.3 Lakhs 46 months Equipment Maharashtra, AP, Haryana Two Kolkata, Pune, Mumbai, Bangalore, Rs. 37k Rs. 63k 27 months Hyderabad,
Slide 79: LTFH branch footprint
LTFH branch footprint 9 2 As of 30th June, 2020 11 1 No. of States & Union 21 & 1 18 Territories 14 4 10 No. of branches* 218 3 No. of Micro Loans meeting 17 30 13 1 1,422 centers** 7 7 No. of employees 22,476 26 9 1 12 13 6 3 *Also includes 1 branch in Dubai 65 **All these are in rural areas
Slide 80: Corporate Social Responsibility
Corporate Social Responsibility Directly linked to creating value FOCUS: GENERATION OF SUSTAINABLE RURAL LIVELIHOODS Digital financial inclusion Water resource management • Pogramme scaled to 138 new villages with 350 additional Digital Sakhis with • De-silting of 30,000 cubic meter undertaken to he
Slide 81: Awards & Recognition
Awards & Recognition Business Standard Social Excellence Award 2019 Corporate Social Responsibility Award Golden Peacock Award Most Socially Aware Corporate Corporate Social Responsibility Women Empowerment of the Year (March, 2020) (March, 2020) (March, 2020) The Asset Triple A The Asset Triple A A
Slide 82: Board comprises majority of Independent Directors
Board comprises majority of Independent Directors Board of Directors S. V. Haribhakti, Non-Executive Chairman, Independent Director Dinanath Dubhashi, Managing Director & CEO o Chairman of Future Lifestyle Fashions Limited, Blue Star Limited & o 29 years of experience across multiple domains in BFSI
Slide 83: Management Team
Management Team Dinanath Dubhashi Managing Director & CEO 29 yrs exp, BNP Paribas, SBI Cap, CARE Kailash Kulkarni Srikanth J Sunil Prabhune Raju Dodti CE - Investment Management & CE – Housing & CE – Rural & CE – Infrastructure Finance Group Head - Marketing Group Head – Central operations Group Hea
Slide 84: Deliver sustainable RoE
Deliver sustainable RoE Registered Office: L&T Finance Holdings Limited Brindavan, Plot No 177 CST Road, Kalina Santacruz (E), Mumbai 400 098 www.ltfs.com T +91 22 6212 5000/5555 CIN: L67120MH2008PLC181833 70
L&T Finance Holdings — Q1 FY2021 Earnings Presentation on 6ix