Indostar Capital Finance Limited · NSE:INDOSTAR
Indostar Capital Finance — Q4 FY2018 Earnings Presentation
22 slides from Indostar Capital Finance's earnings presentation, May 30, 2018
Slide 1: Q4 & FY18 Results Update
INDOSTAR CAPITAL FINANCE LIMITED Q4 & FY18 Results Update 30 May 2018
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”) have been prepared by IndoStar Capital Finance Limited (“IndoStar” or the “Company”) solely for information purposes and do not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or
Slide 3: Discussion Summary
Discussion Summary Business Overview Leadership team Shareholding Structure Q4 & FY18 Results Update
Slide 4: Quick Snapshot
Quick Snapshot 1. First Indian NBFC promoted by Global Investors 6. Robust Risk Management & • Inception in 2011, sponsored by Everstone Capital Scalable Technology Platform and other marque investors • Strong credit underwriting processes, robust • IPO for INR 18.44 Bn [Fresh Issue INR 7,000 Mn, mo
Slide 5: Brief History of IndoStar
Brief History of IndoStar Successfully forayed into SME; Expanding Established a strong Corporate Lending Started operations in a challenging into Vehicle & Housing Finance platform credit environment 2015 onwards 2013 - 2014 2011 - 2013 14,532 26,329 8.4 9.9 9.4 6,501 Inflation % % % 18,329 2,232 7
Slide 6: Strong Performance Track Record
Strong Performance Track Record AUM (INR Mn) PAT (INR Mn) NIM (%) CAGR: 24% 62,073 CAGR: 19% 2,244 14.6% 14.3% 14.5% 2,108 13.8% 1,916 12.9% 52,359 42,651 1,490 10.3% 12.1% 11.9% 8.8% 34,292 11.1% 1,121 26,329 6.6% 6.5% 6.8% 6.3% 6.0% FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16
Slide 7: Retail Lending acceleration for Long Term Growth
Retail Lending acceleration for Long Term Growth Corporate Lending and Vehicle Finance will be the Primary Growth Engines Housing Finance and SME Lending will offer strategic leverage Vehicle Finance Housing Finance SME Lending • Focus area: Businessmen, traders, • Focus area: Used CV (5 – 12 years)
Slide 8: Discussion Summary
Discussion Summary Business Overview Leadership team Shareholding Structure Q4 & FY18 Results Update
Slide 9: Entrepreneurial Leadership with Strong Sponsor Backing
Entrepreneurial Leadership with Strong Sponsor Backing Several years of experience and in-depth understanding of the specific industry and geographic regions Separate business & credit heads for each vertical Strong alignment through large ESOP program (10.5% of diluted shares) c.3 decades o
Slide 10: Entrepreneurial Leadership with Strong Sponsor Backing (cont'd)
Entrepreneurial Leadership with Strong Sponsor Backing (cont’d) 14 committees composed of independent and non-independent directors and also employees1 Distinct and delineated responsibilities to ensure good corporate governance Strong capital sponsorship also providing access to best industry
Slide 11: Discussion Summary
Discussion Summary Business Overview Leadership team Shareholding Structure Q4 & FY18 Results Update
Slide 12: Shareholding Pattern
Shareholding Pattern % Shareholding – March 2018 Major Shareholders 25 May 2018 9.3% Promoter & Promoter Group 5.0% Management Team and Employees* SBI Mutual Fund Lenarco BNP Paribas Arbitrage SBI Life Insurance 90.7% ICICI Prudential Life Insurance Sponsors Employees Others SBI Amundi Funds Fidelit
Slide 13: Promoters Shareholding Structure
Promoters Shareholding Structure Everstone1 51.24 % 100.0% 57.71%4 IndoStar Capital Indostar Capital3 Finance Limited (Promoter) (Issuer entity) 48.76 % Other Investors2 Strong capital sponsorship of Everstone Group India and SEA US$4.0bn 6 ‘Private Equity Firm of the Year in India’ focused AuM for
Slide 14: Discussion Summary
Discussion Summary Business Overview Leadership team Shareholding Structure Q4 & FY18 Results Update
Slide 15: FY18: Consolidated Result Highlights
FY18: Consolidated Result Highlights Disbursements AUM NIM NNPA INR 53,884 Mn INR 62,073 Mn 6.3 % 1.1 % (+ 10% YoY) (+ 19% YoY) Debt / Equity PAT Networth ROAA 3.5% 2.26 INR 2,244 Mn INR 21,372 Mn ROAE 11.1% Capital Adequacy (+ 6% YoY) 28.3% AUM Breakup BVPS INR 271.63 Branches 91 Total Customers Co
Slide 16: Q4 & FY18: Consolidated Profit & Loss Statement
Q4 & FY18: Consolidated Profit & Loss Statement Particulars (Rs Mn) Q4 FY18 Q4 FY17 QoQ % Q3 FY18 QoQ % FY18 FY17 YoY % Interest Income 1,882 1,646 14% 1,715 10% 7,031 6,436 9% Interest Expense -954 -772 24% -778 23% -3,244 -3,118 4% Net Interest Income 929 874 6% 937 -1% 3,787 3,317 14% Fee Income
Slide 17: Q4 & FY18: Consolidated Balance Sheet
Q4 & FY18: Consolidated Balance Sheet Particulars (Rs Mn) March-18 March-17 YoY % Equity & Liabilities Equity 21,371 19,028 12% Borrowings 48,228 33,733 43% Other Liabilities & Provisions 3,365 2,127 58% Total Equity & Liabilities 72,964 54,888 33% Assets Loans * 62,073 52,359 19% Investments 7,931
Slide 18: Q4 & FY18: Consolidated Result Highlights
Q4 & FY18: Consolidated Result Highlights AUM (Rs Mn) Gross Loan Disbursements (Rs Mn) 62,073 62,073 53,884 49,034 52,359 52,359 51,717 40,976 42,651 21,830 14,285 14,694 FY16 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 FY16 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 AUM Breakup: Corporate Vs. Retail (%) Disbursement
Slide 19: Q4 & FY18: Consolidated Result Highlights
Q4 & FY18: Consolidated Result Highlights NIM Analysis (%) Cost to Income Ratio (%) 14.5% 13.8% 12.9% 13.3% 12.7% 12.0% 33.9% 34.4% 29.6% 11.1% 10.3% 9.7% 8.8% 8.6% 8.4% 17.8% 18.9% 16.4% 6.5% 6.8% 6.3% 7.1% 6.9% 6.0% FY16 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 FY16 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 Yiel
Slide 20: Q4 & FY18: Consolidated Result Highlights
Q4 & FY18: Consolidated Result Highlights Number of Branches Number of Customers 91 91 3,428 3,428 43 1,254 7 7 196 474 474 3 FY16 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 FY16 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 Number of Employees 1,094 1,094 531 74 93 93 FY16 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 19
Slide 21: Q4 & FY18: Diversified Borrowing Profile
Q4 & FY18: Diversified Borrowing Profile Borrowing Mix % - March 2017 Borrowing Mix % - March 2018 CPs Others 5% NCD 21% 25% NCD CPs 33% 26% Banks Banks 46% 44% Strong Credit Ratings Overall Cost of Borrowing (COB %) 11.1% Borrowing Type Rating Firm FY18 - Ratings 10.3% 8.8% Term Loans INDIA RATINGS
Slide 22: For Further Queries:
For Further Queries: Pankaj Thapar Nilesh Dalvi CFO IR Consultant Contact No: +91 22 4315 7036 Contact No: + 91 9819289131 Email – pthapar@indostarcapital.com Email – nilesh.dalvi@dickensonir.com Ravindra Bhandari IR Consultant Contact No: 9283614197 Email: ravindra.bhandari@dickensonir.com
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