Iifl Finance Limited · NSE:IIFL
Iifl Finance — Q1 FY2023 Earnings Presentation
42 slides from Iifl Finance's earnings presentation, Jul 27, 2022
Slide 1: Exchange cover letter: press release and presentation on Q1FY23 results
IIFL FINANCE July 27, 2022 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot C/1, G Block, Dalai Street, Bandra - Kuria Complex, Bandra (E), Mumbai 400 001. Mumbai 400 0
Slide 2: IIFL Finance Q1FY23 Results update (press release)
IIFL Finance Limited Press Release For immediate publication Mumbai, India July 27, 2022 IIFL Finance Q1FY23 Results update IIFL Finance Q1FY23 profits at Rs. 330 Crore, up 24% y-o-y. For the quarter ended June 30, 2022, the Company reported Total comprehensive income (TCI) of Rs. 332 Cr up 33% y-o-
Slide 3: Management remarks and financial performance review
Mr. Nirmal Jain, Managing Director, IIFL Finance Ltd., remarked on the financial results: “FY23 has begun well. Credit demand for retail loan products is picking up. Hike in interest rate till now, has not had any significant impact on credit demand or performance. India’s macro economy has been res
Slide 4: Construction and Real Estate; liquidity position; IIFL OPEN joint venture
Construction and Real Estate: Construction and real estate AUM stood at Rs. 2,487 Cr, down 11% y-o-y and 14% q-o-q as at June 30, 2022. Liquidity position Cash and cash equivalents and committed credit lines from banks and institutions of Rs 5,520 Cr were available as on June 30, 2022. During the qu
Slide 5: Appointment of Head of Legal; awards and accolades
Appointment of Mr. Mohit Kapoor as Head of Legal IIFL Finance has appointed Mr. Mohit Kapoor as Head of Legal. In his overall experience of 29 years, he was working as a Group Executive Vice President and Head Legal with RBL Bank Ltd. He was also associated with Religare Finvest, Hewitt, Max Life In
Slide 6: About IIFL
About IIFL IIFL Group is one of the leading players in the Indian financial services space. Prior to the Composite Scheme of Arrangement (effective May 2019), IIFL Finance Limited (Erstwhile “IIFL Holdings Limited”) (Bloomberg Code: IIFL IN, NSE: IIFL, BSE: IIFL) was engaged in the business of finan
Slide 7: Performance review Q1FY23
Performance review Quarter ended June 30, 2022 (Q1FY23) Bloomberg: IIFL IN IIFL Finance Limited July 27, 2022
Slide 8: Financial Performance Q1FY23, Business Segment Overview, Corporate Strategy and Others
Financial Performance Q1FY23 3-13 - Highlights 3-4 - Results 5-7 - Financial trends 8-10 - Asset Quality 11 - Liquidity 12-13 Business Segment Overview 15-23 Corporate, Strategy and Others 25-35 2
Slide 9: Q1FY23 Performance snapshot
Q1FY23 Performance snapshot Q1FY23 PAT 330 Crore (up 24% yoy); RoE at 20.5% Profit growth Loan growth PPOP1 at 674 Cr; up 32% yoy Loan AUM at 52,761 Cr; up 22% yoy Profit after tax at 330 Cr.; up 24% yoy Core Loan AUM 49,667 Cr; up 26% yoy TCI2 at 332 Cr.; up 33% yoy Non-Core Loan AUM 3,094 Cr; down
Slide 10: Q1FY23 Key highlights
Q1FY23 Key highlights Pre provision operating profit grew by a healthy 32%, but with higher provisions, PAT growth was 24%. Total Comprehensive Income (TCI) was up 33%. Profit Growth & ROE RoE for the quarter, annualized was 20.5%. Q1 of the financial year is seasonally slack for some core products,
Slide 11: Q1FY23 Results (Consolidated)
Q1FY23 Results (Consolidated) Net profit up 24% yoy, income up 44% yoy Cr Q1FY23 Q1FY22 Y-o-Y Q4FY22 Q-o-Q Interest income 1,451.3 1,245.0 17% 1,423.4 2% Interest expense (776.0) (700.9) 11% (773.2) 0% Net interest income 675.3 544.1 24% 650.2 4% Non-fund based income 513.7 280.4 83% 488.3 5% Total
Slide 12: Income Analysis (Consolidated)
Income Analysis (Consolidated) Non fund income covers almost entire operating cost Cr Q1FY23 Q1FY22 Y-o-Y Q4FY22 Q-o-Q Loan book using risk capital 32,386 28,599 13% 31,670 2% Securitized book 1,957 4,303 (55%) 2,397 (18%) Loan Book (Ind AS Balance sheet) 34,343 32,902 4% 34,067 1% Assigned assets 1
Slide 13: Consolidated Balance Sheet as at June 30, 2022
Consolidated Balance Sheet as at June 30, 2022 Net Worth at 6,880 Cr ASSETS ₹ Cr LIABILITIES AND EQUITY ₹ Cr 1 Financial Assets 1 Financial Liabilities (a) Cash and Bank Balances 4,576 (a) Payables 185 (b) Receivables 157 (b) Borrowings (c) Loan Assets 34,143 - NCDs 9,983 (d) Investments 2,378 - Oth
Slide 14: Gold loan & home loan account for two thirds of Loan AUM
Gold loan & home loan account for two thirds of Loan AUM 95% of loan portfolio is small ticket retail Portfolio % AUM Y-o-Y Q-o-Q Portfolio average Q1FY23 AUM (₹ Cr) GNPA% NNPA% Share Growth (%) Growth (%) Yield% ticket size (₹ Lakhs) Home Loans 35% 18,618 26% 5% 2.4% 1.6% 10.4% 16.4 Gold Loans 32%
Slide 15: Long term financial trends for the last 5 years
Long term financial trends for the last 5 years Robust financial performance and growth Loan AUM (₹ Cr) Profit after tax (PAT) (₹ Cr) RoA and RoE (%) Quarterly Quarterly Off Book (assignment, securitisation & colending) Annualized RoA RoE On Book 52,761 1,188 51,210 20.6% 20.5% 44,688 17.9% 37,951 1
Slide 16: Key ratios trends for the last 5 years
Key ratios trends for the last 5 years Income, return, asset & leverage ratios Non Fund based Income to Total Income (%) Operating Expenses to Average AUM (%) PPOP to Average AUM (%) Rapid branch expansion 43% 38% 5.2% 5.1% 35% 3.9% 4.9% 34% 4.3% 3.6% 3.5% 22% 22% 3.9% 3.3% 3.6% 2.9% 2.8% FY18 FY19
Slide 17: Long term asset quality trends
Long term asset quality trends GNPA maintained at best in industry level through cycles Gross NPA (%) Net NPA (%) 3.15% 2.58% 1.83% 2.04% 1.98% 1.48% 1.62% 1.74% 0.82% 0.89% 0.58% 0.49% FY18 FY19 FY20 FY21 FY22 Q1FY23 FY18 FY19 FY20 FY21 FY22 Q1FY23 Details of Provision: 0-30 dpd 31-90 dpd 90+ dpd T
Slide 18: Well diversified sources of funding
Well diversified sources of funding Resource profile is well diversified, with increasing share of bank loans Bonds/NCDs investors split (%) Outstanding borrowing (₹ Cr) 24,539 26,141 25,734 28,426 33,340 32,819 Public, 28% Others, 21% CBLO Foreign Bank, 12% 2% Refinance Investor, 25% 12% 13% 15% 16
Slide 19: Our conservative ALM & well covered debt repayment schedule
Our conservative ALM & well covered debt repayment schedule Provide resilience during crisis to not only meet obligations but sustain growth as well Fund raising Credit Rating During the quarter we have raised 1,511 Cr of CRISIL maintains rating at AA (Stable) for IIFL debt including 1,345 Cr via Te
Slide 20: Business Segment Overview
Financial Performance Q1FY23 3-13 Business Segment Overview 15-23 - Home Loan 15-16 - Business Loan 17-18 - Gold Loan 19-20 - Microfinance Loan 21-22 - Construction Real Estate and Capital Markets 23 Corporate, Strategy and Others 25-35 14
Slide 21: Home loans – product overview
Home loans – product overview Small loans for affordable homes, in small towns and suburbs of metros Primary focus on affordable and non-metro Distribution of AUM as at June 30, 2022 (₹ Cr) customers. Uttar Pradesh, Uttarakhand Andhra Pradesh, 12% Telangana 74% of home loans under Priority Secto
Slide 22: Home loans – financial overview
Home loans – financial overview Portfolio Yield (%) Quarterly Disbursement ( in Cr) 10.3% 10.3% 10.4% 2,132 1,814 10.0% 1,596 1,591 9.8% 9.6% 987 FY18 FY19 FY20 FY21 FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 GNPA (%) Salaried and Self Employed Mix (%) Salaried Self Employed 48% 54% 58% 61% 63%
Slide 23: Business loans – product overview
Business loans – product overview Focus on small ticket MSME loans Distribution of AUM as at June 30, 2022 (₹ Cr) For business loans backed by cash flows Sikkim & 7 N.E.States, 1% Bihar, Jharkhand , 1% WB, Chattisgarh, Odisha, 7% Focus on balancing prudent credit underwriting with Punjab, Haryan
Slide 24: Business loans – financial overview
Business loans – financial overview Portfolio Yield (%) Quarterly Disbursements ( in Cr) 16.7% 16.1% 1,385 15.6% 15.6% 15.9% 1,218 970 14.9% 526 358 FY18 FY19 FY20 FY21 FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 GNPA (%) Onboarding Average Ticket Size ( ₹ in Lakhs) 49.0 23.0 6.0% 18.0 5.7% 5.3%
Slide 25: Gold loans – product overview
Gold loans – product overview Secured low-risk short term loans Distribution of AUM as at June 30, 2022 (₹ Cr) Uttarakhand, West Bengal, Andhra 1% Assam, Tripura, In-house loan origination tablet application 7% Pradesh, 6% 2% equipped to screen customers for earlier Telangana, 8% Bihar, UP, Jharkh
Slide 26: Gold loans – financial overview
Gold loans – financial overview Portfolio Yield (%) Quarterly Disbursement ( in Cr.) 19.0% 7,997 18.1% 17.8% 18.0% 17.5% 7,135 17.2% 6,462 5,115 3,718 FY18 FY19 FY20 FY21 FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 GNPA (%) Onboarding Average Ticket Size ( ₹ in 000’) 0.9% 0.9% 69.9 63.5 57.7 56.0
Slide 27: Microfinance loans – product overview
Microfinance loans – product overview Focus on self employed, low income women groups for micro business Distribution of AUM as at June 30, 2022 (₹ Cr) West Bengal Assam & Uttar Pradesh 3% 8% Tripura 1% Small-ticket loans for purpose of income Bihar 17% generation activities Tamil Nadu, Chhattisga
Slide 28: Microfinance loans – financial overview
Microfinance loans – financial overview Portfolio Yield (%) Quarterly Disbursement ( in Cr.) 2,516 24.8% 1,628 23.4% 1,374 22.6% 1,073 22.3% 22.2% 21.9% 236 FY18 FY19 FY20 FY21 FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 GNPA (%) MFI - Non MFI Loan Mix (%) MFI Non MFI 97% 93% 90% 88% 3.9% 3.7% 10
Slide 29: Construction Real Estate (CRE) & Capital Market
Construction Real Estate (CRE) & Capital Market Not core but businesses synergistic to Group’s core businesses CRE Asset Under Management (₹ in Cr) 5,055 4,727 4,355 4,235 Construction and Real Estate (CRE) • IIFL Finance will continue to provide funding for completion of its 2,899 2,487 already fun
Slide 30: Corporate, Strategy and Others
Financial Performance Q1FY23 3-13 Business Segment Overview 15-23 Corporate, Strategy and Others 25-35 24
Slide 31: Retail Lending
We are uniquely placed to dominate non banking retail lending Our business is built on Phygital and Partnership model Retail Lending Strong collateral or cash flow backed loans, in segments with robust growth potential Phygital Partnerships Physical Digital Banks Fintechs Network of 3,500+ Innovativ
Slide 32: IIFL OPEN Fintech Private Limited (51:49) JV
IIFL OPEN Fintech Private Limited (51:49) JV Open IIFL Finance 100th unicorn of India and the largest SMB neobank. • IIFL Finance’s existing lending book and infrastructure to be used by Open Total funding raised of $185mn to offer innovative lending solutions to and backed by strong investors t
Slide 33: Our recent partnerships with banks for co-lending, co-origination and business correspondence
Our recent partnerships with banks for co-lending, co-origination and business correspondence.. Existing Tie-ups New Tie-up (Q1FY23) Gold Loan Home Loan Gold Loan Gold Loan Business Loan Gold Loan Gold Loan Home Loan and MSME LAP Home Loan and MSME LAP Home Loan Gold Loan Home Loan Microfinance Co-L
Slide 34: Our recent new initiatives continues to perform well
Our recent new initiatives continues to perform well Gold Loan at Home a. Gold loan at customer’s doorstep initiative targets branchless expansion of Gold Loan business. b. The initiative started a year ago, saw significant traction with disbursements. c. We have proprietary technology to provide
Slide 35: Distinguished Board of Directors
Distinguished Board of Directors IIFL Finance – Board of Directors Nirmal Jain R Venkataraman A K Purwar Managing Director Joint Managing Director Chairman and Independent MBA, IIM Ahmedabad; MBA, IIM Bangalore; Director Rank holder CA & Cost accountant B-Tech, IIT Kharagpur M Com., Allahabad Univer
Slide 36: Experienced senior management team
Experienced senior management team IIFL Finance IIFL Home Finance IIFL Samasta N Venkatesh Rajesh Rajak Monu Ratra Chief Executive Officer Chief Financial Officer Chief Executive Officer Strategic leadership Chartered Accountant Qualified architect and MBA Program in microfinance at Harvard SVP- hea
Slide 37: Environment, Social & Governance (ESG)
Environment, Social & Governance (ESG) Supporting a sustainable economy through focus on environment.. Adopting environmentally conscious solutions in our business initiatives as well Pioneered Green Building concept in IIFL has signed a US$ 68 million partnership with housing developers loan with A
Slide 38: Promoting financial inclusion
Promoting financial inclusion IIFL is firmly committed to support economic activity and financial inclusion through its loan offerings while adapting to changes in the external environment. 67% of gold loan disbursed are of less than ₹ 50,000 value 76% of the Unsecured MSME loans 57% of loans
Slide 39: ESG: CSR projects continue amid covid with creative use of technology
ESG: CSR projects continue amid covid with creative use of technology Agri-Drone to promote tech-based farming – Rajasthan Development of Botanical Garden (Medicinal) – The Institute of Science Mumbai IIFL Foundation launched Rajasthan's first agriculture drone. The custom made Drone is built The Bo
Slide 40: Governance
Governance conducting our business with integrity Establishing vision, mission and values and determining, reviewing the goals and policies of the Company from time to time Promote sound corporate governance Corporate policies and guidelines: Board Diversity practices, ethical standards, and complia
Slide 41: IIFL's brand and credibility recognized at various forums
IIFL’s brand and credibility recognized at various forums IIFL Finance received ‘Golden Peacock’ IIFL Finance received ‘Brand of the year IIFL Finance was recognized as ‘Brand of Award for Risk Management Award’ at the Great Indian BFSI Award the year Award’ by India Today and Team Marksment IIFL Fi
Slide 42: Thank you
Thank you Published in July 2022 IIFL Finance Ltd. All rights reserved. Regd. Off: IIFL House, Sun Infotech Park, Road No. 16V, Plot No.B-23, Thane Industrial Area, Wagle Estate, Thane – 400604. This report is for information purposes only and does not construe to be any investment, legal or taxatio