Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — Q3 FY2014 Earnings Presentation
35 slides from Sammaan Capital's earnings presentation, Jan 22, 2014
Slide 1: Indiabulls Housing Finance Limited Unaudited Financial Results – Q3 FY 2013-14
Indiabulls Housing Finance Limited Unaudited Financial Results – Q3 FY 2013-14 January 22, 2014
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document contains certain forward-looking statements based on current expectations of Indiabulls management. Actual results may vary significantly from the forward-looking statements in this document due to various risks and uncertainties. These risks and uncertainties in
Slide 3: Contents
Contents Pg. No. 1. Business Update 5 2. Indian Mortgage Market 9 3. Financial and Operational Highlights 13 4. Valuations and Shareholding 29 5. Detailed Financials 32 3
Slide 4: Our Journey
Our Journey Conversion to HFC 2012-13 India’s 3rd largest HFC by size PAT Rs.1266 cr. Balance sheet: Rs. 39,128 cr. RoE: 25.6% 2011-12 Credit rating upgraded to AA+. PAT crosses Rs.1000 cr . Balance sheet crosses Rs. 30,000 cr 2010 - 11 RoE: 21.9%. Credit rating upgraded to AA.
Slide 5: Business Update
Business Update 5
Slide 6: Business Update
Business Update Year-on-Year (Y-o-Y) Comparison – Key Financial Highlights Q3 FY13-14 v/s Q3 FY12-13 Q3 FY 13-14 Q3 FY 12-13 Growth (%) Total Revenues (Rs. Cr.) 1,574.6 1,215.1 29.59% NII (Rs. Cr.) 659.0 539.7 22.10% PBT (Rs. Cr.) 536.2 432.9 23.86% PAT (Rs. Cr.) 395.1 327.2 20.75% EPS (Rs.) 11.9 10
Slide 7: Business Summary
Business Summary • Loans Outstanding : Rs. 39,069 Cr (December 31, 2013) : (US$ 6.30 bn) • Loan Book CAGR (5 years) : 26% • Cumulative Loans given to retail Customers : 5.84 Lakh (up till 31st December, 2013) • Cumulative Loans Disbursed till date : Rs. 82,400 Cr (up till 31st December, 2013) (US$ 1
Slide 8: Country-wide Reach
Country-wide Reach Number of Outlets FY10 140 Tier I 58 FY11 163 Tier II 89 FY12 180 Tier III 58 FY13 200 Total 205 Q3 FY14 205 8
Slide 9: Indian Mortgage Market
Indian Mortgage Market 9
Slide 10: Headroom for Growth - Low Mortgage Penetration
Indian Mortgage Market Headroom for Growth - Low Mortgage Penetration 101% 84% 76% 42% 45% 34% 19% 14% 8% India China Thailand Malaysia Hong Kong Germany USA UK Denmark Source: European Mortgage Federation, 2011, HOFINET, 2011 & market estimates for India • Lower mortgage penetration compared to adv
Slide 11: Growing HFC Market Share in a Steadily Expanding Home Loans Market
Indian Mortgage Market Growing HFC Market Share in a Steadily Expanding Home Loans Market 12,000 45% 40% 10,000 37% 40% 35% 8,000 Rs. Billion 32% 35% 6,000 30% 27% 27% 30% 4,000 2,000 25% 3,695 3,990 4,541 5,448 6,249 7,110 10,958 - 20% FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 16E Home Loan Portfolio
Slide 12: Tax Incentives – Low Effective Interest Rates
Indian Mortgage Market Tax Incentives – Low Effective Interest Rates Particular 2013 2010 2000 Loan Amt (Rs) 2,500,000 2,500,000 2,500,000 Nominal Interest Rate(%) 10.25% 9.25% 13.25% Max deduction for interest allowed * 250,000 150,000 75,000 Deduction Principal 100,000 100,000 20,000 Tax Rate appl
Slide 13: Financial and Operational Highlights
Financial and Operational Highlights 13
Slide 14: Balance Sheet Assets
Balance Sheet Assets 6% 15% Loans: 79% Cash & Liquid Investments*: 15% Other Assets: 6% 79% Total Assets As at Dec 31, 2013 Rs. Cr. 43,819 (US$ 7.07bn) As at Dec 31, 2012 Rs. Cr. 36,724 (US$ 5.92bn) * Cash, Cash Equivalents and Investments in Liquid Debt Instruments US $ amounts are converted based
Slide 15: Loan Book Growth
Loan Book Growth Total Loan Assets (Rs. Cr.) Loans Sold (Rs. Cr.) (in preceding 12 months) 39,069 4,058.9 32,551 25,081 1,868.7 1,263.5 Dec-11 Dec-12 Dec-13 Dec-11 Dec-12 Dec-13 • The growth in the loan book inclusive of loans sold in the previous 12 months is 20% • Loans sold (outstanding as on 31s
Slide 16: Asset Composition
Asset Composition Q3 FY 13-14 Q3 FY 12-13 21% 21% 6% 8% 73% 71% • Home loans, which forms the majority of incremental disbursals, are disbursed at an average ticket size of Rs. 24 lacs; average LTV of 68% (at origination) 16
Slide 17: Mortgage Loans' Sourcing
Mortgage Loans' Sourcing 75% of Mortgage loans are sourced in-house 20% 5% 8% 67% DST Branch Walk-ins Bank Tie-ups DSA 17
Slide 18: Conservative Home Loan Profile
Conservative Home Loan Profile Average Loan Size 24 Lacs Maximum Loan to Value 80% Average Loan to Value 68% (at origination) Average Loan Term 13 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing 18
Slide 19: Conservative Loan Against Property Profile
Conservative Loan Against Property Profile Average Loan Size 65 Lacs Maximum Loan to Value 65% Average Loan to Value 48% (at origination) Average Loan Term 7 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing 19
Slide 20: Asset Quality
Asset Quality (as % of Total Loan Book) 0.85% 0.88% 0.78% 0.48% 0.44% 0.44% 0.41% 0.40% 0.34% Q1 FY14 Q2 FY14 Q3 FY14 Gross NPA General & Specific Provisions Net NPA • NPA’s continue to remain within the target range despite a prolonged depressed economic environment and a resultant weak phase of th
Slide 21: Liabilities
Liabilities 6% 13% Share Holder’s Funds: Rs. 5,585 Cr. (US$ 0.90 bn) Borrowings: Rs. 35,539 Cr. (US$ 5.73 bn) Other Liabilities: Rs. 2,695 Cr. (US$ 0.43 bn) 81% Total Liabilities: As of December 31, 2013: Rs. 43,819 Cr. (US$ 7.07 bn) As of December 31, 2012: Rs. 36,724 Cr. (US$ 5.92 bn) US $ amounts
Slide 22: Diversified Borrowing Programme
Diversified Borrowing Programme 9% 8% 8% 23% 29% 29% Bank Loans Bonds 68% 63% 63% Commercial Paper Dec-11 Dec-12 Dec-13 Total Borrowings: As of December 31, 2013: Rs. Cr. 35,539 (US$ 5.73 bn) As of December 31, 2012: Rs. Cr. 29,268 (US$ 4.72 bn) US $ amounts are converted based on the exchange rate
Slide 23: Diversified Borrowing Programme
Diversified Borrowing Programme Borrowings (Rs. Cr.) 35,539 29,268 23,984 5.29 4.49 3.73 Dec-11 Dec-12 Dec-13 Borrowings Net Gearing Net Gearing: Borrowings Net of ‘Cash & Cash Equivalents’ and ‘Investments in Liquid Debt Instruments’ Contribution in Incremental Total Borrowings (Rs. Cr.) Borrowing
Slide 24: Optimally Matched Balance Sheet
Optimally Matched Balance Sheet Maturity Profile (As of March 31,2013) 14,492 * 13,614 13,920 13,454 11,480 10,136 Up to 1 yr 1 - 5 yrs Over 5 yrs Assets Liabilities (Amounts in Rs. Cr.) • * Assets in the ‘Up to 1 Yr’ bucket includes Rs. 7,180.9 Cr. of Cash, Cash equivalents and investments in liqui
Slide 25: Our Strengths
Our Strengths Home Loan Strengths • In-house sourcing & collection teams – low and stable NPA levels • Low average loan to value ratios • Emphasis on borrower cash flow stability during loan appraisal • Experienced underwriting team - company has cumulatively disbursed approx. Rs. 82,400 Cr since FY
Slide 26: Home Loans: Expanding Regional Reach
Home Loans: Expanding Regional Reach • The company is widening the scope of its reach by launching regional language campaigns in the states of Gujarat, Karnataka, Maharashtra, Orissa and Andhra Pradesh • The company also rolled out its flagship Aawas -2013 property shows across Tier II and Tier III
Slide 27: Rising Productivity Ratios
Rising Productivity Ratios FY 2013 FY 2012 FY 2011 No. Of Employees 4,072 4,243 4,512 No. Of Outlets 200 181 163 Profit Per employee (Rs. Cr.) 0.31 0.24 0.17 Asset Per employee (Rs. Cr.) 8.09 5.85 3.71 Cost Income Ratio 18.0% 18.7% 23.4% 27
Slide 28: Key Financial Metrics
Key Financial Metrics FY 2013 FY 2012 FY 2011 Pre Tax ROAA (%) 4.9% 4.9% 5.5% Post Tax ROAA (%) 3.8% 3.7% 4.1% ROE (%) 25.6% 21.9% 17.2% Capital Adequacy (%) 18.47% 18.86% 20.09% - Of which Tier I 14.96% 18.21% 19.89% - Tier II 3.51% 0.65% 0.20% 28
Slide 29: Valuations and Shareholding
Valuations and Shareholding 29
Slide 30: Valuations and Returns
Valuations and Returns Dec-13 Mar-13 Mar-12 Mar-11 Market Price per share (Rs.) 238.5* 271.8 207.1 154.8 Dividend per share (Rs.) 20 20 13 10 Market Capitalisation (US$ Bn) 1.28 1.37 1.04 0.78 PE Ratio (times) 5.2 6.8 6.5 6.5 Book Value per share (Rs.) 167 165 158 146 Price to Book Ratio (times) 1.4
Slide 31: Shareholding Pattern
Shareholding Pattern 13.9% 3.4% 41.5% 41.2% Promoters Foreign Shareholding MFs/Banks/IFI Public MF: Mutual Funds IFI: Indian Financial Institutions 31
Slide 32: Detailed Financials
Detailed Financials 32
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. 6,746.87 Cr of Cash & Cash Equivalents and Investments in Liquid Debt Instruments 33
Slide 34: Consolidated Income Statement
Consolidated Income Statement 34
Slide 35: Thank you
Thank you
Indiabulls Housing Finance — Q3 FY2014 Earnings Presentation on 6ix