Can Fin Homes Ltd. · NSE:CANFINHOME
Can Fin Homes — Q2 FY2024 Earnings Presentation
37 slides from Can Fin Homes's earnings presentation, Oct 17, 2023
Slide 1: Submission of Investor Presentation - Post Q2 FY24 results
CAN FIN HOMES LIMITED Registered Office No. 29/1, 1st Floor, Sir M N Krishna Rao Road Near Lalbagh West Gate, Basavanagudi Bengaluru – 560 004 Tel: 080-48536192; Fax: 26565746 e-mail: compsec@canfinhomes.com Web: www.canfinhomes.com CIN – L85110KA1987PLC008699 CFHRO SE CS LODR 280/2023 October 17, 2
Slide 2: Investor Presentation Q2FY24
Investor Presentation Q2FY24 35 years of vision, passion and progress Offering home loans since 1987….. and it is just a beginning October 2023
Slide 3: Legacy, Focus, Reach, Financials, Vision
Legacy Focus Reach Financials Vision • 35 year old • To promote home • Headquartered in (Q2FY24) • To increase lending institution registered ownership across Bengaluru • Net Int Income: to new home as a deposit taking India, with a motto • Rs.316.77 Cr aspirants, enhance HFC with NHB of friendship
Slide 4: Journey of Can Fin Homes
JOURNEY OF CAN FIN HOMES ET Edge 2015 Promising 2021 Brand Award to Can Fin Homes Ltd. 1989 11 more branches Rights issue of CFHL are added, including – mCap over New Delhi 1991 Loan book crossed Rs. 1000 Cr Rs. 100 Cr Successful completion of 35 Years Loan book over 2016 100th branch at Begur, Rs.
Slide 5: Reinforce
Reinforce The Company’s reliance on the crucial parameters of growth, asset quality, profitability, liquidity, backed by good governance and due diligence will continue. The commitment to basic, underlying principles of ethics, integrity, sincerity, customer-centricity, fairness, team work and the s
Slide 6: Rebuild
Rebuild The reliance on digital platforms has increased phenomenally over the past few years. With rapidly evolving business requirements and the need to remain relevant amidst change, we are striving hard to improve our digital presence and shore up our infrastructure for accommodating agile and in
Slide 7: Reach Higher
Reach Higher In order to facilitate its upward trajectory, the Company intends to expand its sourcing channels to optimally reach its target segment of borrowers. It is proposed to introduce new products such as Green Housing which will align with Can Fin’s commitment to conduct its business in an e
Slide 8: Our Strengths
II Our Strengths • Consistent support from the sponsor, Canara Bank. • Expertise gained over 35 years in housing 1989 finance. • Eminent personalities with rich experience on the board. • Quick, hassle free and customer friendly lending process. • Transparent and timely updation to stakeholders. 201
Slide 9: Board of Directors
Chairman (Promoter) Managing Director & CEO Director (Promoter) Director (Independent) Director (Independent) Director (Independent) Director (Independent) Director (Independent Deputy Managing Director www.canfinhomes.com 8
Slide 10: Senior Management
Chief Financial Officer General Manager Company Secretary Total Exp: 14+ Years Total Exp: 36 Years Total Exp: 20 Years Service in Can Fin - 9 Months Service in Can Fin - 33 Years Service in Can Fin – 01 month Head - Collections Head – Products & Strategy Head – Credit Total Exp: 30 Years Total Exp:
Slide 11: Lending process: lead generation to disbursement
Lead Generation Through Website, Customer Referral, Direct marketing and DSA channel. Due Diligence CKYC-UIDAI linked verification; Bank account verification through PERFIOS; Field verification of residence, employment, property in each proposal; PAN verification; Online ITR verification through web
Slide 12: Documentation, collection and monitoring
Documentation Pre-filled System Generated documents - ready for Execution. Storage of Loan Centralised Document Storage at 3 different location Pan India. Dockets Collection Through E -NACH, Salary deduction. Option for online Payment. Monitoring Data mining for EWS Monthly OTMS reports Cluster Risk
Slide 13: Digital focus areas
In order to ensure uninterrupted services to our customers, even during challenging times like today, we leveraged various advanced digital tools and technologies. These enabled us to reach more customers, across the length and breadth of the country, improve our efficiency and tide through challeng
Slide 14: Q2FY24 Highlights
1. Loan Book reached Rs. 33359 Cr 7. Gross NPA 0.76% & Net NPA 0.43%. (+16% YoY) with a clientele base of 2.53 lakh. 8. The Salaried and Professional segment constitutes 72% of the 2. NII: Rs. 316.77 Cr, PBT: Rs.197.99 Cr outstanding loan book as on and PAT: Rs.158.07 Cr. Sep 23. Housing forms 89% o
Slide 15: Year on Year and Sequential
Amount Rs. in Crore Sl. Year on Year and Sequential Particulars No. Sep’23 (3m) Sep’22 (3m) Jun’23 (3m) 1 New Approvals 2123 2348 2071 2 Disbursements 2019 2245 1966 3 Outstanding Loan Book 33359 28823 32505 4 Net Interest Income 316.77 251.17 285.09 5 Operating Profit 270.18 216.08 247.60 6 Provisi
Slide 16: Period Ended - Key Ratios (3m)
Amount Rs. in Crore Sl. PERIOD ENDED Particulars No. Sep’23 (3m) Sep’22 (3m) Jun’23 (3m) 1 Return on Avg Assets (Annualised) 1.86% 2.07% 2.19% 2 Return on Avg Equity (Annualised) 15.96% 16.82% 19.16% 3 Earning Per Share (Rs.) 11.87 10.64 13.78 4 Net Interest Margin (%) 3.80% 3.55% 3.48% 5 Yield on L
Slide 17: Year on Year (As per IND AS) 6m
Amount Rs. in Crore Sl. Year on Year (As per IND AS) Particulars No. Sep’23 (6m) Sep’22 (6m) Growth% 1 New Approvals 4195 4103 2% 2 Disbursements 3986 3967 - 3 Outstanding Loan Book 33359 28823 16% 4 Net Interest Income 601.86 501.57 20% 5 Operating Profit 517.78 431.08 20% 6 Provision for Std Asset
Slide 18: Period Ended - Key Ratios (6m)
Amount Rs. in Crore Sl. PERIOD ENDED Particulars No. Sep’23 (6m) Sep’22 (6m) 1 Return on Avg Assets (Annualised) 2.01% 2.22% 2 Return on Avg Equity (Annualised) 17.24% 18.04% 3 Earning Per Share (Rs.) 25.65 22.82 4 Net Interest Margin (%) 3.62% 3.54% 5 Yield on Loan Portfolio (%) 9.93% 8.55% 6 Cost
Slide 19: Period Ended - With and Without Ambala
*Rs in Cr PERIOD ENDED Sl Particulars No. Sep’23 (3m) (with Sep’23 (3m) (Without Jun’23(3m) Ambala ) Ambala) 1 Profit Before Tax 197.98 237.65 239.90 2 Profit After Tax 158.07 187.76 183.46 3 Return on Assets 1.86% 2.21% 2.19% 4 Return on Equity 15.96% 18.82% 19.16% 5 EPS 11.87 14.10 13.78 www.canfi
Slide 20: Provisions breakdown
*Rs in Cr PERIOD ENDED Sl Particulars No. Sep’23 (3m) Jun’23 (3m) 1 Provision for Std Assets (1.21) 9.05 2 Provision for NPA 16.43 4.66 3 Provision for Ambala 39.67 - 4 Management Overlay 17.28 - Total 72.18 13.71 www.canfinhomes.com 19
Slide 21: DSA sourcing
FY23 Q1FY24 Q2FY24 Active DSA's 1463 1464 1316 Total DSA Sourced Amount(Crores) 7302.23 1667.13 1651.01 % share of total business 82% 85% 82% Share of Top 20 DSA's Amount(Crores) 1010.61 247.35 233.04 % share of total business 11% 12% 11% Geographical Spread of DSA business Core geographies (South)(
Slide 22: Category-wise Product-wise Distribution of Loan Book
CATEGORY-WISE PRODUCT-WISE DISTRIBUTION OF LOAN BOOK Amount Rs. in Crore Sl. Sep - 22 Dec - 22 Mar - 23 Jun - 23 Sep - 23 Particulars No. O/s Amt. O/s Amt. O/s Amt. 0/s Amt 0/s Amt 1 Salaried & Professionals i) Housing Loans 19562 20256 21071 21602 22067 ii) Top-up Personal Loans 852 915 960 990 102
Slide 23: Funding Mix
Funding Mix @ Sep 2023 (as %) Funding Mix @ Sep 2022 (as %) CP Deposits 7% 1% CP Deposits 8% 2% NCD 16% NCD 14% Banks Banks 57% 54% NHB 19% NHB 22% Total Borrowings – Rs. 30628 Crs Total Borrowings – Rs. 26740 Crs www.canfinhomes.com 22
Slide 24: Product Wise Portfolio Break up
Product Wise Portfolio Break up @ Sep 2023 (as %) HL NHL Bifurcation 89% 12% 2% 2% HL 5% Site Loan LAP Loan 79% 11% Topup Loan Other Loan HL NHL OS - Q2FY24 *HL OS is inclusive of CRE www.canfinhomes.com 23
Slide 25: Category shareholding
SI No. Category shareholding as % 3.37 9.55 29.99 1 Promoter 29.99 11.36 2 Mutual Funds 26.29 3 Individual 19.44 4 Foreign Corporate Bodies 11.36 19.44 5 Bodies Corporate 9.55 26.29 6 Others 3.37 7 Grand Total 100.00 Promoter Mutual Funds Individual Foreign Corporate Bodies Bodies Corporate Others w
Slide 26: Cost and Yield
9.87% 9.84% 9.93% 9.02% 8.11% 7.32% 6.48% 7.51% 7.32% 5.56% Q2 FY 22-23 Q3 FY 22-23 Q4 FY 22-23 Q1 FY 23-24 Q2 FY 23-24 Cost Yield www.canfinhomes.com 25
Slide 27: Spread and NIM
3.55% 3.47% 3.48% 3.37% 3.62% 2.60% 2.55% 2.55% 2.52% 2.36% Q2 FY 22-23 Q3 FY 22-23 Q4 FY 22-23 Q1 FY 23-24 Q2 FY 23-24 Spread NIM www.canfinhomes.com 26
Slide 28: Asset Classification and Provision
Amount Rs. in Crore Provision Balance as on Asset Classification ECL Stages held as per 30 Sep 2023 ECL Model Standard Asset 1 29884 SMA 0 1 1367 SMA 1 2 707 141.46 SMA 2 2 534 Restructured A/c 2 613 NPA 3 254 112.00 Total Portfolio 33359 253.46 Undisbursed Loan Commitment 1165 2.91 Total Provision
Slide 29: Gross NPA, Net NPA and PCR
Gross NPA & Net NPA (%) PCR (Provision excluding management overlay) (%) 51% 52% 47% 0.76 44% 43% 0.62 0.63 0.60 0.55 0.43 0.35 0.34 0.30 0.26 Q2 FY 22-23 Q3 FY 22-23 Q4 FY 22-23 Q1 FY 23-24 Q2 FY 23-24 Q2 FY 22- 23 Q3 FY 22- 23 Q4 FY 22- 23 Q1 FY 23- 24 Q2 FY 23- 24 Net NPA GNPA www.canfinhomes.com
Slide 30: Provision as % of GNPA
Rs. In crore FY23 As % of H1FY24 As % of GNPA GNPA Gross NPA 174 254 A. ECL Provision 91 52% 112 44% (Stage 3) B. Management 17 34 Overlay Total Provision 108 62% 160 63% available (A+B) C. Prov for 68 68 Restructured Pool Total Provision 176 101% 214 84% available (A+B+C) www.canfinhomes.com 29
Slide 31: NPA amount and restructured accounts
300 * Amt in Crs 250 NPA Amount NPA% 64.18 Quarter Without Only Without Only 200 19.50 Restructur Restructur Restructur Restructur 1.40 1.66 ed accts ed ed accts ed 150 Q3FY23 179.74 1.40 0.60% 0.005% Q4FY23 172.19 1.66 0.55% 0.005% 100 190.27 179.74 185.68 172.19 Q1FY24 185.68 19.50 0.57% 0.06% Q2F
Slide 32: Branches and outstanding by region
No. of Branches Outstanding (%) 123 71.95% 27 30 13.15% 11.18% 8 8 2.20% 1.52% Central East North South West Central East North South West www.canfinhomes.com 31
Slide 33: Incremental Sanctions and Disbursement by region
Incremental Sanctions (%) Incremental Disbursement (%) 79.54% 78.58% 78.14% 78.19% 10.69% 7.78% 10.33% 8.28% 9.93% 10.55% 2.02% 6.96% 2.14% 1.06% 7.58% 1.98% 0.93% 2.04% 1.59% 1.69% Central East North South West Central East North South West Sep-22 Sep-23 Sep-22 Sep-23 www.canfinhomes.com 32
Slide 34: Recent initiatives and implementations
Centralized Disbursement Implemented from 03/10/2023 Online Lead sourcing Pilot project on Online lead sourcing implemented in Sept-23 Centralized Reconciliation Implemented from 01/08/2023 CRM All branches covered from 01/10/2023 Litigation Management Implemented from 22/08/2023 Software Quarterly
Slide 35: Risk and control initiatives
✓ RCSA ✓ Fraud control unit will be augmented. ✓ Software for outsourced activity (Valuation) ✓ Online Reconciliation. www.canfinhomes.com 34
Slide 36: Branch offices (208)
(208 BRANCH OFFICES) • Punjab – Jalandhar • Odisha – Bhubaneshwar, • Telangana – Hyderabad (13 Berhampur, Jharsuguda branches), Siddipet, Warangal, • Chandigarh Karimnagar, Khammam, • Bihar – Patna Mancherial, Nizamabad • Rajasthan – Alwar, Jaipur, Mansarovar, Kota, Udaipur, • Tamilnadu – Hosur, Che
Slide 37: For Further Information: Please Contact
The forward looking statements and projections, if any, contained in this presentation are predictions and involve known and unknown risks, uncertainties and other factors including the future changes or developments, the competitive environment, ability to implement the strategies and initiatives,