Sammaan Capital Ltd · NSE:SAMMAANCAP

Sammaan Capital — Indiabulls Housing Finance — Q3 FY2015 Earnings Presentation

47 slides from Sammaan Capital's earnings presentation, Jan 19, 2015

  1. Slide 1: Indiabulls Housing Finance Limited

    Indiabulls Housing Finance Limited (CIN: L65922DL2005PLC136029) Unaudited Financial Results – Q3 FY 2014-15 January 19, 2015

  2. 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

  3. Slide 3: Contents

    Contents Pg. No. 1. Business Update 4 2. Operational Update 7 3. Indian Mortgage Market 11 4. Financial and Operational Highlights 17 5. Sustained Financial Performance 32 6. Key Ratios, Valuations and Shareholding 39 7. Detailed Financials 44 3

  4. Slide 4: Business Update

    Indiabulls HOME LOANS Business Update

  5. Slide 5: Our Journey

    Our Journey 2013-14  PAT: Rs.1,569 Cr. 2012-13  Loan assets: Rs.41,169 Cr.  RoE: 27%  Conversion to HFC 2011-12  India’s 3rd largest HFC by size  PAT Rs.1,266 Cr., RoE: 26%  Balance sheet: Rs. 39,129 Cr.  Credit rating upgraded to AA+ 2010 - 11  PAT crosses Rs.1,000 Cr.  Balance sheet cros

  6. Slide 6: Business Update: Key Financial Highlights

    Business Update Key Financial Highlights: 9M FY 2014-15 9M FY 14-15 9M FY 13-14 Growth (%) Total Revenues (Rs. Cr.) 5,179.8 4,392.7 17.9% NII (Rs. Cr.) 2,266.6 1,902.6 19.1% PAT (Rs. Cr.) 1,350.2 1,117.0 20.9% EPS (Rs.) 39.4 34.4 Year-on-Year (Y-o-Y) Comparison – Q3 FY14-15 v/s Q3 FY13-14 Q3 FY 14-1

  7. Slide 7: Operational Update

    Indiabulls HOME LOANS Operational Update

  8. Slide 8: Business Summary

    Business Summary • Loans Outstanding : Rs. 48,078 Cr (December 31, 2014) : (US$ 7.75 bn) • Loan Book CAGR (6 years) : 26 % • Cumulative Number of Retail Customers Served : 6.30 Lacs • Cumulative Loans Disbursed till date : Rs. 100,185 Cr (US$ 16.16 bn) • Cost to Income Ratio (FY 2014) : 17% • Profit

  9. Slide 9: Credit Ratings

    Credit Ratings Long Term Short Term Rating Rating CARE Ratings AAA A1+ Brickwork Ratings AAA CRISIL (A Standard & Poor’s Company) AA+ A1+ ICRA (An Associate of Moody’s Investor Service) AA+ A1+ India Ratings & Research (A Fitch Group A1+ Company) 9

  10. Slide 10: Country-wide Reach

    Indiabulls HOME LOANS Country-wide Reach & Denotes cities with 3 or more offices @ Denotes cities with 2 offices ° = Offices 10

  11. Slide 11: Indian Mortgage Market

    Indiabulls HOME LOANS Indian Mortgage Market 11

  12. Slide 12: Vast Affordable Housing Opportunity

    Vast Affordable Housing Opportunity • Urban Housing Shortage: estimated at 31.9 million units by 20161 - Demand continues to increase due to rapid urbanization, growing trend of nuclear families and rising income • Affordable Housing: Policy makers’ focus on Home loans up to 50 Lacs (from sub 25 Lac

  13. Slide 13: Headroom for Growth - Low Mortgage Penetration

    Indian Mortgage Market Headroom for Growth - Low Mortgage Penetration 88% 81% 41% 26% 29% 17% 20% 09% India Thailand China Korea Malaysia Hong Kong USA UK Source: National Housing Bank, 2013 • Lower mortgage penetration compared to advanced and emerging economies implies huge opportunity for growth

  14. Slide 14: Growing HFC Market Share in 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

  15. Slide 15: Recent Government Policy Initiatives

    Recent Government Policy Initiatives • Housing for all by 2022: A major policy goal for the new government - 65 million new housing units - Government focus on making organised housing finance available to all • 100 smart cities plan: Technologically integrated and planned townships - Large housing

  16. Slide 16: Tax Incentives – Low Effective Interest Rates

    Indian Mortgage Market Tax Incentives – Low Effective Interest Rates Particular 2015 2010 2000 Loan amt 2,000,000 2,000,000 2,000,000 Nominal Interest Rate(%) 10.15% 9.25% 13.25% Max deduction for interest allowed 200,000 150,000 75,000 Deduction Principal 150,000 100,000 20,000 Tax Rate applicable

  17. Slide 17: Financial and Operational Highlights

    Financial and Operational Highlights 17

  18. Slide 18: Balance Sheet Assets

    Balance Sheet Assets 5% 15% Loan Book: 80% Cash & Liquid Investments*: 15% Other Assets: 5% 80% Total Assets As at December 31, 2014 Rs. 53,402 Cr. (US$ 8.61 bn) As at December 31, 2013 Rs. 43,750 Cr. (US$ 7.06 bn) * Cash, Cash Equivalents and Investments in Liquid Debt Instruments US $ amounts are

  19. Slide 19: Loan Book Growth

    Loan Book Growth Total Loan Assets (Rs. Cr.) Loans Sold (Rs. Cr.) (in preceding 12 months) 48,078 4,059 39,069 3,181 32,551 1,869 Dec-12 Dec-13 Dec-14 Dec-12 Dec-13 Dec-14 • Loans sold (outstanding as on 31st Dec, 2014): Rs. 5,410 Cr. – on which spread at 3.4% p.a. is to be earned over the life of t

  20. Slide 20: Asset Composition

    Asset Composition Q3 FY 13-14 Q3 FY 14-15 21% 21% 6% 3% 73% 76% Mortgage Commercial Vehicle Loans Corporate Mortgage Loans • Driven by the growth of the Home loans book, retail mortgage book growth has outpaced the growth of corporate mortgage book growth • Home loans, which forms the majority of in

  21. Slide 21: Home Loan Profile: Focus on Affordable Housing

    Home Loan Profile: Focus on Affordable Housing Average Loan Size 24 Lacs Maximum Loan to Value 80% Average Loan to Value 71% (at origination) Average Loan Term 13 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing • RBI defines Affordable housing finance as housin

  22. Slide 22: Conservative Loan Against Property Profile

    Conservative Loan Against Property Profile Average Loan Size 68 Lacs Maximum Loan to Value 65% Average Loan to Value 49% (at origination) Average Loan Term 7 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing 22

  23. Slide 23: Mortgage Loans' Sourcing

    Mortgage Loans' Sourcing 79% of Mortgage loans are sourced in-house 21% 9% 70% DST Branch Walk-ins External Channels • Increasing DST manpower and improving productivity will push in-house sourcing to over 80% in FY15 23

  24. Slide 24: Asset Quality

    Asset Quality As at Dec 31, 2014 0.88% 0.86% (in Rs. Cr.) 0.76% NPA (3 months): 411.8 Provisions for 0.48% 0.52% Contingencies: 604.7 0.43% 0.40% Of which 0.33% 0.34% NPAs: 247.2 Other provisioning: 357.5 Regulatory Provisioning: 365.9 Dec-12 Dec-13 Dec-14 Excess Provisioning Over Regulatory Gross N

  25. Slide 25: Liabilities

    Liabilities 6% 12% Share Holder’s Funds: Rs. 6,135 Cr. (US$ 0.99 bn) Borrowings: Rs. 43,747 Cr. (US$ 7.06 bn) Other Liabilities: Rs. 3,520 Cr. (US$ 0.57 bn) 82% Total Liabilities: As of December 31, 2014: Rs. 53,402 Cr. (US$ 8.61 bn) As of December 31, 2013: Rs. 43,750 Cr. (US$ 7.06 bn) US $ amounts

  26. Slide 26: Diversified Borrowing Programme

    Diversified Borrowing Programme 8% 8% 8% 29% 29% 32% Commercial Paper Bonds 63% 63% 60% Bank Loans Dec-12 Dec-13 Dec-14 Total Borrowings: As of December 31, 2014: Rs. 43,747 Cr. (US$ 7.06 bn) As of December 31, 2013: Rs. 35,539 Cr. (US$ 5.73 bn) US $ amounts are converted based on the exchange rate

  27. Slide 27: Diversified Borrowing Programme

    Diversified Borrowing Programme Borrowings (Rs. Cr.) 43,747 40,000 35,539 6.5 35,000 29,268 6.1 5.3 5.5 30,000 Borrowings 4.5 25,000 4.5 20,000 Net Gearing 3.5 15,000 10,000 5,000 2.5 Net Gearing: Borrowings Net of ‘Cash & Cash Equivalents’ and ‘Investments in Liquid - 1.5 Debt Instruments’ Dec-12 D

  28. Slide 28: Optimally Matched Balance Sheet

    Optimally Matched Balance Sheet Maturity Profile (As of March 31,2014) 17,922 16,715* 16,259 14,431 10,104 10,725 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. 7,341.4 Cr. of Cash, Cash equivalents and investments in liquid

  29. Slide 29: Our Strengths

    Our Strengths Corporate Strengths Awards and Accolades • Highest credit rating of AAA ASSOCHAM HFC ISO 9001:2008 • Very strong board of directors of the Year 2013-2014 Certificate • Stable and experienced management team • Headroom to grow: Net gearing: 6.1 • Steady book growth over last 22 quarters

  30. Slide 30: Eminent and Experienced Board of Directors

    Eminent and Experienced Board of Directors Board of Directors with pre-eminence and experience in diverse fields • Mr. Sameer Gehlaut - Chairman of the board • Mr. Gagan Banga - Vice Chairman and MD • Dr. K.C. Chakrabarty - former Deputy Governor of the Reserve Bank of India • Justice Surinder Singh

  31. Slide 31: Indiabulls Foundation: Corporate Social Responsibility

    Indiabulls Foundation: Corporate Social Responsibility Indiabulls  Indiabulls Foundation has provided 3 highly sophisticated E-learning systems Foundation to Chikle Tribal Ashram School in Raigad District, enhancing the quality of E-learning education in the rural areas of Maharashtra (IBFE)  The

  32. Slide 32: Sustained Financial Performance

    Sustained Financial Performance 32

  33. Slide 33: Sustained Financial Performance: Loan Book

    Q1 FY 11 Q2 FY 11 Q3 FY11 Q4 FY 11 Q1 FY 12 Q2 FY 12 Q3 FY 12 Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Sustained Financial Performance Q4 FY 13 Loan Book (Rs. Cr.) Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15 33 Q3 FY15

  34. Slide 34: Sustained Financial Performance: Total Revenues

    Q1 FY 11 468 Q2 FY 11 577 Q3 FY11 681 Q4 FY 11 767 Q1 FY 12 835 Q2 FY 12 911 Q3 FY 12 964 Q4 FY 12 1,118 Q1 FY 13 1,050 Q2 FY 13 Q3 FY 13 Sustained Financial Performance 1,179 1,215 Q4 FY 13 Total Revenues (Rs. Cr.) Q1 FY 14 1,334 1,344 Q2 FY 14 1,474 Q3 FY 14 Q4 FY 14 Q1 FY 15 1,575 1,569 1,603 Q2

  35. Slide 35: Sustained Financial Performance: Net Interest Income

    Q1 FY 11 313 Q2 FY 11 374 Q3 FY11 432 Q4 FY 11 437 Q1 FY 12 417 Q2 FY 12 439 Q3 FY 12 442 Q4 FY 12 544 Q1 FY 13 459 Q2 FY 13 502 Q3 FY 13 540 Sustained Financial Performance Q4 FY 13 628 Q1 FY 14 599 Net Interest Income (Rs. Cr.) Q2 FY 14 645 Q3 FY 14 659 Q4 FY 14 705 Q1 FY 15 701 Q2 FY 15 737 35 Q3

  36. Slide 36: Sustained Financial Performance: Profit After Tax

    Q1 FY 11 134 Q2 FY 11 174 Q3 FY11 207 Q4 FY 11 236 Q1 FY 12 222 Q2 FY 12 231 Q3 FY 12 Q4 FY 12 250 303 Q1 FY 13 268 Q2 FY 13 304 Q3 FY 13 327 Sustained Financial Performance Q4 FY 13 368 Profit After Tax (Rs. Cr.) Q1 FY 14 352 Q2 FY 14 370 Q3 FY 14 395 Q4 FY 14 452 Q1 FY 15 424 Q2 FY 15 448 36 Q3 FY

  37. Slide 37: Sustained Financial Performance: Asset Quality

    Q1 FY 11 0.90 1.74 Q2 FY 11 0.63 1.38 Q3 FY11 0.53 1.20 Q4 FY 11 0.37 1.03 Q1 FY 12 0.37 1.00 Q2 FY 12 0.32 0.86 Q3 FY 12 0.28 0.78 Q4 FY 12 0.33 0.79 Q1 FY 13 0.33 0.79 Gross NPA (%) Q2 FY 13 0.31 0.76 Q3 FY 13 0.33 0.76 Sustained Financial Performance Asset Quality (%) Q4 FY 13 0.33 0.79 Net NPA (

  38. Slide 38: Sustained Financial Performance: Net Gearing

    Q1 FY 11 1.8 Q2 FY 11 2.4 Q3 FY11 2.7 Q4 FY 11 3.1 Q1 FY 12 3.2 Q2 FY 12 3.7 Q3 FY 12 3.7 Q4 FY 12 3.9 Q1 FY 13 4.1 Q2 FY 13 4.3 Q3 FY 13 4.5 Sustained Financial Performance Net Gearing Q4 FY 13 4.7 Q1 FY 14 5.1 Q2 FY 14 5.1 Q3 FY 14 5.3 Q4 FY 14 5.2 Q1 FY 15 5.6 Q2 FY 15 5.7 38 Q3 FY15 6.1

  39. Slide 39: Key Ratios, Valuations and Shareholding

    Key Ratios, Valuations and Shareholding 39

  40. Slide 40: Rising Productivity Ratios

    Rising Productivity Ratios FY 2014 FY 2013 FY 2012 No. Of Employees 4,099 4,072 4,243 Profit Per employee (Rs. Cr.) 0.38 0.31 0.24 Asset Per employee (Rs. Cr.) 10.84 8.09 5.85 Cost Income Ratio 17.1% 18.0% 18.7% 40

  41. Slide 41: Rising Productivity Ratios

    Rising Productivity Ratios FY 2014 FY 2013 FY 2012 Pre Tax RoAA (%) 4.8% 4.9% 4.9% Post Tax RoAA (%) 3.8% 3.8% 3.7% RoE (%) 27% 26% 22% Capital Adequacy (%) 19.14% 18.47% 18.86% - of which Tier I 15.05% 14.96% 18.21% - Tier II 4.09% 3.51% 0.65% 41

  42. Slide 42: Valuations and Returns

    Valuations and Returns Dec-14 Mar-14 Mar-13 Mar-12 Market Price per share (Rs.) 566.4# 285.6 271.8 207.1 Market Capitalisation (US$ Bn) 3.24 1.59 1.42 1.08 PE Ratio (times) 10.8 6.0 6.8 6.5 Dividend per share (Rs.) 26* 29 20 13 Foreign Shareholding (%) 46.4% 41.1% 45.2% 38.7% * Dividend for 9M FY 20

  43. Slide 43: Shareholding Pattern

    Shareholding Pattern 22.57% 27.84% 3.24% 46.35% Promoters Foreign Shareholding MFs/Banks/IFI Public MF: Mutual Funds 43 IFI: Indian Financial Institutions

  44. Slide 44: Detailed Financials

    Indiabulls HOME LOANS Detailed Financials 44

  45. Slide 45: Consolidated Balance Sheet

    Consolidated Balance Sheet Rs. 7,813 Cr. of Cash & Cash Equivalents and Investments in Liquid Debt Instruments 45

  46. Slide 46: Consolidated Income Statement

    Consolidated Income Statement 46

  47. Slide 47: Thank you

    Indiabulls HOME LOANS Thank you

Indiabulls Housing Finance — Q3 FY2015 Earnings Presentation on 6ix