Iifl Finance Limited · NSE:IIFL
Iifl Finance — Q3 FY2023 Earnings Presentation
57 slides from Iifl Finance's earnings presentation, Jan 30, 2023
Slide 1: Exchange filing cover letter for investor presentation
January 30, 2023 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, Dalal Street, Bandra - Kurla Complex, Bandra (E), Mumbai 400 001. Mumbai 400 051. BSE Sc
Slide 2: Performance review Quarter ended December 2022
Performance review Quarter ended December, 2022 (Q3FY23 and 9MFY23) Bloomberg: IIFL IN January 30, 2023
Slide 3: Financial Performance Q3FY23 and 9MFY23 Key Business Metrics Business Segments Overview
Financial Performance Q3FY23 and 9MFY23 3-8 Key Business Metrics 10 – 16 Business Segments Overview 18 – 28 Corporate, Strategy and Others 30 – 39 Financials of the Subsidiaries 41 – 54 Link to download databook 55 2
Slide 4: Quarterly Snapshot (Consolidated)
Quarterly Snapshot (Consolidated) Quarter net profit ₹423 Crore - up 37% yoy, 7% qoq; RoE at 17.9% Earnings per share ₹10 (Not annualized) (₹ Cr) Q3FY23 Q3FY22 YoY % Q2FY23 QoQ % Book value per share ₹225.6 Loan AUM 57,941 46,780 24% 55,302 5% Return on Equity PPOP 772.7 611.3 26% 688.8 12% 17.9% PA
Slide 5: Quarterly Results (Consolidated)
Quarterly Results (Consolidated) Income ₹1,339 - up 30% yoy, 8% qoq; PPOP ₹773 - up 26% yoy, 12% qoq ₹ Cr Q3FY23 Q3FY22 Y-o-Y Q2FY23 Q-o-Q Interest income 1,618.6 1,412.0 15% 1,538.9 5% Interest expense (809.5) (772.8) 5% (775.8) 4% Net interest income 809.1 639.2 27% 763.0 6% Non-fund based income
Slide 6: Quarterly Income Analysis (Consolidated)
Quarterly Income Analysis (Consolidated) Non fund income 40% of total income ₹ Cr Q3FY23 Q3FY22 Y-o-Y Q2FY23 Q-o-Q Loan book using risk capital 35,237 30,380 16% 33,582 5% Securitized book 1,049 3,191 (67%) 1,580 (34%) Loan Book (Ind AS Balance sheet) 36,286 33,571 8% 35,162 3% Assigned assets 15,93
Slide 7: Nine monthly Results (Consolidated)
Nine monthly Results (Consolidated) Income ₹3,768 - up 35% yoy; PPOP at ₹2,136, up 27% yoy ₹ Cr 9MFY23 9MFY22 Y-o-Y Interest income 4,589.8 3,999.3 15% Interest expense (2,361.3) (2,217.8) 6% Net interest income 2,228.4 1,781.5 25% Non-fund based income 1,539.7 1,018.2 51% Total income 3,768.1 2,799
Slide 8: Nine monthly Income Analysis (Consolidated)
Nine monthly Income Analysis (Consolidated) Non fund income 41% of total income ₹ Cr 9MFY23 9MFY22 Y-o-Y Loan book using risk capital 35,237 30,380 16% Securitized book 1,049 3,191 (67%) Loan Book (Ind AS Balance sheet) 36,286 33,571 8% Assigned assets 15,939 12,365 29% Co-lending book 5,716 845 577
Slide 9: Consolidated Balance Sheet as at December 31, 2022
Consolidated Balance Sheet as at December 31, 2022 Total Equity at ₹9,911 Cr ASSETS (₹ Cr) Q2FY23 LIABILITIES AND EQUITY (₹ Cr) Q2FY23 1 Financial Assets 1 Financial Liabilities (a) Cash and Bank Balances 5,594 (a) Payables 216 (b) Receivables 170 (b) Borrowings (c) Loan Assets 36,234 - NCDs 10,263
Slide 10: Financial Performance Q3FY23 and 9MFY23 Key Business Metrics Business Segments Overview
Financial Performance Q3FY23 and 9MFY23 3-8 Key Business Metrics 10 – 16 Business Segments Overview 18 – 28 Corporate, Strategy and Others 30 – 39 Financials of the Subsidiaries 41 – 54 Link to download databook 55 9
Slide 11: Key business metric - Loan AUM growth
Key business metric - Loan AUM growth Core loan products AUM has grown at 25% CAGR Latest quarter Key business metrics Loan AUM (₹ Cr) Q3FY23 Mix % Q3FY22 YoY % Q2FY23 QoQ % Loan AUM growth Subsidy ₹260cr was received in last Portfolio Yield Home Loan 20,389 35% 16,495 24% 19,681 4% quarter, netted
Slide 12: Key business metric – Portfolio yield
Key business metric – Portfolio yield Yield is improving with focus on small ticket granular loans Latest quarter Key business metrics Portfolio yield % Q3FY23 Q3FY22 YoY % Q2FY23 QoQ % Loan AUM growth Home Loan 10.9% 10.1% 0.87% 10.6% 0.36% Portfolio Yield Gold Loan 17.8% 17.4% 0.38% 17.5% 0.34% Co
Slide 13: Key business metric – Cost of borrowing
Key business metric – Cost of borrowing Latest quarter Key business metrics Cost of borrowing % Q3FY23 Q3FY22 YoY % Q2FY23 QoQ % Loan AUM growth Total Borrowings (Consol) 36,001 33,669 7% 34,765 4% Portfolio yield - IIFL Finance Standalone 15,015 16,246 (8%) 15,273 (0%) Cost of borrowing - IIFL Home
Slide 14: Key business metric – Asset quality
Key business metric – Asset quality Non performing assets have consistently been lower than the peer group through cycles Latest quarter Key business metrics GNPA % Q3FY23 Q3FY22 YoY % Q2FY23 QoQ % Reported GNPA spike for FY22 is due to change in Loan AUM growth Home Loan 2.16% 1.79% 0.37% 2.44% (0.
Slide 15: Key business metric – Profitability
Key business metric – Profitability Net profit has grown at CAGR of 21%, despite covid & liquidity squeeze periods Latest quarter Key business metrics (₹ Cr) Q3FY23 Q3FY22 YoY % Q2FY23 QoQ % Loan AUM growth Total Income1 1,339.4 1,032.0 30% 1,239.7 8% Portfolio Yield NIM % 9.21% 7.29% 1.92% 8.93% 0.
Slide 16: Key business metric – Capital & gearing
Key business metric – Capital & gearing Robust financials with capital adequacy at over 20% and gearing close to 3x Latest quarter Key business metrics (₹ Cr) Q3FY23 Q3FY22 YoY % Q2FY23 QoQ % Loan AUM growth ADIA invested ₹2200cr for a 20% Portfolio Yield Networth (Excl. Minority) 8,571 6,089 41% 8,
Slide 17: Key business metric – Liquidity
Key business metric – Liquidity Well covered to not only meet obligations but sustain growth as well Latest quarter Key business metrics Asset Liability Match (ALM) ₹ Cr There is surplus in every bucket & no ALM Loan AUM growth Surplus across all buckets mismatch in any bucket Portfolio Yield 49,799
Slide 18: Financial Performance Q3FY23 and 9MFY23 Key Business Metrics Business Segments Overview
Financial Performance Q3FY23 and 9MFY23 3-8 Key Business Metrics 10 – 16 Business Segments Overview 18 – 28 Corporate, Strategy and Others 30 – 39 Financials of the Subsidiaries 41 – 54 Link to download databook 55 17
Slide 19: Home loan – Product overview
Home loan – Product overview Small loans for affordable homes, in small towns and suburbs of metros Primary focus on affordable and non-metro customers. Distribution of AUM as at December 31,2022 (₹ Cr) Uttar Pradesh, Uttarakhand Andhra Pradesh, 71% of home loans under Priority Sector Lending ca
Slide 20: Home loan – financial overview
Home loan – financial overview Improving yields and asset quality Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 2,132 10.9% 1,951 1,814 1,882 10.3% 10.3% 1,596 1,591 9.8% 10.0% 9.6% FY18 FY19 FY20 FY21 FY22 9MFY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 GNPA (%) Salaried and Self Employed Mix
Slide 21: Loan Against Property (LAP) – product overview
Loan Against Property (LAP) – product overview Focus on digital lending to MSME sector and individuals For secured business loans against residential, commercial Distribution of AUM as at December 31,2022 (₹ Cr) and industrial property Uttar Pradesh, Uttarakhand, 7% End use is for business expan
Slide 22: Loan Against Property (LAP) – financial overview
Loan Against Property (LAP) – financial overview Improving yields and asset quality; disbursals turning granular Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 792 743 720 17.6% 14.3% 14.8% 15.1% 16.1% 14.2% 561 504 FY18 FY19 FY20 FY21 FY22 9MFY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 GNPA (%) Onbo
Slide 23: Digital loan – product overview
Digital loan – product overview Focus on digital lending to MSME sector and individuals For business loans backed by cash flows Distribution of AUM as at December 31,2022 (₹ Cr) Focus on balancing prudent credit underwriting with Sikkim & 7 N.E.States, 2% Bihar, Jharkhand , 3% instant in-princip
Slide 24: Digital Loan – financial overview
Digital Loan – financial overview Improving yields and asset quality; disbursals turning granular Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 693 716 22.6% 661 501 20.8% 466 20.4% 19.9% 19.9% 19.7% FY18 FY19 FY20 FY21 FY22 9MFY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 GNPA (%) Onboarding Average
Slide 25: Gold loans – product overview
Gold loans – product overview Secured low-risk short term loans to neighborhood customers In-house loan origination through growing network of Distribution of AUM as at December 31,2022 (₹ Cr) branches and increasing use of digital technology West Bengal, Andhra Pradesh, 5% Uttarakhand, 7% Stron
Slide 26: Gold loans – financial overview
Gold loans – financial overview Stable yields and asset quality Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 19.0% 7,997 17.8% 18.1% 18.0% 7,177 17.8% 7,135 6,811 17.5% 6,462 FY18 FY19 FY20 FY21 FY22 9MFY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 GNPA (%) Onboarding Average Ticket Size (₹ ‘000) 0.9
Slide 27: Microfinance loans – product overview
Microfinance loans – product overview Focus on self employed, low income women groups for micro business Small-ticket loans for purpose of income generation Distribution of AUM as at December 31,2022 (₹ Cr) activities Assam,Tripura & Arunachal Target segment is rural and semi-urban self-employed
Slide 28: Microfinance loans – financial overview
Microfinance loans – financial overview Improving yields and asset quality; disbursals picking up Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 24.8% 2,699 2,516 23.4% 22.6% 22.3% 23.2% 21.9% 1,834 1,628 1,374 FY18 FY19 FY20 FY21 FY22 9MFY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 GNPA (%) MFI - Non
Slide 29: Construction Real Estate (CRE) & Capital Market
Construction Real Estate (CRE) & Capital Market Not core but businesses synergistic to Group’s core businesses Construction and Real Estate (CRE) CRE Asset Under Management (₹ Cr) • IIFL Finance will continue to provide funding for completion of its already funded projects, with appropriate 5,055 4,
Slide 30: Financial Performance Q3FY23 and 9MFY23 Key Business Metrics Business Segments Overview
Financial Performance Q3FY23 and 9MFY23 3-8 Key Business Metrics 10 – 16 Business Segments Overview 18 – 28 Corporate, Strategy and Others 30 – 39 Financials of the Subsidiaries 41 – 54 Link to download databook 55 29
Slide 31: Retail Lending: Phygital and Partnership model
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 3,900+ Innovative digit
Slide 32: Recent partnerships with banks for co-lending and co-origination
Our recent partnerships with banks for co-lending, co-origination and business correspondence.. Existing Tie-ups New Tie-ups (Q3FY23) Gold Loan Home Loan Home Loan and MSME LAP Gold Loan MSME LAP Gold Loan Microfinance Gold Loan Home Loan and MSME LAP Gold Loan Gold Loan Gold Loan Gold Loan Home Loa
Slide 33: Marquee global investors and shareholding pattern
Since inception, marquee global investors have reposed faith in our business & management Shareholding Pattern % holding Promoters 24.9 Institutional Investors 53.6 (Formerly CDC Group) Fairfax 22.3 2010 2016 Capital Group 8.0 Bank Muscat India Fund 3.3 Vanguard 2.9 Ward Ferry 2.8 2007 2011 2022 Bav
Slide 34: 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 35: Experienced senior management team
Experienced senior management team IIFL Finance IIFL Home Finance IIFL Samasta Finance N Venkatesh Kapish Jain Monu Ratra Chief Executive Officer Chief Financial Officer Chief Executive Officer Strategic leadership Program Chartered Accountant Qualified architect and MBA in microfinance at Harvard 2
Slide 36: ESG - Environment
ESG - Environment Supporting a sustainable economy through focus on environment Adopting environmentally conscious solutions in our business initiatives as well IIFL has signed a US$ 68 million Pioneered Green Building concept in loan with Asian Development Bank (ADB) to partnership with housing dev
Slide 37: ESG - Social
ESG - Social 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. 70% of gold loan disbursed are of less than ₹ 50,000 value 74% of the Unsecured MSME loans gi
Slide 38: ESG - Social: CSR projects
ESG - Social CSR projects continue amid covid with creative use of technology Phulwari – Maa Bari (Rajasthan) Seva Kurtir Learning Centers – Madhya Pradesh IIFL Foundation has taken a lead to collaborate with the Government of The programme aims to tackle the Rajasthan (TAD department) for transfo
Slide 39: ESG - Governance
ESG - 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 practices, Corporate policies and guidelines: Board Diversity Policy, ethical standard
Slide 40: IIFL's brand and credibility recognized at various forums
IIFL’s brand and credibility recognized at various forums IIFL Finance was received ‘Most innovative IIFL Finance received ‘Customer Services IIFL Finance received ‘Best Social Media Fintech Product Award’ at National Awards Excellence Award’ at the Asia Awards for Campaign’ Award for ‘Anmol Kisse’
Slide 41: Financial Performance Q3FY23 and 9MFY23 Key Business Metrics Business Segments Overview
Financial Performance Q3FY23 and 9MFY23 3-8 Key Business Metrics 10 – 16 Business Segments Overview 18 – 28 Corporate, Strategy and Others 30 – 39 Financials of the Subsidiaries 41 – 54 Link to download databook 55 40
Slide 42: Loan asset split based on Group entity booking the same
Loan asset split based on Group entity booking the same IIFL Finance is listed holding NBFC with 2 subsidiaries for housing & Micro-finance IIFL Finance IIFL Home IIFL Samasta IIFL Finance As on Q3FY23 (₹ Cr) Standalone Finance Finance Consolidated Home Loans - 20,389 - 20,389 Gold Loans 18,284 - -
Slide 43: Reconciliation of reported consolidated results with Group entities
Reconciliation of reported consolidated results with Group entities Nine monthly results for the period ended December 31, 2022 IIFL Finance IIFL Home IIFL Samasta Intergroup IIFL Finance ₹ Cr Standalone Finance Finance adjustments Consolidated Interest income 2,055.8 1,495.9 1,010.6 27.6 4,589.9 In
Slide 44: IIFL Finance (Standalone): Quarterly Results
IIFL Finance (Standalone): Quarterly Results ₹ Cr Q3FY23 Q3FY22 Y-o-Y Q2FY23 Q-o-Q Interest income 696.2 895.8 (22%) 688.2 1% Interest expense (365.0) (419.7) (13%) (353.5) 3% Net interest income 331.2 476.2 (30%) 334.8 (1%) Non-fund based income 310.5 243.7 27% 334.8 (7%) Total income 641.7 719.9 (
Slide 45: IIFL Finance (Standalone): Nine month ended Results
IIFL Finance (Standalone): Nine month ended Results ₹ Cr 9MFY23 9MFY22 Y-o-Y FY22 Interest income 2,055.8 2,343.4 (12%) 3,067.2 Interest expense (1,086.4) (1,231.1) (12%) (1,615.6) Net interest income 969.5 1,112.3 (13%) 1,451.6 Non-fund based income 940.3 618.8 52% 950.0 Total income 1,909.7 1,731.
Slide 46: IIFL Finance (Standalone): Financial trends
IIFL Finance (Standalone): Financial trends Robust financial performance and growth Loan AUM (₹ Cr) Profit after tax (PAT) (₹ Cr) RoA and RoE (%) Nine Nine Off Book (assignment, securitisation & colending) monthly monthly RoA RoE 745 Annualized On Book 18.5% 22870 15.4% 21,109 19,199 536 13.4% 16,06
Slide 47: IIFL Finance (Standalone): Key ratios trends
IIFL Finance (Standalone): Key ratios trends Income, return, asset & leverage ratios Non Fund based Income to Total Income (%) Operating Expenses to Average AUM (%) PPOP to Average AUM (%) Branch expansion 7.3% 49% 40% 5.7% 5.8% 5.6% 5.6% 5.3% 4.8% 31% 30% 4.4% 4.3% 4.2% 3.7% 3.6% 11% 7% FY18 FY19 F
Slide 48: IIFL Home Finance: Quarterly Results
IIFL Home Finance: Quarterly Results ₹ Cr Q3FY23 Q3FY22 Y-o-Y Q2FY23 Q-o-Q Interest income 543.4 402.1 35% 502.6 8% Interest expense (294.8) (262.9) 12% (290.8) 1% Net interest income 248.6 139.1 79% 211.8 17% Non-fund based income 148.0 131.0 13% 124.7 19% Total income 396.6 270.1 47% 336.6 18% Ope
Slide 49: IIFL Home Finance: Nine Month ended Results
IIFL Home Finance: Nine Month ended Results ₹ Cr 9MFY23 9MFY22 Y-o-Y FY22 Interest income 1,495.9 1,225.9 22% 1,658.3 Interest expense (865.7) (783.6) 10% (1,062.7) Net interest income 630.2 442.3 42% 595.6 Non-fund based income 459.6 371.0 24% 560.2 Total income 1,089.7 813.3 34% 1,155.9 Operating
Slide 50: IIFL Home Finance: Financial trends
IIFL Home Finance: Financial trends Robust financial performance and growth Loan AUM (₹ Cr) Profit after tax (PAT) (₹ Cr) RoA and RoE (%) Nine Nine Off Book (assignment, securitisation & colending) monthly monthly RoA RoE Annualized On Book 26,596 581 578 24.4% 23,617 21.5% 22.5% 20.3% 19.3% 20,694
Slide 51: IIFL Home Finance: Key ratios trends
IIFL Home Finance: Key ratios trends Income, return, asset & leverage ratios Non Fund based Income to Total Income (%) Operating Expenses to Average AUM (%) PPOP to Average AUM (%) 4.4% Branch 4.2% expansion 3.9% 42% 41% 42% 1.8% 1.7% 36% 37% 3.2% 1.4% 1.5% 1.2% 2.8% 28% 1.2% 2.4% FY18 FY19 FY20 FY2
Slide 52: IIFL Samasta Finance: Quarterly Results
IIFL Samasta Finance: Quarterly Results ₹ Cr Q3FY23 Q3FY22 Y-o-Y Q2FY23 Q-o-Q Interest income 362.96 243.3 49% 336.61 8% Interest expense (151.2) (101.4) 49% (132.6) 14% Net interest income 211.8 141.9 49% 204.0 4% Non-fund based income 90.3 18.0 401% 32.4 179% Total income 302.1 159.9 89% 236.4 28%
Slide 53: IIFL Samasta Finance: Nine months ended Results
IIFL Samasta Finance : Nine months ended Results ₹ Cr 9MFY23 9MFY22 Y-o-Y FY22 Interest income 1,010.6 673.3 50% 922.6 Interest expense (411.8) (280.9) 47% (395.1) Net interest income 598.8 392.4 53% 527.5 Non-fund based income 175.7 27.9 529% 90.6 Total income 774.5 420.3 84% 618.1 Operating expens
Slide 54: IIFL Samasta Finance: Financial trends
IIFL Samasta Finance : Financial trends Robust financial performance and growth Loan AUM (₹ Cr) Profit after tax (PAT) (₹ Cr) RoA and RoE (%) Nine Nine Off Book (assignment, securitisation & colending) monthly RoA RoE Monthly On Book 107 Annualized 8,475 29.2% 29.4% 6,484 4,796 66 68 53 3,400 50 11.
Slide 55: IIFL Samasta Finance: Key ratios trends
IIFL Samasta Finance : Key ratios trends Income, return, asset & leverage ratios Non Fund based Income to Total Income (%) Operating Expenses to Average AUM (%) PPOP to Average AUM (%) 44% 7.7% 9.4% 7.1% 8.0% 6.1% 6.1% 30% 7.5% 7.1% 6.9% 5.4% 5.1% 21% 5.5% 12% 6% 3% FY18 FY19 FY20 FY21 FY22 9MFY23 F
Slide 56: Link to download data book
Link to download data book Data reported across previous quarters is now continued to be reported in a Data Book, maintained in an excel format on our website. The Link for the data book is hosted below. Click here to download excel 55
Slide 57: Thank you
Thank you Published in January 2023 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 taxa