Indostar Capital Finance Limited · NSE:INDOSTAR
Indostar Capital Finance — Q2 FY2025 Earnings Presentation
46 slides from Indostar Capital Finance's earnings presentation, Oct 21, 2024
Slide 1: Stock exchange filing cover letter
ICFL/LS/0154/2024-25 October 21, 2024 BSE Limited National Stock Exchange of India Limited Listing Department, 1st Floor, Exchange Plaza, C-1, Block G, P J Towers, Dalal Street, Fort, Bandra Kurla Complex, Bandra, Mumbai - 400 001. (E), Mumbai – 400 051. Scrip Code: 541336 Symbol: INDOSTAR Sub.: Inv
Slide 2: IndoStar Capital Finance Investor Presentation – September 2024
INDOSTAR CAPITAL FINANCE Investor Presentation – September 2024
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by IndoStar Capital Finance Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: IndoStar 2.0
INDOSTAR 2.0 Focus on Higher Yield Diversifying Liability Asset Quality Cost Optimization products Franchise o Recalibrated with high yield, low ticket size o Improved underwriting o IndoStar’s long term facilities' rating o Leveraging technology across loan secured products processes/controls ensur
Slide 5: Continued Focus Areas
Continued Focus Areas Continuously evolving Expanding the use of Ensuring a robust Digitalization product offerings data and systems balance sheet Expanding distribution Expanding customer Automating controls and Being agile and footprint lifetime value alerts to minimize risk future-ready 4
Slide 6: Key Performance Highlights – Q2FY25
Key Performance Highlights – Q2FY25 Consolidated AUM Disbursements ₹ 10,112 crs ₹ 1,724 crs Q2FY24: ₹ 7,726 crs Q2FY24 : ₹ 1,269 crs PAT Branches ₹ 31.7 crs 566 Branches Q2FY24: ₹ 24.8 crs Q2FY24: 476 Human Capital 5,172 Q2FY24 : 3,512 5
Slide 7: Changing Portfolio Mix Driven by Retailisation Strategy
Changing Portfolio Mix Driven by Retailisation Strategy Consolidated Break-up of Asset Under Management (₹ crs)* Retailisation Strategy Playing Out 10,150 8,998 9,658 7,813 8,763 9,565 10,112 26% 388 409 3 1,543 1,200 485 (4%) 451 371 (4%) (0%) 1,932 (16%) (15%) (6%) (5%) (4%) 2,930 174 FY2018 (22%)
Slide 8: Retailisation Strategy Playing Out
Retailisation Strategy Playing Out Consolidated Disbursements: Retail (₹ crs) Disbursements: Retail (₹ crs) +40.3% 5,190 1,726 1,714 3 4,885 1,618 937 302 261 563 211 579 1,298 1,221 3,331 224 3 221 472 945 840 2,356 190 347 1,937 183 1,449 4,253 1,424 1,407 3,743 14 363 1,609 487 1,074 374 2,856 44
Slide 9: National Footprint Creating Runway for Growth
National Footprint Creating Runway for Growth Consolidated No States 566 Branches Across 23 States 1 HIMACHAL PRADESH – 2 2 PUNJAB – 11 2 541 566 3 UTTARAKHAND – 9 493 515 11 476 128 4 HARYANA – 12 9 124 122 108 119 5 NEW DELHI – 2 31 27 6 UTTAR PRADESH- 35 9 391 419 438 7 RAJASTHAN – 37 31 6 33 2 1
Slide 10: IndoStar Capital Finance Limited
IndoStar Capital Finance Limited
Slide 11: Key Performance Highlights – Q2FY25 ICF Standalone
Key Performance Highlights – Q2FY25 ICF Standalone AUM Disbursements NIMs ₹ 7,550 crs ₹ 1,462 crs 5.2% Q2FY24: ₹ 5,832 crs Q2FY24 : ₹ 1,048 crs Q2FY24: 5.8% Gross Stage 3 Net Stage 3 CRAR 4.97% 2.5% 25.9% CRAR Q2FY24: 8.14% Q2FY24: 4.0% Q2FY24: 32.8% Net Total Income PAT Branches ₹ 165.9 crs ₹ 18.0
Slide 12: Expanding the used CV portfolio
Expanding the used CV portfolio ICF Standalone Break-up of Asset Under Management (₹ crs) Retail Disbursements (₹ crs) 8,002 8,252 6,190 6,493 7,170 7,550 3 174 4,307 4,253 388 371 (0%) 409(2%) (5%) 1,543 1,200 485(6%) 451 (5%) 564 1,932 (19%) (6%) (19%) (8%) (24%) 1,776 1,293 1,849 (22%) (21%) (23%
Slide 13: Movement of Non-performing Assets
Movement of Non-performing Assets ICF Standalone NPA trends (%) Collection Efficiency (Inc Overdue)(%) 8.10% 100.9% 93.3% 96.3% 94.7% 92.5% 6.50% 4.97% 4.97% 4.97% 4.00% 2.80% 2.36% 2.50% 2.09% Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Gross Stage 3 Net Stage 3
Slide 14: Movement in staging of loan assets
Movement in staging of loan assets ICF Standalone Particulars (₹ crs) Q2FY25 Q1FY25 Q4FY24 Q3FY24 Q2FY24 Gross Stage 1 & 2 6,972 6,695 5,985 5,358 5,068 ECL Stage 1 & 2 99 125 126 133 145 Net Stage 1 & 2 6,873 6,570 5,859 5,225 4,923 ECL Provision % 1.44% 1.87% 2.1% 2.5% 2.9% Particulars (₹ crs) Q2F
Slide 15: Diversified Borrowing Profile
Diversified Borrowing Profile ICF Standalone Diversified Funding Mix (Sep 2024) Raised ₹ 2,361 Cr during Q2FY25 NCDs Term loan Securitisation CPs/WCDL 4,638 5,328 6,049 6,171 7,189 2,361 6% 13% 7% 12% 15% 266 17% 24% 19% 21% 23% 1,609 26% 815 21% 16% 15% 22% 1,147 800 890 100 53% 52% 100 730 675 51%
Slide 16: Credit Rating remains Strong
Credit Rating remains Strong ICF Standalone Net-worth and Capital Adequacy Strong Credit Ratings 33% 32% 29% 28% 26% Borrowing Type Rating Firm Ratings CRISIL AA (–) Term Loans 3,102 3,165 3,186 CARE AA (–) 3,065 3,078 CRISIL AA (–) Redeemable NCDs CARE AA (–) Net-worth (₹ crs) CPs CRISIL/CARE A1 (+
Slide 17: CV Finance
—! INDOSTAR “Your Path To A Better Life” CV Finance
Slide 18: Industry Overview
Industry Overview Commercial Vehicle Industry Commercial Vehicles are a proxy for economic growth Provides direct / indirect employment to more than 50 Mn people GDP Growth of 6%+, Robust Tax collections, Transparent / focused policies are Over 70% of the goods/ people movement is by Road Transport
Slide 19: Commercial Vehicle Finance
Commercial Vehicle Finance Average Loan to Value Disbursements Yield AUM of Average Ticket Size of Used Vehicle Disbursement Presence across Ratio is 73.2% in Q2FY25 ~18.5% ₹ 6,964 crs ₹ 6.9 Lakhs of 99% in Q2FY25 23 States vis-à-vis 78.0% in Gross Stage 3 of 4.8% & Disbursements in Q2FY24 Net Stage
Slide 20: CV Finance: Key Operational Parameters
CV Finance : Key Operational Parameters AUM (₹ crs) Loan to Value (%) 6,964 6,323 78.0% 5,594 4,850 73.8% 73.4% 73.2% 4,383 73.0% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Average Ticket Size (₹ lakhs) AUM Mix (Geography –Wise) (%) 8.3 8.2 8.2 17% 7.7 28% North 6.9 South
Slide 21: CV Finance: Key Operational Parameters
CV Finance : Key Operational Parameters Disbursements (₹ crs) Disbursements Yield (%) 1,424 1,407 1,449 1,074 1,000 18.2% 18.4% 18.5% 17.9% 17.9% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Disbursement Mix (Product) (%) Disbursement Mix (Geography) (%) Disbursement Mix (Ne
Slide 22: IndoStar Home Finance Private Limited
IndoStar Home Finance Private Limited
Slide 23: Indian Affordable Housing Finance Market expected to show Significant Growth
Indian Affordable Housing Finance Market expected to show Significant Growth Ticket Size (Rs) Players in Indian Mortgage Market Increasing Penetration in LIG & EWS Segments to Drive Growth 69% 41% Average LTS Affordable Housing Market MIG & Comprises of loans with ticket 17.1 35% sizes less than Rs
Slide 24: Future Ready to Seize Affordable Housing Market Opportunity
Future Ready to Seize Affordable Housing Market Opportunity Management Team Geographical Focus Ecosystem Play Robust Underwriting Micro LAP Play • Seasoned management • Geographical focus on • Remote access to • Centralized underwriting • Presence in tier 3 and 4 team supported by South & West India
Slide 25: Key Performance Highlights – Q2FY25 HFC Standalone
Key Performance Highlights – Q2FY25 HFC Standalone AUM Disbursements NIMs Gross Stage 3 ₹ 2,562 crs ₹ 261 crs 6.9% 1.4% Q2FY24: ₹ 1,894 crs Q2FY24 : ₹ 221 crs Q2FY24 : 8.2% Q2FY24 : 1.3% Net Total PAT Net Stage 3 CRAR Income 1.1% 55.7% ₹ 54.2crs ₹ 13.7 crs Q2FY24 : 1.0% Q2FY24 : 70.8% Q2FY24 : ₹ 54.
Slide 26: Focusing on Growing Housing Finance Book
Focusing on Growing Housing Finance Book HFC Standalone Housing Finance – AUM Housing Finance – Disbursements (₹ crs) (₹ crs) 2,562 301 2,395 2,270 261 2,047 1,894 221 224 211 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1 FY25 Q2 FY25 25
Slide 27: Housing Finance: Key Operational Parameters
Housing Finance : Key Operational Parameters HFC Standalone Average Ticket Size (₹ lakhs) Live Accounts 32,508 30,498 9.0 9.0 9.0 9.0 9.0 28,923 26,216 24,095 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Loan to Value (%) Geographical Distribution (Value –Wise) (%) 3% 3% 2%
Slide 28: Housing Finance: Key Financial Parameters
Housing Finance : Key Financial Parameters HFC Standalone AUM (₹ crs) Gross Stage 3 & Net Stage 3 (%) 1.9% 1.8% +27% 2,562 2,270 2,395 1.3% 1.4% CRAR 1.3% 1.1% Gross Stage 3 1.4% 55.7% 1,623 Net Stage 3 1,406 1.1% 1.1% 1.1% 0.9% Q2 FY25 996 0.8% FY 21 FY 22 FY23 FY24 Q1FY25 Q2FY25 FY 21 FY 22 FY23 F
Slide 29: Catering to Underpenetrated Segments across Product Types
Catering to Underpenetrated Segments across Product Types HFC Standalone Characteristics Salaried Self Employed Textile loom workers Retail workers Small traders Kirana shop owners FMCG workers School teachers Tea & snack vendors Vegetable vendors Profession Small time Manual labourers Helpers Micro
Slide 30: Process Excellence: Credit & Underwriting
Process Excellence: Credit & Underwriting HFC Standalone CREDIT & UNDERWRITING Assessment of Total Income (Individual & Evaluation of Profile and Property Risk Evolving Underwriting Processes Household) • Collecting KYCs -Aadhar, PAN, Credit history checks with • Building self learnings in the credi
Slide 31: Process Excellence: Collections & Monitoring
Process Excellence: Collections & Monitoring HFC Standalone Collection Process Pre Bounce / Delinquency • Use of Bounce prediction tool which provides with the pool of customers with high probability where focused efforts are put in to collect advance EMIs to avoid bounce • Sales team is responsible
Slide 32: Analytics driven Risk Management to control Delinquency
Analytics driven Risk Management to control Delinquency HFC Standalone Key Risk Management Aspects Monitored ✓ Robust dashboards developed in the system to enable real time monitoring of mentioned parameters Roll Rate Analysis Lagged Bounce Rate Analysis ✓ Dashboards are sent to branch managers to e
Slide 33: Financial Performance
—! INDOSTAR “Your Path To A Better Life” Financial Performance
Slide 34: ICF Standalone - Income Statement
ICF Standalone - Income Statement ICF Standalone Particulars (₹ in crs) Q2FY25 Q1FY25 Q-o-Q Q2FY24 Y-o-Y H1FY25 H1FY24 Y-o-Y Revenue from operations 344.9 304.2 234.2 649.1 475.4 Interest expenses 187.8 166.8 140.8 354.6 273.9 Net Interest Income 157.2 137.4 14.4% 93.4 68.3% 294.6 201.5 46.2% Other
Slide 35: ICF Standalone - Balance Sheet
ICF Standalone - Balance Sheet ICF Standalone Equity & Liabilities (₹ in crs) Sep’24 Jun’24 Sep’23 Assets (₹ in crs) Sep’24 Jun’24 Sep’23 Financial Liabilities Financial Asset Trade payables 0.3 4.9 0.1 Cash and cash equivalents 254.5 79.0 110.4 Bank balance other than cash & cash equivalent 340.3 2
Slide 36: HFC - Income Statement
HFC - Income Statement HFC Standalone Particulars (₹ in crs) Q2FY25 Q1FY25 Q-o-Q Q2FY24 Y-o-Y H1FY25 H1FY24 Y-o-Y Revenue from operations 92.0 85.3 79.0 177.3 138.3 Interest expenses 40.4 36.3 24.4 76.7 47.1 Net Interest Income 51.6 49.0 5.2% 54.7 (5.7%) 100.6 91.2 10.2% Other Income 2.6 0.0 0.0 2.7
Slide 37: HFC - Balance Sheet
HFC - Balance Sheet HFC Standalone Equity & Liabilities (₹ in crs) Sep’24 Jun’24 Sep’23 Assets (₹ in crs) Sep’24 Jun’24 Sep’23 Financial Liabilities Financial Asset Trade payables 0.2 20.0 23.3 Cash and cash equivalents 369.2 127.1 11.3 Debt Securities 75.4 74.8 31.3 Bank balance other than cash & c
Slide 38: Consolidated Income Statement incl. Discontinued Operations
Consolidated Income Statement incl. Discontinued Operations Particulars (₹ in crs) Q2FY25 Q1FY25 Q-o-Q Q2FY24 Y-o-Y H1FY25 H1FY24 Y-o-Y Revenue from operations 345.0 304.2 234.2 649.2 474.1 Interest expenses 187.8 166.8 140.8 354.6 272.5 Net Interest Income from continuing operations 157.2 137.4 14.
Slide 39: Consolidated Balance Sheet incl. Discontinued Operations
Consolidated Balance Sheet incl. Discontinued Operations Consolidated Equity & Liabilities (₹ in crs) Sep’24 Mar’24 Assets (₹ in crs) Sep’24 Mar’24 Financial Liabilities Financial Asset Trade payables 0.3 1.4 Cash and cash equivalents 259.3 613.9 Debt Securities 3,614.1 3,341.0 Bank balance other th
Slide 40: Ownership Structure and Management Team
Ownership Structure and Management Team
Slide 41: Large Global Private Equity Parentage
Large Global Private Equity Parentage Shareholding Pattern (As on Sep 2024) Shareholders % 22.32% Promoters 73.60 2.26% BCP V Multiple Holdings Pte Ltd (Brookfield) 56.20 1.82% Everstone Group 17.40 73.60% Domestic Institutional Investors 1.82 ICICI Prudential Life Insurance Company Limited 1.41 Pro
Slide 42: Experienced Management Team - IndoStar
Experienced Management Team - IndoStar Randhir Singh Karthikeyan Srinivasan Whole-Time Director and Executive Vice Chairman - ICF Chief Executive Officer and Whole-Time Director - ICF o He is a seasoned financial leader with 29 years of experience in o He has over 30 years of experience in the areas
Slide 43: Experienced Management Team
Experienced Management Team Shreejit Menon Chief Executive Officer - HFC o He is a Commerce Graduate and has a Master’s degree in Management Studies from University of Mumbai o He has several years of experience with financial institutions like Religare Housing Development Finance Corporation Limite
Slide 44: Esteemed Board of Directors
Esteemed Board of Directors Bobby Parikh Chairman and Non-Executive Independent Director o He has nearly three decades of experience in financial services industry/reorganizations o His area of focus is providing tax and regulatory advice in relation to transactions and other forms of business reorg
Slide 45: Esteemed Board of Directors
Esteemed Board of Directors Dhanpal Jhaveri Non–Executive Director o He has over two decades of experience in investments, strategy, M&A and investment banking. Currently, he is a Managing Partner at the Everstone Group o He holds a degree in Bachelor of Commerce from the University of Mumbai and an
Slide 46: Thank You
COMPANY “Your Path To A Better Life” Indostar Capital Finance Limited CIN: L65100MH2009PLC268160 Email: investor.relations@indostarcapital.com Website: www.indostarcapital.com INVESTOR RELATIONS ADVISORS Orient Capital (a division of Link Group) Thank You Mr. Nikunj Jain Mr. Viral Sanklecha +91 9769
IndoStar Capital Finance — Q2 FY2025 Earnings Presentation on 6ix