Can Fin Homes Ltd. · NSE:CANFINHOME
Can Fin Homes — Q4 FY2024 Earnings Presentation
38 slides from Can Fin Homes's earnings presentation, Apr 29, 2024
Slide 1: Submission of Investor Presentation - Post Q4 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 103/2024 April 29, 202
Slide 2: Investor Presentation Q4FY24
Investor Presentation Q4FY24 36 years of vision, passion and progress Offering home loans since 1987….. and it is just a beginning April 2024
Slide 3: Legacy Focus Reach
Legacy Focus Reach • 36 year old • To promote home • Headquartered institution registered ownership across in Bengaluru as a deposit taking India, with a motto HFC with NHB of friendship • Pan-India presence finance and good with 186 branches, • Promoted by Canara service 21 Affordable Bank in the y
Slide 4: Milestones since 1987
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. 10000 Cr AUM crossed 2022
Slide 5: Company will continue its thrust on growth, asset quality, profitability and liquidity
• Company will continue its thrust on growth, asset quality, • Company intends to evolve further • Expansion of sourcing channels to profitability and liquidity. with the help of technology, duly attract different segments of • Unwavering focus on good keeping abreast with the changes in borrowers,
Slide 6: Consistent support from the sponsor - Canara Bank
II • Consistent support from the sponsor - Canara Bank. • Expertise gained over 36 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. 2019 • Risk base
Slide 7: Credit ratings of borrowings as on 31/03/2024
Position as on 31/03/2024 Borrowings CARE ICRA IND Ra Term Loans (Long Term Loan) AAA/Stable AAA/Stable Term Loans (Short Term Loan) A1+ NHB Borrowings AAA/Stable Commercial Papers (CPs) A1+ A1+ Non-Convertible Debentures (NCDs) AAA/Stable AAA/Stable AA+/Stable Public Deposits AAA/Stable Upgraded ww
Slide 8: Board of Directors
Chairman (Promoter) Managing Director & CEO Director (Promoter) Director (Independent) Director (Independent) Director (Independent) Director (Independent) Director (Independent Deputy Managing Director Deputy Managing Director (Upto 29/04/2024) (w.e.f 29/04/2024) www.canfinhomes.com 7
Slide 9: Key Management Personnel
Chief Financial Officer Head - Collections Company Secretary Total Exp: 14 Years Total Exp: 30 Years Total Exp: 20 Years Service in Can Fin - 1 Year Service in Can Fin – 30 Years Service in Can Fin – 04 months Chief Compliance Officer Chief Risk Officer Chief Information Officer Total Exp: 34 Years
Slide 10: Loan 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; Online PAN verification; Online ITR verification thro
Slide 11: Documentation, collection and monitoring
Documentation Pre-filled System Generated documents - ready for Execution. Storage of Loan Centralised Document Storage. Dockets Collection Through E -NACH, Salary deduction. Option for online Payment. Monitoring Data mining for EWS Monthly OTMS reports Cluster Risk Monitoring Reconciliation At bran
Slide 12: Our digital focus areas
Our digital focus areas: Providing Creating a digital Automation and Building robust personalized and financial services digitization of and secure digital seamless services to bouquet in processes to capabilities across our customers across collaboration with make things platforms to the country so
Slide 13: Q4 FY24 highlights
1. Loan Book reached Rs. 34999 Cr 7. Gross NPA 0.82% & Net NPA 0.42%. (+11% YoY) with a clientele base of 2.53 lakh. 8. The Salaried and Professional segment constitutes 72% of the 2. NII: Rs. 328 Cr, PBT: Rs. 270 Cr and outstanding loan book as on PAT: Rs. 209 Cr. Mar 24. Housing forms 89% of the L
Slide 14: Year on Year and Sequential
* Amt in Crore Sl. Year on Year and Sequential Particulars No. Mar’24 (3m) Mar’23 (3m) Dec’23 (3m) 1 New Approvals 2586 2769 2053 2 Disbursements 2314 2538 1879 3 Outstanding Loan Book 34999 31563 34053 4 Net Interest Income 328 261 329 5 Operating Profit 272 222 287 6 ECL Provision 2 24* 30 7 Profi
Slide 15: Key ratios, period ended
* Amt in Crore Sl. PERIOD ENDED Particulars No. Mar’24 (3m) Mar’23 (3m) Dec’23 (3m) 1 Return on Avg Assets (%) 2.54% 2.32% 2.33% 2 Return on Avg Equity (%) 19.25% 18.18% 19.36% 3 Earning Per Share (Rs.) 15.70 12.45 15.03 4 Net Interest Margin (%) 3.96% 3.37% 3.92% 5 Yield on Loan Portfolio (%) 9.80%
Slide 16: Year on Year (As per IND AS)
* Amt in Crore Sl. Year on Year (As per IND AS) Particulars No. Mar’24 (12m) Mar’23 (12m) Growth% 1 New Approvals 8783 9307 -5.63% 2 Disbursements 8177 8947 -8.60% 3 Outstanding Loan Book 34999 31563 11% 4 Net Interest Income 1259 1015 24% 5 Operating Profit 1036 866 20% 6 ECL Provision 79 42 7 Prof
Slide 17: Key ratios, 12 months
* Amt in Crore Sl. PERIOD ENDED Particulars No. Mar’24 (12m) Mar’23 (12m) 1 Return on Avg Assets (Annualised) 2.28% 2.17% 2 Return on Avg Equity (Annualised) 17.28% 17.03% 3 Earning Per Share (Rs.) 56.38 46.65 4 Net Interest Margin (%) 3.73% 3.45% 5 Yield on Loan Portfolio (%) 10.07% 8.84% 6 Cost of
Slide 18: AUM by borrower category
AUM FY 23 AUM FY 24 1% 1% 14% 14% 27% 27% 3% 3% 55% 55% Sal - Govt Sal - Private Sal - PSU/Banks SENP Prof Sal - Govt Sal - Private Sal - PSU/Banks SENP Prof www.canfinhomes.com 17
Slide 19: AUM by product
AUM FY 23 AUM FY 24 2% 4% 2% 5% 5% 5% 9% 10% 79% 78% Housing Housing CRE Lap and Mort Top UP Others Housing Housing CRE Lap and Mort Top UP Others www.canfinhomes.com 18
Slide 20: AUM by purpose of loan
AUM FY 2022 - 2023 AUM FY 2023 - 2024 13% 14% 7% 7% 2% 2% 4% 4% 9% 64% 8% 64% Construction Flat Resale Rennov Mort+LAP+Top UP Others Construction Flat Resale Rennov Mort+LAP+Top UP Others *Others include Site loan, Loan against rent receivables, Loans for commercial property, Loans for children educ
Slide 21: Disbursement and AUM by ticket size
Disbursement FY 2023 -24 AUM FY 2023 - 24 36% 34% 34% 32% 28% 28% 27% 27% 27% 26% 24% 24% 13% 13% 13% 13% 0 - 10L 10 - 20L 20 - 30L >30L 0 - 10L 10 - 20L 20 - 30L >30L Mar-23 Mar-24 Mar-23 Mar-24 www.canfinhomes.com 20
Slide 22: Quarterly disbursement growth
2538 2408 2275 2314 2019 1966 1879 1726 Q1 Q2 Q3 Q4 FY 23 FY 24 Column1 * 23% growth in disbursement in Q4 FY 24 vis a vis Q3 FY 24 www.canfinhomes.com 21
Slide 23: DSA sourcing
FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Active DSA's 1463 1464 1316 1174 1184 Total Disbursement 8947 1966 2019 1879 2313 (Crores) Total DSA Sourced Amount(Crores) 7302 1667 1651 1500 1852 % share of total business 82% 85% 82% 79% 80% Share of Top 20 DSA's Amount(Crores) 1011 247 233 209 230 % share of tot
Slide 24: Share of business sourced by DSA
87% 86% 85% 82% 80% 80% 80% 78% Q1 FY 23 Q2 FY 23 Q3 FY 23 Q4 FY 23 Q1 FY 24 Q2 FY 24 Q3 FY 24 Q4 FY 24 *72% of AUM sourced by DSA www.canfinhomes.com 23
Slide 25: Loan portfolio and branches by region
Branches Loan Portfolio 60% 71% 72% 16% 14% 14% 13% 11% 11% 4% 5% 2% 2% 2% 1% Central East North South West Central East North South West FY 23 FY 24 www.canfinhomes.com 24
Slide 26: Loan book movement and run off
* Amt in Crore Opening Disbursement Amortization+ Closing Balance Run Off Balance(A) (B) Prepayment (D=A+B-C) E= C/A (C) Mar-21 21026 2002 902 22126 4.29% Q1 FY 22 22126 894 799 22221 3.61% Q2 FY 22 22221 2208 845 23584 3.89% Q3 FY 22 23584 2472 965 25091 4.18% Q4 FY 22 25091 2730 1110 26711 4.50% Q
Slide 27: Category-wise product-wise distribution of loan book
CATEGORY-WISE PRODUCT-WISE DISTRIBUTION OF LOAN BOOK * Amt in Crore Sl. Mar - 23 Jun - 23 Sep - 23 Dec - 23 Mar - 24 Particulars No. O/s Amt. 0/s Amt 0/s Amt 0/s Amt 0/s Amt 1 Salaried & Professionals i) Housing Loans 21071 21602 22067 22442 22971 ii) Top-up Personal Loans 960 990 1020 1040 1076 iii
Slide 28: Funding mix
Funding Mix @ Mar 2024 (as %) Funding Mix @ Mar 2023 (as %) Deposits Deposits CP 1% CP 1% 7% 5% NCD NCD 17% 17% Banks Banks 54% NHB 59% NHB 16% 23% Total Borrowings – Rs. 31863 Crore Total Borrowings – Rs. 29068 Crore www.canfinhomes.com 27
Slide 29: Yield, cost of funds, spread and margin trends
3.69% 9.87% 9.84% 9.93% 10.01% 3.47% 3.48% 3.62% 3.73% 3.37% 10.07% 8.11% 2.66% 7.35% 2.60% 7.40% 2.67% 7.51% 7.32% 2.55% 2.52% 7.32% 5.56% 2.36% Q3 FY 22-23 Q4 FY 22-23 Q1 FY 23-24 Q2 FY 23-24 Q3 FY 23-24 Q4 FY 23-24 Q3 FY 22-23 Q4 FY 22-23 Q1 FY 23-24 Q2 FY 23-24 Q3 FY 23-24 Q4 FY 23-24 www.canfin
Slide 30: NPA amount and percentage
* Amt in Crore 96 NPA Amount NPA% 93 Quarter Without Only Without Only 64 Restructur Restructur Restructur Restructur 20 ed accts ed ed accts ed 2 Q4FY23 172 2 0.55% 0.005% Q1FY24 186 20 0.57% 0.06% 213 Q2FY24 190 64 0.57% 0.19% 186 190 193 172 Q3FY24 213 96 0.62% 0.28% Q4FY24 193 93 0.55% 0.26% Q4F
Slide 31: Asset classification and provisions
* Amt in Crore Provision as Balance as on Provision as Asset Classification ECL Stages per ECL 31 Mar 2024 per IRAC Model Standard Asset 1 31684 SMA 0 1 1381 134.29 156.31 SMA 1 2 852 SMA 2 2 796 NPA 3 286 139.70 139.17 Total Portfolio 34999 273.99 295.48 Undisbursed Loan Commitment 1452 4.22 Manage
Slide 32: Gross NPA & Net NPA, provision held
Gross NPA & Net NPA (%) Provision held * Amt in Crore 0.91 0.82 34 0.76 34 0.63 34 0.55 17 17 0.49 141 0.43 0.42 139 0.34 112 0.26 91 96 Q4 FY 22-23 Q1 FY 23-24 Q2 FY 23-24 Q3 FY 23-24 Q4 FY 23-24 Q4 FY 22- 23 Q1 FY 23- 24 Q2 FY 23- 24 Q3 FY 23- 24 Q4 FY 23- 24 Provision for NPA Management Overlay w
Slide 33: Provision coverage as % of GNPA
* Amt in Crore FY23 As % of FY24 As % of GNPA GNPA Gross NPA 174 286 A. ECL Provision (Stage 3) 91 52% 139 49% B. Management Overlay 17 34 Total Provision available 108 62% 173 61% (A+B) C. Prov for Restructured 68 56 Pool Total Provision available 176 101% 229 80% (A+B+C) D. Provision for Std Asset
Slide 34: Shareholding by category
SI No. Category shareholding as % 4.86 9.36 29.99 1 Promoter 29.99 11.51 2 Mutual Funds 25.28 3 Individual 19.00 4 Foreign Corporate Bodies 11.51 19.00 5 Bodies Corporate 9.36 25.28 6 Others 4.86 7 Grand Total 100.00 Promoter Mutual Funds Individual Foreign Corporate Bodies Bodies Corporate Others w
Slide 35: Process and system initiatives implemented
Centralized Disbursement Implemented from 03/10/2023 Centralized Vendor Payments Implemented from 15/03/2024 Online Reconciliation Implemented from November 2023 CRM All branches covered from 01/10/2023 Litigation Management Implemented from 22/08/2023 Software Quarterly Cluster level risk monitorin
Slide 36: Planned risk and technology initiatives
✓ RCSA ✓ Fraud control unit will be augmented – ITR, PAN, Aadhar, Phone and Mail IDs verification through App – Pilot done at 18 branches. ✓ App based valuation. ✓ Exploring centralized collections through SMS/Whats app ✓ AI based analytics to identify EWS www.canfinhomes.com 35
Slide 37: Branch offices by state
(219 BRANCH OFFICES) • Odisha – Bhubaneshwar, • Punjab – Jalandhar Berhampur, Jharsuguda, • Telangana – Hyderabad (13 Cuttack branches), Siddipet, Warangal, • Chandigarh Karimnagar, Khammam, • Bihar – Patna, Darbhanga Mancherial, Nizamabad • Rajasthan – Alwar, Jaipur, Mansarovar, Kota, Udaipur, • Ta
Slide 38: 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,