Iifl Finance Limited · NSE:IIFL
Iifl Finance — Q1 FY25 Earnings Presentation
56 slides from Iifl Finance's earnings presentation, Aug 6, 2024
Slide 1: Exchange intimation: Press Release and Presentation on Q1 results
August 06, 2024 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 Scr
Slide 2: Press Release: IIFL Finance Q1FY25 Results update
Annexure 1 IIFL Finance Limited Press Release For immediate publication Mumbai, India August 6, 2024 IIFL Finance Q1FY25 Results update IIFL Finance Q1FY25 profit after tax1 at Rs. 338 Crore, down 28% y-o-y For the quarter ended June 30, 2024, the Company reported net profit after tax of Rs. 338 Cr
Slide 3: Management commentary and financial performance review
Mr. Nirmal Jain, Managing Director, IIFL Finance Ltd., commented on the results: “The recent RBI embargo on gold loans has impacted our financial performance during the quarter. However, we have diligently followed all RBI guidelines and are committed to full compliance. We have taken significant st
Slide 4: Business segment review
Business segment review Home Loans: At the end of the quarter, retail home loan assets grew by 23% y-o-y and 2% q-o-q to Rs 28,089 Cr. The primary focus in this segment is on affordable and non-metro housing loans. We operate out of 390 dedicated home loan branches PAN India. IIFL Home finance is al
Slide 5: About IIFL
About IIFL IIFL Group is one of the leading players in the Indian financial services space. Prior to the Composite Scheme of Arrangement (effective May 2019), IIFL Finance Limited (Erstwhile “IIFL Holdings Limited”) (Bloomberg Code: IIFL IN, NSE: IIFL, BSE: IIFL) was engaged in the business of finan
Slide 6: Performance review
Annexure 2 Performance review Quarter ended June, 2024 Bloomberg: IIFL IN (Q1FY25) August 6, 2024
Slide 7: RBI directive & response
RBI directive & response 1. RBI Order of March 4, 2024: • Action: Cease and desist from sanctioning/disbursing gold loans or assigning/securitising/selling any gold loans • Permitted Activities: Continue servicing existing gold loan portfolio through usual collection and recovery processes 2. Superv
Slide 8: RBI directive - Impact & outlook
RBI directive- Impact & outlook 4. Impact on Gold Loan AUM • AUM Reduction: Decreased from ~₹26,081 Cr (March 4, 2024) to ~₹12,162 Cr (August 5, 2024) • Customer Accounts: Over one million customers have closed their accounts and safely taken their jewellery • Co-lending/DA Banks: Paid ~₹10,868 Cr b
Slide 9: IIFL Finance (Consolidated)
IIFL FINANCE (CONSOLIDATED)
Slide 10: IIFL Finance (Consolidated): Q1FY25 Results snapshot
IIFL Finance (Consolidated): Q1FY25 Results snapshot ₹ Cr Q1FY25 Q4FY24 Q-o-Q Q1FY24 Y-o-Y Loan AUM 69,610 78,960 (12%) 68,178 2% PPOP1 647.4 989.7 (35%) 792.0 (18%) PAT (pre NCI2) 338.2 430.6 (21%) 472.9 (28%) PAT (post NCI2) 288.1 373.4 (23%) 425.4 (32%) Gross NPA % 2.2% 2.3% (8 bps) 1.8% 40 bps N
Slide 11: IIFL Finance (Consolidated): Q1FY25 Results
IIFL Finance (Consolidated): Q1FY25 Results ₹ Cr Q1FY25 Q4FY24 Q-o-Q Q1FY24 Y-o-Y Interest income 2,046.6 2,195.0 (7%) 1,825.2 12% Interest expense (1,034.0) (1,074.4) (4%) (887.8) 16% Net interest income 1,012.6 1,120.5 (10%) 937.4 8% Non-fund based income 380.8 638.2 (40%) 487.8 (22%) Total income
Slide 12: IIFL Finance (Consolidated): Income Analysis
IIFL Finance (Consolidated): Income Analysis ₹ Cr Q1FY25 Q4FY24 Q-o-Q Q1FY24 Y-o-Y Loan Book (Ind AS Balance sheet) 45,470 50,833 (11%) 41,515 10% Assigned assets 14,609 16,488 (11%) 17,700 (17%) Co-lending book 9,532 11,639 (18%) 8,963 6% Loan Assets under management 69,610 78,960 (12%) 68,178 2% I
Slide 13: Consolidated balance sheet as at June 30, 2024
Consolidated balance sheet as at June 30, 2024 ASSETS (₹ Cr) LIABILITIES AND EQUITY (₹ Cr) 1 Financial Assets 1 Financial Liabilities (a) Cash and Bank Balances 4,448 (a) Payables 239 (b) Receivables 178 (b) Borrowings (c) Loan Assets 45,545 - NCDs 10,397 (d) Investments 4,926 - Bank Borrowings 26,6
Slide 14: IIFL Finance (Consolidated): Key highlights
IIFL Finance (Consolidated): Key highlights AUM (₹ Cr) Profit after tax2 (₹ Cr) Return on assets/equity Return on Assets Return on Equity 78,960 69,610 64,638 1,974 20.6% 19.9% 18.4% 51,210 1,608 15.3% 37,951 44,688 1,188 11.3% 3.4% 10.3% 761 3.3% 503 338 2.7% 2.3% 1.5% 2.0% FY20 FY21 FY22 FY23 FY24
Slide 15: IIFL Finance (Consolidated): Funding mix
IIFL Finance (Consolidated): Funding mix Borrowing (₹ Cr) Borrowing mix Cost of borrowing 6% 6% 5% 8% 4% 15% 17% 18% 17% 17% 45,993 39,777 42,210 41,416 37,886 25% 25% 24% 23% 25% 9.1% 9.1% 9.1% 9.1% 9.0% 55% 53% 53% 52% 55% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1
Slide 16: Adequate liquidity, well covered to meet obligations and sustain growth
Adequate liquidity, well covered to meet obligations and sustain growth (₹ Cr) Asset Liability Match (ALM) - Surplus across all buckets Well covered Debt Repayment Schedule 62,486 15,046 13,788 47,085 62,486 13,070 12,567 40,774 Interest Free Cash + 11,009 42,715 10,123 undrawn lines = 8,517 24,717
Slide 17: Strategic shifts to retail, secured credit to small businesses and homes
Over the last 5 years, we have made strategic shifts to focus on providing retail, secured credit to small businesses and homes Mix% Mix% Loan AUM (₹ Cr) FY20 FY21 FY22 FY23 FY24 Q1FY24 Q4FY24 Q1FY25 Q0Q % YoY % Yield FY20 Q1FY25 Home Loan 12,443 14,439 17,727 21,800 27,438 22,838 27,438 28,089 2% 2
Slide 18: Non performing assets have consistently been lower through cycles
Non performing assets have consistently been lower through cycles GNPA % Q1FY25 Q4FY24 QoQ Q1FY24 YoY GNPA% NNPA% Home Loan 1.29% 1.19% 0.09% 1.95% (0.66%) 3.15% Gold Loan 2.93% 3.83% (0.90%) 0.82% 2.11% 2.04% 1.98% 2.32% 2.25% Loan against property 3.59% 2.68% 0.91% 2.72% 0.87% 1.74% 1.83% 1.84% Di
Slide 19: Listed holding NBFC with 2 major subsidiaries
IIFL Finance is listed holding NBFC with 2 major subsidiaries for housing & Micro-finance IIFL Finance (Listed) 80% 99.6% IIFL Home IIFL Finance IIFL Samasta Finance Standalone Finance Business: Business: Business: Home loans, Home Gold loans, Unsecured Microfinance, Equity (Secured MSME loans, Home
Slide 20: Reconciliation of reported consolidated results with group entities
Reconciliation of reported consolidated results with group entities IIFL Finance IIFL Home IIFL Samasta Intergroup IIFL Finance (₹ Cr) Standalone Finance* Finance adjustments Consolidated Interest income 670.6 725.6 584.2 66.1 2,046.6 Interest expense (429.8) (370.3) (234.9) 1.0 (1,034.0) Net intere
Slide 21: IIFL Finance (Standalone)
HIF L FINANCE IIFL FINANCE (STANDALONE)
Slide 22: IIFL Finance (Standalone): Q1FY25 Results
IIFL Finance (Standalone): Q1FY25 Results ₹ Cr Q1FY25 Q4FY24 Q-o-Q Q1FY24 Y-o-Y Interest income 670.6 830.0 (19%) 714.8 (6%) Interest expense (429.8) (484.3) (11%) (387.8) 11% Net interest income 240.9 345.7 (30%) 327.0 (26%) Non-fund based income 146.0 497.0 (71%) 273.3 (47%) Total income 386.8 842
Slide 23: IIFL Finance (Standalone): Key highlights
IIFL Finance (Standalone): Key highlights AUM (₹ Cr) Profit after tax2 (₹ Cr) Return on assets/equity Return on Assets Return on Equity 29,250 806 25,573 745 19,199 21,109 20,498 585 16,057 18.5% 343 17.6% 3.5% 11.1% 149 4.1% 8.8% 3.3% 0.8% 1.5% 2.3% (1.5%) (23) (0.3%) FY20 FY21 FY22 FY23 FY24 Q1FY2
Slide 24: IIFL Finance (Standalone): Key business units
IIFL Finance (Standalone): Key business units ATS Loan AUM (₹ Cr) FY20 FY21 FY22 FY23 FY24 Q1FY24 Q4FY24 Q1FY25 Q0Q % YoY % Yield (₹ lakhs) Gold loan 9,125 13,149 16,228 20,733 23,354 22,142 23,354 14,727 (37%) (33%) 19.6% 0.5 Digital loan 2,923 2,025 1,884 2,512 4,302 2,899 4,302 4610 7% 59% 21.4%
Slide 25: IIFL Finance (Standalone): Business update
IIFL Finance (Standalone): Business update AUM mix Spread Average ticket size1 (₹ lakhs) 3% 3% 3% 2% 1% 1% 11% 7% 4% 3% 22% 18% 15% 22% 20.1% 18.7% 19.7% 18.4% 19.1% 18.5% 9% 10% 1.08 11% 1% 1.07 18% 1% 0.89 0.92 0.95 0.98 10.5% 9.4% 10.6% 9.4% 10.0% 9.3% 68% 77% 81% 80% 72% 57% 9.6% 9.3% 9.1% 9.0%
Slide 26: IIFL Finance (Standalone): Funding mix
IIFL Finance (Standalone): Funding mix Borrowing (₹ Cr) Borrowing mix Cost of borrowing 11% 12% 11% 4% Rating: AA/RWD by CRISIL; AA/RWN by ICRA, 15% 9% 9% 9% 10% 8% CARE, India Rating, Brickwork 19,609 30% 17,694 31% 30% 25% 25% 16,554 16,297 16,233 9.2% 9.2% 54% 51% 58% 9.1% 9.1% 48% 50% 9.0% Q1 FY
Slide 27: IIFL Finance (Standalone): Liquidity update
IIFL Finance (Standalone): Liquidity update (₹ Cr) Asset Liability Match (ALM) - Surplus across all buckets Well covered Debt Repayment Schedule 26,450 19,285 26,450 5,589 4,934 18,430 4,716 Free Cash + 4,575 17,927 undrawn lines = 3,985 Interest 12,485 3,735 14,634 ₹2,855 Cr 3,394 9,828 2,817 7,405
Slide 28: IIFL Finance (Standalone): Competitive edge
IIFL Finance (Standalone): Competitive edge Strong visibility & Own network & people Digital technology brand recall • Aggressive investment in brand • Industry first proprietary tablet • Over 2,745 dedicated gold loan awareness, visibility and based fully digitized processes for branches spread acr
Slide 29: IIFL Home Finance
HIF L FINANCE = 5) Z Z Fa = = je) co | =
Slide 30: IIFL Home Finance: Q1FY25 Results
IIFL Home Finance: Q1FY25 Results ₹ Cr Q1FY25 Q4FY24 Q-o-Q Q1FY24 Y-o-Y Interest income 725.6 700.2 4% 614.9 18% Interest expense (370.3) (361.2) 3% (321.6) 15% Net interest income 355.3 339.0 5% 293.3 21% Non-fund based income 173.5 216.8 (20%) 147.0 18% Total income 528.9 555.8 (5%) 440.3 20% Oper
Slide 31: IIFL Home Finance: Key highlights
IIFL Home Finance: Key highlights AUM (₹ Cr) Profit after tax (₹ Cr) Return on assets/equity Return on Assets Return on Equity 35,499 35,975 1,017 28,512 24.9% 23,617 768 20.3% 16.9% 14.7% 18,495 20,694 593 17.6% 13.8% 401 245 241 3.6% 3.9% 4.4% 3.9% 1.8% 2.7% FY20 FY21 FY22 FY23 FY24 Q1FY25 FY20 FY
Slide 32: IIFL Home Finance: Key business units
IIFL Home Finance: Key business units ATS Loan AUM (₹ Cr) FY20 FY21 FY22 FY23 FY24 Q1FY24 Q4FY24 Q1FY25 Q0Q % YoY % Yield1 (₹ lakhs) Affordable home loan 12,443 14,439 17,727 21,800 27,438 22,838 27,438 28,089 2% 23% 11.0% 15 Home equity (Secured 4,882 5,381 5,346 5,905 7,250 5,958 7,250 7,071 (2%)
Slide 33: IIFL Home Finance: Business update
IIFL Home Finance: Business update AUM mix Spread Average ticket size1 (₹ lakhs) 6% 4% 2% 3% 2% 2% 20% 20% 11.6% 11.6% 11.8% 12.5% 12.5% 26% 23% 21% 11.2% 24.39 26% 9.1% 8.3% 8.3% 20.36 20.48 8.4% 7.9% 8.0% 15.60 14.18 4.2% 4.2% 14.26 67% 70% 75% 76% 77% 78% 3.2% 3.3% 3.8% 2.5% FY20 FY21 FY22 FY23 F
Slide 34: IIFL Home Finance: Funding mix
IIFL Home Finance: Funding mix Borrowing (₹ Cr) Borrowing mix Cost of borrowing 1% 1% 1% 3% 5% Rating: AA/RWD by CRISIL; AA/RWN by ICRA, 22% 24% 27% 27% CARE, India Rating, Brickwork 28% 17,481 17,054 15,409 16,238 24% 14,123 27% 26% 24% 23% 8.4% 53% 47% 46% 46% 44% 8.3% 8.3% 8.3% 8.2% Q1 FY24 Q2 FY
Slide 35: IIFL Home Finance: Liquidity update
IIFL Home Finance: Liquidity update (₹ Cr) Asset Liability Match (ALM) - Surplus across all buckets Well covered Debt Repayment Schedule 27,475 27,475 4,450 4,175 17,212 3,983 3,864 11,809 16,594 3,295 Interest Free Cash + 3,055 undrawn lines = 10,977 ₹1,724 Cr 2,151 5,194 1,786 1,608 3,559 2,590 4,
Slide 36: IIFL Home Finance: Competitive edge
IIFL Home Finance: Competitive edge Low-risk funding mix Operating model Technology model • Healthy share of Direct • Achieving digital maturity with • Proprietary technologies and Assignment and Co-lending end-to-end digital processes for continuous digital innovation in along with direct funding f
Slide 37: IIFL Samasta Finance
HIF L FINANCE IIFL SAMASTA FINANCE
Slide 38: IIFL Samasta Finance: Q1FY25 Results
IIFL Samasta Finance: Q1FY25 Results ₹ Cr Q1FY25 Q4FY24 Q-o-Q Q1FY24 Y-o-Y Interest income 584.2 601.4 (3%) 487.5 20% Interest expense (234.9) (241.1) (3%) (198.8) 18% Net interest income 349.3 360.3 (3%) 288.7 21% Non-fund based income 127.3 130.7 (3%) 94.6 35% Total income 476.6 491.0 (3%) 383.2 2
Slide 39: IIFL Samasta Finance: Key highlights
IIFL Samasta Finance: Key highlights AUM (₹ Cr) Profit after tax (₹ Cr) Return on assets/equity Return on Assets Return on Equity 14,211 13,138 503 10,552 29.4% 31.5% 6,484 24.2% 4,796 3,400 107 128 119 11.8% 11.4% 5.0% 4.8% 6.3% 4.3% 66 51 1.9% 0.9% 1.7% FY20 FY21 FY22 FY23 FY24 Q1FY25 FY20 FY21 FY
Slide 40: IIFL Samasta Finance: Key business units
IIFL Samasta Finance: Key business units 1 ATS1 Loan AUM (₹ Cr) FY20 FY21 FY22 FY23 FY24 Q1FY24 Q4FY24 Q1FY25 Q0Q % YoY % Yield (₹ lakhs) Microfinance 3,289 4,440 5,821 9,072 11,891 9,457 11,891 10,827 (9%) 14% 24.5% 0.4 Home equity (Secured 21 58 329 767 1,118 817 1,118 1,126 1% 38% 22.8% 0.6 busin
Slide 41: IIFL Samasta Finance: Business update
IIFL Samasta Finance: Business update AUM mix Spread1 Average ticket size1 (₹ lakhs) 0% 4% 2% 3% 3% 4% 2% 3% 4% 23.8% 24.4% 24.4% 2% 5% 5% 22.6% 22.4% 21.9% 1% 1% 5% 7% 0.48 0.49 8% 9% 0.44 13.8% 13.8% 13.9% 0.39 97% 11.9% 12.0% 11.9% 0.33 93% 90% 86% 84% 82% 0.28 10.7% 10.4% 10.0% 10.0% 10.6% 10.5%
Slide 42: IIFL Samasta Finance: Funding mix
IIFL Samasta Finance: Funding mix Borrowing (₹ Cr) Borrowing mix Cost of borrowing 8,903 2% 1% 3% 3% 4% Rating: AA/RWD by CRISIL AA/RWN by India 8,072 8,277 8,130 14% 19% 16% 16% 9% Rating AA/Stable by ACUITE 7,208 15% 17% 11% 17% 17% 69% 69% 64% 65% 71% 10.6% 10.6% 10.6% 10.5% 10.5% Q1 FY24 Q2 FY24
Slide 43: IIFL Samasta Finance: Liquidity update
IIFL Samasta Finance: Liquidity update (₹ Cr) Asset Liability Match (ALM) - Surplus across all buckets Well covered Debt Repayment Schedule 10,588 10,536 10,668 10,668 5,007 4,679 8,194 4,370 7,038 7,720 4,128 Interest Free Cash + 3,729 undrawn lines = 3,332 4,404 2,972 5,081 ₹2,274 Cr 2,433 2,928 1
Slide 44: IIFL Samasta Finance: Competitive edge
IIFL Samasta Finance: Competitive edge Balanced portfolio Strong Technology Focus Best-in-Class Asset Quality • Extensive focus on implementing • Industry leading asset quality • Growing Microfinance Portfolio technology across processes and across the key states of presence; with balanced mix of No
Slide 45: Corporate Information
IIFL FINANCE | way, CORPORATE INFORMATION
Slide 46: Uniquely placed to dominate non banking retail lending
Uniquely placed to dominate non banking retail lending Retail Lending Strong collateral or cash flow backed loans, in segments with robust growth potential Phygital Partnerships Physical Digital Banks Fintechs Network of 4,774 Innovative digital Unique capability to Harnessing fintech branches help
Slide 47: Distinguished board of directors in the company & its subsidiaries
Distinguished board of directors in the company & its subsidiaries A K Purwar Chairman & Non- Executive Director Former Chairman, SBI Govinda Rajulu Srinivasan Sridhar Kalengada Nirmal Jain* R Venkataraman* Chintala Managing Director Chairman & Non- Mandanna Nanaiah Joint Managing Director Chairman
Slide 48: 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 52.5 (Formerly CDC Group) Fairfax 15.2 2010 2016 Capital Group 8.9 Bank Muscat India Fund 3.3 Nomura 3.0 Vanguard 3.0 2007 2011 2022 DSP MF
Slide 49: Experienced senior management
Experienced senior management IIFL Finance IIFL Home Finance IIFL Samasta Finance Kapish Jain N Venkatesh Chartered Accountant, Cost Monu Ratra Strategic leadership Accountant and Company Qualified architect and MBA Program in microfinance at Secretary Harvard Group Chief Financial Officer ED & CEO
Slide 50: Environment, Social & Governance - Environment
Environment, Social & Governance - 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 developers improve funding to afford
Slide 51: Environment, Social & Governance - Social
Environment, Social & Governance - Social IIFL is firmly committed to support economic activity and financial inclusion through its loan offerings while adapting to changes in the external environment ▪ 75% of the branches are located in non-metros, semi-urban and rural ▪ 82% of the Unsecured MSME d
Slide 52: Environment, Social & Governance - Social
Environment, Social & Governance - Social CSR projects continue with creative use of technology Smart Shaala – Rajasthan (3 Districts) Skill Development Training in ‘Chef Trade’ for 160 Youths – Kupwara, Kashmir ▪ IIFL Foundation, has implemented the biggest TV based ▪ The programme aims to provide
Slide 53: Environment, Social & Governance - Governance
Environment, Social & Governance - Governance Establishing vision, mission and values and determining, reviewing the goals and policies of the Company from time to time Promote sound corporate governance Corporate policies and guidelines: Board Diversity practices, ethical standards, and compliance
Slide 54: Our ESG Impact
Our ESG Impact 49 Note: For more refer our Sustainability report – click here
Slide 55: Link to databook
Link to databook 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 databook Click here to download databook 50
Slide 56: Thank you
Thank you Published in August 2024 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 taxat