Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Group — Investor Presentation (November 2017)
41 slides from Sammaan Capital's investor presentation, Nov 15, 2017
Slide 1: Indiabulls Group
Indiabulls Indiabulls Group
Slide 2: Indiabulls Group Companies
Indiabulls Group Companies Indiabulls Group Market Capitalisation: ₹ 768 Bn Indiabulls Housing Indiabulls Indiabulls Finance LImited Ventures Limited Real Estate Limited Rental Portfolio Housing Finance Consumer Finance Development Properties Market Cap ₹ 519.9 Bn Market Cap ₹ 130.4 Bn Market Cap ₹
Slide 3: Shareholder Returns
Shareholder Returns ₹ 3,349 Value of Money Invested In IBHFL ₹ 19 2004 2017 The 13-year CAGR for NIFTY is 11.8% and 12-year CAGR for Bank Nifty is 16.7% Minority shareholders since IPO have subsequently received shares in all group companies in same proportion as promoters through the following: Yea
Slide 4: A Track Record of Steady Growth
A Track Record of Steady Growth Group Revenues Group PBT CAGR: 23% CAGR: 21% 153 44 127 37 106 30 83 25 65 20 56 16 45 14 FY-11 FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-11 FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 Group PAT Group Dividend Payout* CAGR: 23% 34 CAGR: 28% 15 16 28 13 23 12 19 15 8 10 12 3 4 FY
Slide 5: Indiabulls Group: Dividend Payments and Market Cap
Indiabulls Group: Dividend Payments and Market Cap Over ₹ 83 Bn of dividend, excluding tax, paid back to shareholders till date Top dividend paying listed Indian promoter owned Market capitalization of listed Indian promoter group/companies for FY17 owned group/companies 1. Tata Group 9,379 2. Relia
Slide 6: Indiabulls Ventures
Indiabulls VENTURES
Slide 7: IVL Finance Product Suite
IVL Finance Product Suite IVL Finance Personal Loans Business Loans Gold Loans Urban centres Semi-urban and Rural centres Unsecured loan product Secured loan product 7
Slide 8: Indian Personal Loans Market
Indian Personal Loans Market • Total Personal Loans book stood at ₹ 2.4 Tn.1 at the end of Mar 17, growing at a CAGR of 18% for last 5 years • Disbursals for FY17 was ₹ 1.35 Tn. which is 57% of the total outstanding book, indicative of the vast potential for growth in this segment1 • Personal Loans
Slide 9: Indian SME Lending Market
Indian SME Lending Market • Indian MSME sector is a network of 51 Mn. enterprises contributing to 37.5% of India’s GDP and providing employment to 117 Mn. people • Viable credit demand is estimated at ₹ 10 Tn.1 • Business loan book stood at ₹ 2.0 Tn.2 at the end of Mar 17 1. IFC Report 2. Credit Inf
Slide 10: Indian Gold Loans Market
Indian Gold Loans Market • India is the largest consumer of gold globally • India possesses over 20,000 tonnes of gold worth more than $ 800 Bn; gold loan penetration is only ~4% • Drivers of Gold Loan business For consumers For lenders − Idle gold can be monetised for productive use − Collateral in
Slide 11: First Time App-based Personal Loans
First Time App-based Personal Loans • To establish and authenticate • Indicates customer’s risk score basis Aadhaar customer identity Indiabulls Score probability of default arrived at from past track record of loan repayments • Type of loan taken in past, Detailed Data repayment track record as per
Slide 12: New Brand of IVL Finance Ltd.
New Brand of IVL Finance Ltd. • Introducing new brand for the app under Indiabulls umbrella • ‘Dhani’ means ‘Wealthy’ – The word ‘Dhani’ is derived from Sanskrit and has the same meaning across all Indian languages 12
Slide 13: Easy, Aadhaar-based Process Flow
Easy, Aadhaar-based Process Flow Application & Aadhaar Based Sanction Disbursal Document Completion Verification and KYC Simple and easy to use Verification through Instant credit decisioning Disbursement to interface government approved based on detailed data customer’s bank account Aadhaar analyti
Slide 14: Seamless and Simple Electronic Documents
Seamless and Simple Electronic Documents Mandate Registration and Instant Credit in Bank E-sign Customer Service Automatic Debit Account Single e-signature for EMIs directly debited from Loan amount instantly Service to existing multiple uploaded customer’s bank account transferred to the customers
Slide 15: 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 : Non-Executive Chairman • Mr. Gagan Banga : Non-Executive Director • Mr. Divyesh Shah : Executive Director and CEO • Mr. Pinank Shah : Executive Director and CEO, IV
Slide 16: Indiabulls Real Estate
Indiabulls REAL ESTATE
Slide 17: Major Reforms Related to Real Estate sector
Major Reforms Related to Real Estate sector Regulatory Act (RERA) GST REIT Speedy settlement of disputes Single, unified market with tax Tax benefit and clarity of regulations transparency and predictability, to lead to increased investor interest Boost foreign/domestic investment promoting ease of
Slide 18: Indiabulls Real Estate Portfolios
Indiabulls Real Estate Portfolios Indiabulls Real Estate Ltd Development Properties Rental Properties 18
Slide 19: Rental Properties
Rental Properties Projected Leasable Area Annuity Revenue Property (Mn. sq.ft. ) in FY 20-21 (₹ Bn) Completed Properties Indiabulls Finance Centre & One Indiabulls Centre, Mumbai 3.3 6.9 One Indiabulls Park, Chennai 1.9 0.9 Total 5.2 7.8 Properties under construction & in Planning/Approval Process I
Slide 20: Rental Properties – Operational
Rental Properties – Operational One Indiabulls Centre, Mumbai Indiabulls Finance Centre, Mumbai One Indiabulls Park, Chennai 20
Slide 21: Development Properties
Development Properties Pending Gross Pending Handover Collections Area Development Construction Net Surplus Expected in Project Location % Area Sold from Area (Mn. sq. ft.) Value (GDV) Cost (₹ Bn) Next 4 to 5 Sold (₹ Bn) (₹ Bn) Quarters (₹ Bn) Blu Estate & Club, Worli Mumbai 1.36 58.3 99.3% 27.1 5.3
Slide 22: Development Properties
Development Properties Blu Estate & Club, Mumbai Blu Estate & Club, Mumbai Sky Forest, Mumbai Greens, Panvel Golf City, Savroli Centrum Park, Gurgaon Enigma, Gurgaon Greens, Chennai Mega Mall, Jodhpur 22
Slide 23: Rental & Development Properties Summary
Rental & Development Properties Summary Rental Properties Net Worth (₹ Bn) 25.0 Gross Debt (₹ Bn) 44.4 Net Debt (₹ Bn) 41.2 Annuity Revenue for H1 FY18 (₹ Bn) 3.5 Annualised Annuity Revenue for FY18 (₹ Bn) * 6.9 * Annuity Revenue from completed properties based on existing agreements on leased area.
Slide 24: Indiabulls Housing Finance
Indiabulls HOUSING FINANCE
Slide 25: Indian Home Loans Market
Indiabulls HOUSING FINANCE Indian Home Loans Market 25
Slide 26: Indian Housing Landscape
Indian Housing Landscape Regulator Government Push RERA to bring greater transparency Housing for All, PMAY, etc. and discipline Easier Access to Credit Fiscal Incentives Infrastructure status to housing; RBI, SEBI, Tax incentives/subsidies for IRDA eased exposure norms to mortgage buyers/developers
Slide 27: Housing Demand in India
Housing Demand in India • Estimated housing shortage: ~ 40 Mn houses (urban & rural) • Drivers of incremental demand: Current population growth Demand for 3.4 Mn houses p.a. @ 1.3% p.a. Ongoing nuclearisation Demand for 2.5 Mn houses p.a. @ 0.9% p.a. Rising income/aspirations – per capita GDP growth
Slide 28: Housing: From Social Objective to Centrepiece Economic Policy
Housing: From Social Objective to Centrepiece Economic Policy Opportunity to propel rural and urban economic activity and revive the capex cycle - Housing sector: 4th largest employment provider in India*: employment for both semi-skilled and unskilled labour - Real estate construction has a large m
Slide 29: PMAY and Tax Incentives for Mid-Income Affordable Housing
PMAY and Tax Incentives for Mid-Income Affordable Housing Illustration for Indiabulls Housing’s average Home Loan - House value : ₹ 3,500,000 - Home loan amount : ₹ 2,400,000 (Loan to value of 70%) - PMAY subsidy : ₹ 230,156 - Net loan amount : ₹ 2,169,844 Principal Repayment Opening Loan Interest P
Slide 30: EMI Smaller than Rent Cheque: PMAY and Tax Incentive
EMI Smaller than Rent Cheque: PMAY and Tax Incentive for Mid-Income Affordable Housing Rental Yield v/s Home Loan Cost 5.0% 4.0% 3.4% 3.5% 3.9% 3.1% 3.4% 3.2% 2.3% 2.9% 2.6% 2.6% 2.7% 0.30% Rental yield Effective Interest Rate on Home Loans with PMAY (0.30%) Source: NHB; Industry reports Increasing
Slide 31: Mortgage Market Growth: HFCs Stealing a March
Mortgage Market Growth: HFCs Stealing a March Growing HFC Market Share in a Steadily Expanding Home Loans Market 17% 18% CAGR HFC CAGR: 21% 22% 14,405 17% 18% 12,384 16% 10,650 40% 7,526 8,887 40% 6,249 39% 4,595 5,538 38% 13% 36% 37% 11% 11% 34% 33% 7% Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-
Slide 32: Financial and Operational Highlights
Financial and Operational Highlights 32
Slide 33: Business Update
Business Update Key Financial Highlights H1 FY 17-18 FY17 FY16 Balance Sheet (₹ Bn) 1,157.53 1,037.05 764.36 Loan Assets (₹ Bn) 1,002.57 913.01 686.83 NII (₹ Bn) 27.13 47.68 37.94 PAT (₹ Bn) 16.49 29.06 23.45 EPS (₹) 38.87 68.80 59.84 GNPA 0.78% 0.85% 0.84% NNPA 0.31% 0.36% 0.35% 33
Slide 34: Consistent Track Record
Consistent Track Record Balance Sheet 1,158 1,066 CAGR: 27% 1,037 913 1,024 764 821 600 668 712 572 464 495 534 290 322 345 354 367 391 416 430 438 444 240 241 269 141 175 194 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY11 FY11 FY11 FY11 FY12 FY12 FY12
Slide 35: Balance Sheet Assets and Loan Assets
Balance Sheet Assets and Loan Assets Balance Sheet Assets Loan Assets 3% 22% 19% 78% 78% Loan Book Cash & Liquid Investments* Other Assets Retail Mortgage Loan Corporate Mortgage Loans • Home loans, which form the majority of incremental disbursals, are disbursed at an average ticket size of ₹ 2.4 M
Slide 36: Asset Quality
Asset Quality As at September 30, 2017 0.84% 0.83% (in ₹ Bn) 0.78% NPA (90+ dpd*): 7.82 Provisions for 0.49% 0.49% 0.47% Contingencies: 12.24 0.35% 0.34% Of which 0.31% NPAs: 4.71 Other provisioning: 7.53 Regulatory Provisioning: 7.70 Sep-15 Sep-16 Sep-17 Excess Provisioning over Gross NPA General &
Slide 37: Liabilities Profile
Indiabulls HOUSING FINANCE Liabilities Profile
Slide 38: Change in Funding Mix
Change in Funding Mix 3% 3% 3% 9% 10% 10% 37% 35% 33% ECB Sell Down Bank Loans 51% 52% 54% Debentures and Securities Mar-17 Jun-17 Sep-17 Total Funding (₹ Bn) Net Incremental Contribution to Incremental Sep 17 Mar 17 in 6 Months Borrowings in last 6 Months Bank Loans 353.2 346.6 6.6 5.0% Debentures
Slide 39: 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 : Executive Chairman • Mr. Gagan Banga : Vice Chairman, Managing Director and CEO • Dr. K.C. Chakrabarty : Former Deputy Governor, The Reserve Bank of India • Justice
Slide 40: Credit Ratings
Credit Ratings Long Term Short Term Rating Rating ICRA(A Moody’s Investor Service Company) AAA A1+ CARE Ratings AAA A1+ Brickwork Ratings AAA CRISIL (a Standard & Poor’s Company) AA+ A1+ [Outlook: Positive] 40
Slide 41: Thank You
Indiabulls Thank You
Indiabulls Group — Investor Presentation (November 2017) on 6ix