Indostar Capital Finance Limited · NSE:INDOSTAR
Indostar Capital Finance — Q1 FY22 Earnings Presentation
42 slides from Indostar Capital Finance's earnings presentation, Aug 12, 2021
Slide 1: Q1FY22 Results Update
INDOSTAR CAPITAL FINANCE LIMITED Q1FY22 Results Update 12 August 2021
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”) have been prepared by IndoStar Capital Finance Limited (“IndoStar” or the “Company”) solely for information purposes and do not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or
Slide 3: Discussion Summary
Discussion Summary Strategy Quarterly Results Business Update Shareholding Structure
Slide 4: Strategy
Strategy • To build a 100% retail company • To reduce the Corporate book to less than 10% of AUM by March 22 • To build a profitable retail platform with growth potential to deliver excellent value to all stakeholders. • To build a separate collection vertical to achieve collections efficiency and s
Slide 5: Laying foundation for future growth
Laying foundation for future growth 1. Strengthened Balance Sheet • Brought Brookfield as partner with Rs.1225 cr primary capital and strengthened Capital adequacy and Liquidity • Created additional provisions to overcome Covid impact 2. Reduced Corporate Lending Exposure • On track to become 100% r
Slide 6: Sector Outlook
Sector Outlook • Growth is in smaller cities and we are positioning ourselves to take advantage of the latent demand • Demand trends for Commercial vehicle show positive momentum. Increased footprint and balanced collection approach positions us well to take benefit. • Stronger demand from Consumpti
Slide 7: Discussion Summary
Discussion Summary Strategy Quarterly Results Business Update Shareholding Structure
Slide 8: Q1FY22 in Perspective
Q1FY22 in Perspective • Retail disbursement of Rs 628 cr with collection efficiency above 100% • Cost of funds for the quarter below 8.4% • Stable ALM and robust fund mobilisation pipeline • Continued reduction in Corporate lending book • Focus continues on expanding footprint and increasing yield •
Slide 9: Strong Liquidity & ALM
Strong Liquidity & ALM Particulars Jul-21 Aug-21 Sep-21 Q3 FY22 Q4 FY22 Opening cash & equivalents* 11,503 11,089 11,236 8,887 5,261 Loan repayment inflows [Principal] 627 626 690 2,842 2,966 Total inflow 12,131 11,714 11,926 11,728 8,228 Liability repayment [Principal] NCDs - 148 800 3,150 2,900 Te
Slide 10: Diversified Funding Profile
Diversified Funding Profile Funding Mix - Mar 2021 Funding Mix - Jun 2021 NCD 19% NCD 21% Equity 38% Equity 40% Banks 31% Banks 31% CP 0% CP 2% Securitisation Securitisation 8% 10% Incremental Funding Mobilized Strong Credit Ratings ₹ mn Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Borrowing Type Rating Firm Rat
Slide 11: Steady reduction in the Corporate book
Steady reduction in the Corporate book Corporate Lending AUM (₹ mn) 44,803 45,270 43,067 36,267 31,646 28,687 29,287 24,760 22,872 19,096 18,710 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 ~ INR 1,000 mn collected in July’21 10
Slide 12: Retail collections performance update
Retail collections performance update Retail Month Billing Total Collections % (₹ mn) (₹ mn) Apr-20 2,130 154 7.2 May-20 2,134 389 18.3 Jun-20 2,219 1,023 46.1 Jul-20 2,234 1,450 64.9 Aug-20 2,211 1,565 70.8 Sep-20 2,182 2,008 92.0 Oct-20 2,153 2,148 99.8 Nov-20 2,092 2,382 113.9 Dec-20 2,050 2,810
Slide 13: Post integration branch rationalisation on course
Post integration branch rationalisation on course 240 branches across 19 states * Some branches have multiple operating segments 240 233 212 215 217 218 208 227 222 207 202 207 49 44 48 64 65 69 10 10 10 10 10 10 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 SME Finance Housing Finance CV Finance Employ
Slide 14: Q1FY22 performance: Key Highlights
Q1FY22 performance : Key Highlights Strong Retail Franchise ~ 77% of AUM (v/s 71% in Execution of Retailisation Jun-20) Theme ICICI partnership AUM ~ ₹ 5,112 mn Comfortable liquidity; ~23% of Borrowings Strong Capitalisation & CRAR 35% Liquidity Debt : Equity ratio of 1.5x Net Revenue fr
Slide 15: Q1 FY22: Consolidated Profit & Loss Statement
Q1 FY22: Consolidated Profit & Loss Statement Particulars (₹ mn) Q1FY22 Q4FY21 QoQ % Q1FY21 YoY % Revenue from operations 2,653 2,792 (5%) 3,334 (20%) Interest expenses (1,387) (1,584) (12%) (1,838) (25%) Net revenue from operations 1,266 1,208 5% 1,496 (15%) People costs 490 380 29% 483 2% Operatin
Slide 16: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (₹ mn) Jun-21 Mar-21 QoQ % Jun-20 YoY % Equity 36,291 36,983 (2%) 39,512 (8%) Borrowings 55,573 60,076 (7%) 73,652 (25%) Other liabilities 3,960 3,757 5% - n.a Total liabilities 95,824 1,00,816 (5%) 1,13,164 (15%) Loan assets 67,827 71,393 (5%) 84,285 (20%) Tre
Slide 17: Q1FY22: Business Segment Performance
Q1FY22: Business Segment Performance CV SME Housing Corporate Particulars (₹ mn) Consolidated ^ Finance Finance Finance Lending Revenue from operations 1,178 452 297 587 2,653 Interest expenses (404) (219) (139) (298) (1,387) Net interest income 775 233 158 289 1,266 People costs 181 38 49 40 490 Op
Slide 18: Q1FY22: Quarterly Performance Trend (1/2)
Q1FY22: Quarterly Performance Trend (1/2) AUM (₹ mn) Loan Disbursements (₹ mn) On-book Loans Off-book Loans Corporate Retail Total 8,635 98,098 90,842 88,645 13,813 83,976 78,877 6,611 13,016 13,130 6,276 12,583 11,050 4,769 8,495 84,285 77,826 75,515 71,393 67,827 6,271 2,152 868 2,045 1,842 777 Q1
Slide 19: Q1FY22: Quarterly Performance Trend (2/2)
Q1FY22: Quarterly Performance Trend (2/2) NPA (%) PAT (₹ mn) GNPA NNPA 471 4.7% 4.5% 4.4% 316 242 2.9% 2.8% 3.8% 2.2% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 2.1% 2.1% 1.8% -368 -3,171 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Net worth (₹ mn) Return Ratios^ & Capital Adequacy (%) 39,512 39,695 40,046 37.7% 35.
Slide 20: Asset Quality
Asset Quality Gross NPA (₹ mn) Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 CV finance 2,445 578 805 2,900 2,613 SME finance 153 180 261 382 456 Housing finance 64 69 138 159 261 Corporate lending 1,546 1,546 1,076 - - Total 4,207 2,372 2,280 3,441 3,329 Net NPA (₹ mn) Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 CV fi
Slide 21: Discussion Summary
Discussion Summary Strategy Quarterly Results Business Update Shareholding Structure
Slide 22: Retailisation Strategy On track
Retailisation Strategy On track AUM: CL vs Retail (%) Disbursements: CL vs Retail (%) 98,098 90,842 88,645 83,976 78,877 868 2,152 6,611 8,635 6,276 72% 71% 73% 75% 77% 78% 89% 95% 98% 100% 28% 29% 27% 25% 23% 11% 22% 5% 2% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 F
Slide 23: Retail Business Volume impacted by Covid-19
Retail Business Volume impacted by Covid-19 Retail AUM (₹ mn) Retail Disbursements (₹ mn) 71,595 68,617 68,160 67,116 8,495 8,305 61,928 8,538 9,152 9,911 10,045 17,530 17,495 6,271 17,994 18,338 5,302 17,669 4,769 2,603 5,199 45,760 42,584 2,045 41,014 38,866 1,201 34,214 777 856 850 760 1,992 467
Slide 24: CV Finance (1/3)
CV Finance (1/3) CV Finance – Monthly Disbursement Trend (₹ mn) 2,310 2,043 1,918 1,596 1,374 1,396 1,238 944 574 280 284 23 2 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 CV Finance AUM ₹ 34,214 mn AUM of ICICI Bank tie-up ₹ 5,112 mn 23
Slide 25: CV Finance: Profit and Loss (2/3)
CV Finance : Profit and Loss (2/3) Particulars (₹ mn) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Revenue from operations 1,511 1,459 1,287 1,292 1,178 Interest expenses (707) (642) (526) (490) (404) Net interest income 804 817 761 802 775 People costs 187 182 184 243 181 Operating expenses 100 157 154
Slide 26: CV Finance: Key ratios (3/3)
CV Finance : Key ratios (3/3) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Branches & Employees Revenue from operations* 16.0% 15.7% 15.1% 15.1% 16.0% Net interest income* 8.5% 8.8% 8.9% 9.4% 10.5% 350 300 1,643 1,606 1,532 2,000 1,463 1,443 1,521 Operating expenses* 3.0% 3.6% 4.0% 4.8% 6.2% 250 1,500 Co
Slide 27: SME Finance (1/3)
SME Finance (1/3) SME Finance – Monthly Disbursement Trend (₹ mn) 744 685 563 485 414 418 374 200 162 126 103 69 4 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 SME Finance AUM : ₹ 17,669 mn Assigned Portfolio : ₹ 4,046 mn 26
Slide 28: SME Finance: Profit and Loss (2/3)
SME Finance: Profit and Loss (2/3) Particulars (₹ mn) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Revenue from operations 436 419 432 536 452 Interest expenses (245) (232) (242) (227) (219) Net interest income 191 187 190 309 233 People costs 39 42 47 45 38 Operating expenses 17 16 20 37 13 Pre-provisio
Slide 29: SME Finance: Key ratios (3/3)
SME Finance : Key ratios (3/3) Branches & Employees Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Revenue from operations* 12.8% 12.6% 12.6% 15.3% 13.0% 87 89 89 88 87 88 Net interest income* 5.6% 5.6% 5.5% 8.8% 6.7% Operating expenses* 1.6% 1.8% 1.9% 2.3% 1.4% 10 10 10 10 10 10 Cost / Income 29.3% 31.3%
Slide 30: Housing Finance (1/3)
Housing Finance (1/3) Housing Finance – Monthly Disbursement Trend (₹ mn) 489 362 376 336 278 303 270 193 206 186 190 64 90 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Housing Finance AUM : ₹ 10,045 mn Assigned Portfolio : ₹ 1,447 mn 29
Slide 31: Housing Finance: Profit and Loss (2/3)
Housing Finance: Profit and Loss (2/3) Particulars (₹ mn) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21* Q1 FY22 Revenue from operations 261 285 600 192 297 Interest expenses (136) (132) (138) (126) (139) Net interest income 125 153 462 66 158 People costs 53 51 53 24 49 Operating expenses 21 27 26 38 30 Pre-prov
Slide 32: Housing Finance: Key Ratios (3/3)
Housing Finance : Key Ratios (3/3) Branches & Employees Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Revenue from operations* 13.9% 14.7% 14.9% 9.8% 13.9% 303 319 Net interest income* 6.7% 7.9% 7.9% 3.4% 7.4% 294 271 275 274 Operating expenses* 4.0% 4.0% 4.0% 3.1% 3.7% 65 Cost / Income 59.5% 51.3% 50.0%
Slide 33: Restructuring Snapshot
Restructuring Snapshot No. of AUM under % of no. of % of Total no of Total AUM Q1FY22 Restructured Restructure Restructured Restructured Accounts accounts accounts AUM (INR mn) (INR mn) VF 63,729 2,514 34,214 1,790 3.9% 5.2% SME 2,608 90 17,669 1,101 3.5% 6.2% AHF 14,585 - 10,045 - - - Total Retail
Slide 34: Corporate Lending (1/3)
Corporate Lending (1/3) Corporate Lending AUM (₹ mn) AUM Breakup: RE vs. Non-RE 44,803 45,270 43,067 10% 10% 16% 19% 18% 36,267 31,646 28,687 29,287 24,760 22,872 19,096 18,710 90% 90% 84% 81% 82% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY2
Slide 35: Corporate Lending: Profit and Loss (2/3)
Corporate Lending: Profit and Loss (2/3) Particulars (₹ mn) Q1 FY 21 Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY22 Revenue from operations 1,000 991 834 577 587 Interest expenses (529) (488) (414) (350) (298) Net interest income 471 503 420 227 289 People costs 23 15 17 18 40 Operating expenses 4 59 9 32 20 Pr
Slide 36: Corporate Lending: Key ratios (3/3)
Corporate Lending : Key ratios (3/3) Q1 FY 21 Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY22 Revenue from operations* 13.6% 13.7% 13.5% 10.0% 12.3% Net interest income* 6.4% 7.0% 6.8% 3.9% 6.0% Operating expenses* 0.4% 1.0% 0.4% 0.9% 1.3% Cost / Income 5.8% 14.7% 6.2% 21.8% 20.9% Pre-provision operating profit
Slide 37: Entrepreneurial Leadership Team with Strong Sponsor Backing
Entrepreneurial Leadership Team with Strong Sponsor Backing Several years of experience and in-depth understanding of the specific industry and geographic regions Separate business & credit heads for each vertical Strong alignment through large ESOP program 20+ years of 30+ years of experi
Slide 38: Entrepreneurial Leadership Team with Strong Sponsor Backing
Entrepreneurial Leadership Team with Strong Sponsor Backing Several years of 24 years of Several years of experience with experience in experience with financial financial SME, Institutions 20+ years of Institutions commercial experience in banking, and Previously Siva S. Previously fina
Slide 39: Strong & Distinguished Board
Strong & Distinguished Board 14 committees composed of independent and non-independent directors and also employees1 Distinct and delineated responsibilities to ensure good corporate governance Strong capital sponsorship also providing access to best industry practices and international corpor
Slide 40: Discussion Summary
Discussion Summary Strategy Quarterly Results Business Update Shareholding Structure
Slide 41: Shareholding Pattern
Shareholding Pattern Shareholding# @ 30 June 2021 Brookfield # Public 52% 7% Indostar Capital Mauritius 41%^ # Excluding CCPS ^ includes ECP II & ECP III ESOP is 4.37% of diluted shares capital (excluding CCPS) Source – NSE, Company data 40
Slide 42: For Further Queries
For Further Queries Salil Bawa Head Investor Relations Contact No: +91 9987644008 Email – sbawa@indostarcapital.com Email - investor.relations@indostarcapital.com Media Contact Snigdha Nair Adfactors PR Email - snigdha.nair@adfactorspr.com; indostar@adfactorspr.com
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