India Shelter Finance Corp. Ltd. · NSE:INDIASHLTR
India Shelter Finance — Q1 FY2025 Earnings Presentation
43 slides from India Shelter Finance's earnings presentation
Slide 1: Investor Presentation Q1FY25
Investor Presentation Q1FY25 India Shelter Finance Corporation Limited
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (“Presentation”), which have been prepared by India Shelter Finance Corporation Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 3: Q1FY25 Snapshot
Q1FY25 Snapshot AUM Employees Spread Gross Stage 3 ROA Rs. Crore 6,509 37% YoY 3,515 6.1% 1.1% 5.6% Disbursement States Secured Book Net Stage 3 ROE Rs. Crore 715 23% YoY 15 100% 0.9% 14.3% PAT Branches Average Ticket Size2 PCR3 CRAR | Leverage Rs. Crore Rs. Lakhs 84 77% YoY 236 +13 Branches QoQ 10
Slide 4: Key Highlights & Executive Summary – Q1FY25
Key Highlights & Executive Summary – Q1FY25 • Delivered AUM growth of 37% YoY to Rs. 6,509 Cr Business • Portfolio LTV maintained at 52%, ATS continues to be at Rs. 10 Lacs Metrics & AUM ROA Expansion • The company continues to deepen its presence by adding 13 new branches in Q1FY25 • Geographic pre
Slide 5: About the Company
About the Company India Shelter Finance Corporation Limited 5
Slide 6: Who we are
Who we are What we do Deep Vintage Focus on India Shelter provides affordable home Founded in 2010, India Shelter has a 14-year loans and loan against property in Tier 2 and 3 geographies in India. vintage that results in deep understanding of the segment Underserved Customer Base Focus Segment Corp
Slide 7: Growth Journey
Growth Journey AUM (Rs. Crores) 39% CAGR AUM crosses Rs. 6,000 Crs (FY19-FY24) CARE: IND RA: Upgraded Upgraded to AA- (Stable) to AA- (Stable) AUM crosses Listed on Rs. 6,500 crs BSE, NSE 6,509 PAT crosses Rs. 100 crs CARE: 6,084 Upgraded to A+ (Positive) ICRA: Acquires Upgraded majority to A- Prese
Slide 8: Key Success Factors
Key Success Factors Curated In-house Processes Enabling Robust Asset Quality across Cycles 4 5 Extensive, Diversified, Phygital 3 Professional Management Guided by Distribution having Pan India presence Board Comprising of Industry Veterans Technology Driven Company with Scalable Model 2 6 Strong Fo
Slide 9: Experienced Board with Industry Veterans
Experienced Board with Industry Veterans Chairman Independent Directors Parveen Gupta Rachna Dikshit Savita Mahajan Thomson Thomas Ex-MD SBI Ex-Regional Ex-CIO HDFC Life Ex-Dean ISB Director RBI Nominee Directors Management Sudhin Choksey Ex-MD Gruh Finance 35+ yrs of BFSI experience Nominee Directo
Slide 10: Professionally Managed Company
Professionally Managed Company Experienced Management Team with Strong Alignment of Interest with 9% ESOP Pool Rupinder Singh Ashish Gupta Sharad Pareek Nilay MD & CEO CFO CRO CHRO 20+ yrs of experience 18+ yrs of experience 22+ yrs of experience 22+ yrs of experience Ex-Cholamandalam Ex-Satin Micro
Slide 11: Shareholding Pattern
Shareholding Pattern Key Institutional Investors Investor % Holding 3.5% 1.6% 1.5% WestBridge WestBridge Capital^ 46.8% Nexus Venture Partners^ 21.3% Nexus 5.2% Quant Mutual Fund* 2.7% DII Axis Mutual Fund* 2.6% Madison^ 2.6% 20.1% FII 46.8% Nippon Mutual Fund* 2.4% Publics & others SBI Life 1.9% Fr
Slide 12: Business Update
Business Update India Shelter Finance Corporation Limited 12
Slide 13: Industry Dynamics
Industry Dynamics Housing Credit Income Profile Avg. Ticket Size Value of Units LTV Aggregate Loan Segment Shortage Penetration (Rs. Lakh) (Rs. mn) (Rs. tn) (%) Demand (Rs. tn) (mn units) (%) EWS Up to 3 45 0.75 34 40% 40% 5 LIG 3 to 6 50 2.0 100 50% 80% 40 MIG & Above 6 and above 5 8.0 40 65% 85% 2
Slide 14: Robust Growth With Profitability
Robust Growth With Profitability Disbursement (Rs. Crores) AUM (Rs. Crores) 37% PAT (Rs. Crores) 77% 23% YoY YoY YoY 7% 7% -4% QoQ QoQ QoQ 6,509 84 747 78 715 6,084 582 4,759 47 8 63 52 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Co-lending 14
Slide 15: Consistent Asset Quality
Consistent Asset Quality Stage 3/ GNPA (%) DPD above 90 DPD upto 90 Stage 3/ NNPA (%) 1.0% 1.2% 1.1% 1.0% 1.0% 0.03% 0.05% 0.01% 0.02% 0.02% 0.9% 0.9% 0.8% 0.7% 0.7% 1.0% 1.0% 1.2% 1.0% 1.1% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 30+ DPD (%) Collection Efficiency (%) 3
Slide 16: Maintaining Spreads
Maintaining Spreads Yield COF Spread 14.7% 14.9% 14.9% 8.7% 8.8% 8.8% • Cost of Funds (COF) maintained at 8.8% as of June’24 • Marginal Cost of Funds for Q1FY25 is at 8.8% 6.0% 6.1% 6.1% June'23 Mar'24 June'24 16 Yield on AUM | Yield and COF is position as at the end of relevant period and is exclud
Slide 17: Extensive Pan-India Distribution Network
Extensive Pan-India Distribution Network Geographically Diversified with Contiguous Scope for Operating Leverage Expansion (Vintage-wise AUM/ branch, June-24) No of AUM AUM /Branch AUM /Branch Branch Vintage Branches (Rs. Crs) Q1FY25 FY21 Up to 1 year 41 222 5 1 1 to 3 years 72 1,248 17 14 More than
Slide 18: Customer & Portfolio Demographics
Customer & Portfolio Demographics >20 to 25L >25L ≤5L Salaried Loan against Tier - 1 7% 5% 9% Property 28% 10% 41% June 2024 Tier - 3 >15 to 20L 50% AUM Profile City 13% ATS1 Mix Home Mix Rs. 10 Loans Tier Lacs 59% Tier - 2 >5 to 10L Self Employed 40% 40% >10 to 15L 72% 26% >20 to 25L >25L ≤5L Loan
Slide 19: Tech, Credit & Risk
Tech, Credit & Risk India Shelter Finance Corporation Limited 19
Slide 20: Robust Underwriting and Risk Management
Robust Underwriting and Risk Management In-house BRE for analyzing 100+ fields for customer and collateral evaluation Customer Assessment Collateral Evaluation Controls in Place ✓ Background and Business Collateral Valuation Risk Management Vintage Process ✓ Neighbor & Reference Check ✓ Identificati
Slide 21: End to End Digital Process for Home Loans
End to End Digital Process for Home Loans Minimizing our carbon footprint through digitization IndiaShelter IndiaShelter IndiaShelter IndiaShelter IndiaShelter iSales iCredit iTech iCollect iServe Customer Credit Collateral Collections Customer Acquisition Underwriting Evaluation Management Service
Slide 22: Technology Driven Company with Scalable Operating Model
Technology Driven Company with Scalable Operating Model Strong Tech Architecture across Processes Multiple Digital Assets Digital Loan Approval Cloud Based Platform and Paperless Approach Extensive database with 100+ data points on customer and collateral Customer 360 view Data Capture profiles to e
Slide 23: Digital Adoption Progress
Digital Adoption Progress % of Customers registered % of Service Requests on the app raised on the app 72% 65% 56% 65% 99% E-Nach Mandates 23% 1% Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 % of Digital Collections % of Account Aggregator (AA) penetration 96% 33% 39% 99% E-Signing 93% 92% 7% Q1FY24 Q4
Slide 24: Separate Hierarchy Of Key Functions
Separate Hierarchy Of Key Functions Sales, Underwriting & Collections Independent of each function Customer Ops & Cust. Collection & Credit Legal Technical Acquisition Service Recovery Loan Officers Credit Manager Branch Service Tech. Manager Collection Manager Branch Manager Branch Manager Area Sal
Slide 25: Financials
Financials India Shelter Finance Corporation Limited 25
Slide 26: Strong Liability Franchise
Strong Liability Franchise Diversified Funding Profile and Strong Lending Relationships Lender Base 7 years Borrowing Mix (Q1FY25), % Avg. Tenure of Borrowings 32 Lender Relationships PTC NCD Key Lenders ECB 1% 5% 1% FI & Others MF, NBFC, NHB 18% Term Loans by Private Banks Banks & FI 53% DA 22% Pub
Slide 27: Strong Balance Sheet
Strong Balance Sheet Consistent Rating Upgrades Strong ALM Surplus Outflow Inflow Cumulative ALM Profile, June’24 2024 AA- (Stable)* Rs. Crs 278 <3 months 336 614 2023 A+ (Positive) 487 <6 months 340 827 2022 A+ (Stable) 901 <1 Year 340 1,241 2019 A (Stable) 2,317 <3 Year 210 2,527 2018 A- (Positive
Slide 28: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (Rs. Cr.) As of June’24 Total Available Cash & Cash Equivalents1 480 Liquidity of Un-availed Sanctions from Banks/FI 713 INR 1,193 Cr Total Liquidity Position 1,193 Particulars (Rs. Cr.) Q2FY25 Q3FY25 Q4FY25 Q1FY26 Opening Liquidity 1,193 1,254 1,291 1,324
Slide 29: Profit & Loss Statement - Quarterly
Profit & Loss Statement - Quarterly Particulars (Rs. Cr.) Q1FY25 Q1FY24 YoY Q4FY24 QoQ Interest Income on loans 200.6 141.7 42% 190.3 5% Net Gain on Direct Assignments 24.9 18.8 33% 17.0 47% Other Income 35.1 27.5 28% 37.2 -6% Total Income 260.7 188.0 39% 244.4 7% Finance Cost 76.3 67.9 12% 74.2 3%
Slide 30: Profit & Loss Statement – Annual
Profit & Loss Statement – Annual Particulars (Rs. Cr.) FY24 FY23 FY22 FY21 FY20 Interest Income on loans 660.6 476.7 353.2 257.7 202.6 Net Gain on Direct Assignments 79.1 43.9 49.7 29.2 - Other Income 121.7 85.7 56.9 35.9 27.3 Total Income 861.4 606.2 459.8 322.8 229.9 Finance Cost 287.0 208.7 147.4
Slide 31: Balance Sheet
Balance Sheet Particulars (Rs. Cr.) June-24 June-23 Mar-24 Sources of Funds Share Capital 53.6 43.8 53.5 Reserves & Surplus 2,333.3 1,243.4 2,245.1 Borrowings 3,690.3 3,319.6 3,415.1 Other liabilities & provisions 89.4 88.1 80.4 Total 6,166.5 4,694.9 5,794.2 Application of Funds Loan Assets 5,405.3
Slide 32: ECL Provisions Summary
ECL Provisions Summary Particulars June-24 Mar-24 June-23 Gross Stage 3 63.1 50.1 40.9 % Portfolio in Stage 3 1.1% 1.0% 1.0% ECL Provision Stage 3 15.8 12.5 10.9 Net Stage 3 47.3 37.7 30.0 % Portfolio in Stage 3 0.7% 0.6% 0.6% Provision Coverage Ratio (PCR) – Stage 3 25.1% 25.0% 26.7% Gross Stage 2
Slide 33: ROE Tree & Key Ratios
ROE Tree & Key Ratios Particulars (Rs. Crs) Q1FY25 Q4FY24 Q1FY24 FY24 FY23 Total Revenue to Average Total Assets 17.4% 16.9% 16.7% 17.1% 16.1% Finance cost to Average Total Assets 5.1% 5.1% 6.0% 5.7% 5.6% Net Income to Average Total Assets 12.3% 11.7% 10.7% 11.4% 10.6% Operating Expenses to Average
Slide 34: Financial Snapshot – 10 years
Financial Snapshot – 10 years Particulars FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Operational Branches 31 33 47 61 64 81 86 115 130 183 223 States 4 5 7 8 8 12 12 15 15 15 15 Active Live Accounts 5,304 8,552 12,823 15,730 20,117 24,354 27,602 33,607 43,328 58,552 80,791 Employees 255
Slide 35: Key Growth Strategies
Key Growth Strategies Grow and Diversify Diversify Borrowings Leverage Technology Enhance Brand Distribution and Optimize for Scalability and Equity and Foster Network Borrowing Costs Productivity Sustainability Deepening branch Enhance credit rating Enhance lead sourcing Increase concentration pene
Slide 36: ESG
ESG India Shelter Finance Corporation Limited 36
Slide 37: Focus on Social Capital
Focus on Social Capital Social SDGs achieved Customers SDGs achieved India Shelter Nakshatra: Serving the underserved & unserved Our Educational Initiative segment leading to financial inclusion: Akshaya Patra Foundation (to ensure a nutritious meal for the underprivileged students) 72% 90% Samartha
Slide 38: Focus on Human Capital
Focus on Human Capital Employees Employee Development & Well Being We prioritize the development & well-being of our employees, ensuring a healthy and balanced work environment. Here are some initiatives we have implemented: • Prarambh - A Leadership Journey • India Shelter Child Scholarship Program
Slide 39: Strong Governance Structure
Strong Governance Structure Strong corporate governance framework in place for effective risk management Board of Directors Board Level Committees Risk Nomination & Top-tier Corporate Management Committee Audit Committee IT Strategy Committee Remuneration Committee CSR committee Governance: Manageme
Slide 40: Awards & Accolades
Awards & Accolades Awards won in FY24 BEST CUSTOMER EXPERIENCE JAN GRIHA CERTIFICATION INDIA'S BEST SOLUTION OF THE YEAR TOP 50 INDIA'S BEST GREAT PLACE TO WORK WORKPLACES IN NBFC BY ON AT THE BW WORKPLACES IN BFSI 2024 CERTIFIED GPTW INDIA FINTECH AWARDS 2024 GREEN HOME INITIATIVES 40
Slide 41: Glossary
Glossary Terms Explanation AUM represents the aggregate of future principal outstanding and overdue principal outstanding, if any, for all loan assets under management which includes (i) loan assets held by us as of the last day of the relevant period/year (ii) loan assets which have been transferre
Slide 42: Glossary
Glossary Abbreviation Expansion Abbreviation Expansion ALM Asset liability management HL Home loan ATS Average Ticket Size IPO Initial Public Offer AUM Assets under management LAP Loan against property BPS Basis Points LCR Liquidity Coverage Ratio BRE Business rule engine LIG Low-income group CAGR C
Slide 43: Thank You
Thank You For further information, please contact: Rahul Rajagopalan Head – Investor Relations investorrelations@indiashelter.in
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