Housing & Urban Development Corp. Ltd. · NSE:HUDCO
Housing & Urban Development — Investor Presentation (July 2021)
28 slides from Housing & Urban Development's investor presentation, Jul 12, 2021
Slide 1: Corporate Presentation July 2021
Corporate Presentation JULY 2021 A warm welcome to the Investors
Slide 2: Disclaimer
Disclaimer This presentation is issued by Housing and Urban Development Corporation Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or for
Slide 3: HUDCO | At A Glance
HUDCO | At A Glance Company Overview HUDCO has more than 50 years experience in providing loans for housing and urban infrastructure projects in India Plays a key role in various Government schemes to develop the Indian housing and urban infrastructure sectors. As on March 31, 2021, 96.58% of to
Slide 4: HUDCO | Key Strengths
HUDCO | Key Strengths Financial Strength and Key Role in Various 1 Government Schemes Profitability Since 5 Inception Highest Credit Ratings, Experienced Senior 2 Access To Diversified and Management Team 4 Lower-cost Funding Pan-India Presence and Strong Relationships with State Governments 3 4
Slide 5: Key Role in Government Schemes
Key Role in Government Schemes HUDCO has a strong relationship with State Governments, reflected in higher participation in government housing and urban infrastructure programmes such as DAY-NULM, JNNURM, Smart Cities Mission and PMAY HFA Sanctions to State Governments and Agencies as a Percentage o
Slide 6: Highest Credit Ratings, Access to Diversified and Low-Cost Funding
Highest Credit Ratings, Access to Diversified and Low-Cost Funding Highest credit rating and strong relationships with government enables access to funds for a long-term duration, lower cost of borrowing and from a diversified lender base Rating of AAA for Long Term Debt Incremental cost of borrowin
Slide 7: Pan-India Presence and Strong Relationships with State Governments
Pan-India Presence and Strong Relationships with State Governments Pan-India presence has helped develop strong relationships with state governments and their agencies HUDCO - Presence across India HUDCO – Office Locations across India HUDCO’s registered office and corporate office is located at N
Slide 8: Experienced Board of Directors
Experienced Board of Directors Name Bio Presently serving as Additional Secretary, Ministry of Housing and Urban Affairs, Government of India is an Indian Administrative Service (IAS) officer of 1991 batch Uttar Pradesh cadre B.Tech and M.Tech in Mechanical Engineering from IIT Delhi Rich ex
Slide 9: Operational Details
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Slide 10: Overview | Financing Products
Overview | Financing Products Total Outstanding Loan Portfolio INR. 756 bn1 Housing Finance INR 461 bn (60.80%) Borrower Type Private Urban Infra Finance INR 297 bn (39.20%) sector Individuals, entities, 0.1% 3.3% Average Loan Size INR 1,254 mn Average Residual Tenor 9.42 years NIM 3.26% Gross NPA a
Slide 11: Overview | Financing Products
Overview | Financing Products Housing Finance* Urban Infrastructure Finance* Loan to Value (LTV) Up to Loan to Value (LTV) Up to State governments and public sector agencies 90% of project cost State governments and public sector agencies 90% of project cost Private sector 70% Private sector (Power
Slide 12: Details of Sanctions & Disbursements
Details of Sanctions & Disbursements Sanctions by Business Category (in INR mn) FY18 FY19 FY20 FY21 Particulars % of Loan % of Loan % of Loan % of Loan Amount Amount Amount Amount Portfolio Portfolio Portfolio Portfolio Housing Finance 155,830 40.32% 271,230 78.73% 37,903 19.01% 9,159 9.95% Urban In
Slide 13: Loan Portfolio | Classification
Loan Portfolio | Classification Loan Portfolio by Business Category (in INR mn) FY18 FY19 FY20 FY21 Particulars % of Loan % of Loan % of Loan % of Loan Amount Amount Amount Amount Portfolio Portfolio Portfolio Portfolio Housing Finance 154,584 31.21% 410,765 56.02% 439,729 57.43% 458,272 60.47% Urba
Slide 14: Borrowings | Overview
Borrowings | Overview • IRRPL (formerly Fitch Ratings India), ICRA and CARE have assigned a rating of ‘AAA’ to HUDCO’s long-term bonds, long- term bank facilities and fixed deposit programme. HUDCO’s international ratings by Moody’s and Fitch are equivalent to Sovereign Ratings of the Country Borr
Slide 15: Borrowings | Details
Borrowings | Details Details of Borrowings (In INR mn) FY18 FY19 FY20 FY21 Particulars Amount % of Total Amount % of Total Amount % of Total Amount % of Total Tax-free bonds 173,885 46.35% 173,885 29.03% 173,885 28.28% 173,885 28.49% Taxable bonds 88,283 23.53% 321,167 53.62% 354,687 57.68% 392,294
Slide 16: HUDCO | Asset Quality
HUDCO | Asset Quality Gross and Net Non Performing Assets (“NPAs”) to Total Loan Portfolio 7.29% 4.48% 1.96% 3.82% 4.03% 0.50% 0.19% 0.50% FY18 FY19 FY20 FY21 Gross NPAs to Total Loan Portfolio Net NPAs to Total Loan Portfolio Provision Coverage Ratio1 95.18% 89.22% 87.92% 74.53% FY18 FY19 FY20 FY21
Slide 17: Details of NPA
Details of NPA NPA by Business Category (in INR mn) FY18 FY19 FY20 FY21 Particulars Amount % Amount % Amount % Amount % Housing Finance 2,914 8% 2,870 9% 1,780 6% 5,386 18% Urban Infrastructure 33,186 92% 29,996 91% 27,497 94% 25,154 82% Finance Total NPA Gross 36,100 100% 32,866 100% 29,277 100% 30
Slide 18: Strategy
Strategy Rapid urbanization, Demand-Supply Gap & initiatives by GoI to revitalize urban sector would enable HUDCO to focus on planning its operations for next decade for both housing and urban infrastructure sector. The National Infrastructure Pipeline captures the infrastructure vision of the c
Slide 19: Strategy
Strategy Increasing Geographical 3 Increase geographical footprint in smaller cities to cater to increasing financing requirements in these cities Reach to Smaller Cities Government Housing and Continue to participate in the implementation of government housing and urban infrastructure 4 Urban I
Slide 20: Summary | Standalone P&L
Summary | Standalone P&L Summary Standalone P&L In INR mn Particulars FY18 FY19 FY20 FY21 Interest on loans(less: penal interest waved off) 39,994 54,353 74,559 71,671 (+) Interest on Investments / Deposits 337 303 267 55 (-) Total Interest Expense (incl. expenditure directly attributable to borrowi
Slide 21: Summary | Standalone P&L
Summary | Standalone P&L Summary Standalone P&L In INR mn Particulars FY18 FY19 FY20 FY21 Total Interest Income (Net of Interest expense) 17,711 24,187 26,322 24,058 Non-Interest income 2,010 1,256 851 1,051 Total Income 19,721 25,444 27,173 25,109 % growth 29.0% 6.8% -7.6% Employee benefit Expense
Slide 22: Summary | Standalone Balance Sheet
Summary | Standalone Balance Sheet Summary Standalone Balance Sheet (in INR mn) Particulars FY18 FY19 FY20 FY21 Share capital 20,019 20,019 20,019 20,019 Reserve and Surplus 79,411 89,539 103,416 111,872 Net worth 99,430 109,558 123,435 131,891 Borrowings (including deposits) 362,766 598,480 614,366
Slide 23: HUDCO | Financial Parameters
HUDCO | Financial Parameters Yield on Loans , Cost of Loans and Interest Spread1 Yield on Loan Cost of Funds 10.34% 10.15% 9.97% 9.78% 2.54% 3.14% 1.99% 2.71% 7.80% 7.79% 7.26% 7.01% FY18 FY19 FY20 FY21 Net interest margin2 4.45% 4.52% 3.65% 3.26% FY18 FY19 FY20 FY21 The Company has adopted Indian A
Slide 24: Balance Sheet Highlights
Balance Sheet Highlights Dividend and Dividend Pay-out Ratio1 Cost to Income Ratio3 Dividend 1,325 1,991 6,515 4,354 71.28% (In INR 69.38% mn) 38.13% 66.73% 66.68% 27.58% 13.12% 16.87% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Return on Equity2 Return on Average Assets (After Tax)4 2.30% 2.29% 13.84%
Slide 25: Details of Interest Earning Assets and Interest Bearing Liabilities
Details of Interest Earning Assets and Interest Bearing Liabilities Interest-earning Assets1 Interest-bearing Liabilities1 Average Balance Average Balance (in INR Mn) (in INR Mn) 733,293 993 734,695 956 38 371 611,117 612,073 Loans Investments Fixed deposits Others Total interest- Borrowings Deposit
Slide 26: Annexure
Annexure “Ss <=Sshi 6 www.hudco.org f @HUDCO | Y @hudcolimited | jm @company/hudco-limited | (J @youtube.com/c/HUDCOLTD
Slide 27: Classification of Loans & Expected Credit Loss (ECL) as per IND AS
Classification of Loans & Expected Credit Loss (ECL) as per IND AS Mar-21 Mar-20 Exposure at Default (amount) (% of total) (amount) (% of total) (INR mn, except perentages) Stage 1 658,149 86.84% 696,937 92.84% Stage 2 69,177* 9.13% 36,741 3.33% Stage 3 30,540 4.03% 29,277 3.82% Total 757,866 100% 7
Slide 28: Thank You
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