Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — Q4 FY2019-20 Earnings Presentation
56 slides from Sammaan Capital's earnings presentation, Jul 3, 2020
Slide 1: Indiabulls Housing Finance
Indiabulls HOUSING FINANCE
Slide 2: Contents
Contents Pg. No. 1. Business Update 03 2. Net Profit Reconciliation: Impact of One-off Items 04 3. Large Conservative Provisioning Buffer 05 4. Funds Raised in Last 3 Months 06 5. Performance Metrics 07 6. Granular Asset Liability Maturity Management 08 7. Asset Quality & Provision Levels 09 8. Reta
Slide 3: Business Update
Business Update Key Financial Highlights: FY19-20 vs FY18-19 as per Indian Accounting Standards [IndAS] FY 19-20 FY 18-19 Loan book 69,676 91,530 Total Revenues 13,223 17,027 PAT 2,200 4,091 Normalized PAT* 2,904 4,091 Key Financial Highlights: Q4 FY19-20 vs Q3 FY19-20 as per Indian Accounting Stand
Slide 4: Net Profit Reconciliation: Impact of One-off Items
Net Profit Reconciliation: Impact of One-off Items Particulars Q4 FY20 Q3 FY20 FY20 FY19 Reported PAT 137 552 2,200 4,091 Add: COVID-19 Related Provisions A 700 700 1% of the Loan Book Add: Fair Valuation profit on OakNorth Bank B Holding 1,802 1,802 [Routed through OCI instead of P&L as required by
Slide 5: Large Conservative Provisioning Buffer
Large Conservative Provisioning Buffer • ₹ 1,802 Cr of profit on fair valuation of holding in OakNorth Bank has been routed through Other Comprehensive Income [OCI], instead of the P&L as required by IndAS • Of this, ₹ 1,798 Cr has been debited to OCI to create extra provisions • Additionally, ₹ 700
Slide 6: Funds Raised in Last 3 Months
Funds Raised in Last 3 Months In the last 3 months, IBH has raised the following monies Amount Raised Bonds of over 3 years’ tenure ₹ 1,230 Cr Bonds of 1 to 3 years’ tenure ₹ 925 Cr Term Loans of over 5 years’ tenure ₹ 1,275 Cr Loans of 1 to 3 years’ tenure ₹ 4,194 Cr Developer Loan Sell Downs ₹ 1,8
Slide 7: Performance Metrics
Performance Metrics Particulars FY 19-20 Loan Book ₹ 69,676 Cr Net Debt to Equity 4.0x CRAR 27.1% Yield on Loans 11.6% Cost of Borrowings 8.8% Book Spread 2.8% Cost to Income Ratio 16.2% Total Provisions ₹ 3,741 Crs Total Provisions as a % of Loan Book 5.4% Gross NPA 1.8% Total Extra Provisions [aft
Slide 8: Granular Asset Liability Maturity Management
Granular Asset Liability Maturity Management 91,558 91,558 81,403 79,269 75,921 72,448 65,523 60,815 53,750 50,252 24,485 14,417 15,879 13,484 13,595 13,766 13,799 8,619 - 1,065 1,594 2,806 1d-14d 15d-1m 1m-2m 2m-3m 3m-6m 6m-1yr 1yr-3Yr 3Yr-5Yr 5Yr-7yr 7Yr-10yr 10Yr+ Assets Liabilities The ALM above
Slide 9: Asset Quality & Provision Levels
Asset Quality & Provision Levels Q4 FY20 Q3FY20 • Adopted a conservative & prudent Gross Stage 3 Loans [GNPA] 1,712 1,988 approach to provisioning, given GNPA Ratio [% of loans in Stage 3] 1.84% 1.94% macroeconomic uncertainties due ECL Provision Stage 3 418 561 to COVID-19 Net Stage 3 Loans [NNPA]
Slide 10: Retail Business Model [60% HL, 40% LAP]
Retail Business Model [60% HL, 40% LAP] Proportion of Origination 40% 40% 20% 100% On-Balance Sheet Retention 8% 4% 20% 32% Co-origination Sell Down Total On-Balance Sheet Onward Lending [20% on IBH Books] [10% on IBH Books] RoA HL LAP HL LAP HL LAP HL LAP Yield 9.75% 11.75% 9.60% 12.33% 9.60% 12.33
Slide 11: Developer Loan Business Model
Developer Loan Business Model on FPI Balance Sheet 80% on IBH Balance Sheet 20% Yield 18.0% Cost of Funds for IBH 8.8% Spread for IBH 9.2% Processing Fees [1.0% of Disbursal] [Entirely to IBH] 1.7% Annual Service Fees [0.25% of book with FPI – loaded on book with IBH] 1.1% Operating + Sourcing Expen
Slide 12: Appendix
Indiabulls HOUSING FINANCE Appendix
Slide 13: Financial and Operational Highlights
Financial and Operational Highlights 13
Slide 14: Balance Sheet Assets
Balance Sheet Assets 19% 13% Loan Book Cash & Cash Equivalents Other Assets 68% 14
Slide 15: Asset Composition
Asset Composition Q4 FY 19-20 36% 64% Housing Loans Non-Housing Loans 15
Slide 16: Liabilities Profile
Indiabulls HOUSING FINANCE Liabilities Profile
Slide 17: Liabilities
Liabilities 15% 11% 74% Shareholders' Funds Borrowings Other Liabilities 17
Slide 18: Diversified Liability Profile, Low Leverage
Diversified Liability Profile, Low Leverage Mar 20 Mar 19 Bank Loans 33,570 46,100 Non-Convertible Debentures 37,305 48,739 Commercial Papers - 5,330 ECB 5,146 4,819 Total Borrowing 76,021 1,04,988 Amount in ₹ Cr • No reliance on funding through Commercial Papers • Amongst its lenders, the company n
Slide 19: Funding Mix
Funding Mix 2% 4% 5% 10% 22% 23% 34% 34% 34% 12% 4% 42% 38% 36% Mar 18 Mar 19 Mar 20 Non-Convertible Debentures Commercial Papers Bank Loans Sell Down ECB ECB: External Commercial Borrowing 19
Slide 20: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Total Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Cash & Cash Equivalents 13,410 13,410 11,611 7,260 8,618 10,686 12,046 6,480 4,661 Customer Repayments 69,676 1,006 1,462 4,462 4,144 4,049 3,919 4,018 3,944 No
Slide 21: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Cash & Cash Equivalents 4,408 2,149 2,750 2,128 3,498 5,233 3,185 4,545 Customer Repayments 3,770 3,517 3,026 3,023 2,863 2,600 2,614 2,331 Non Current Assets - - - -
Slide 22: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Cash & Cash Equivalents 6,171 7,769 9,200 10,800 11,633 12,181 13,346 14,420 Customer Repayments 2,202 2,222 2,176 1,690 1,591 1,489 1,367 1,200 Non Current Assets -
Slide 23: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY27 Q2FY27 Q3FY27 Q4FY27 Q1FY28 Q2FY28 Q3FY28 Q4FY28 Cash & Cash Equivalents 15,428 14,606 13,233 13,498 13,746 13,728 11,605 11,684 Customer Repayments 322 302 283 265 249 233 219 204 Non Current Assets - - - - - - - -
Slide 24: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q1FY29 Q2FY29 Q3FY29 Q4FY29 Q1FY30 Q2FY30 Q3FY30 Q4FY30 10+ Years Cash & Cash Equivalents 7,142 7,227 6,348 5,508 4,957 5,093 5,220 5,352 5,482 Customer Repayments 191 179 167 155 143 133 132 130 1,684 Non Current Assets -
Slide 25: Regulatory and Market Developments
Regulatory and Market Developments 25
Slide 26: Residential Market: GFC vs COVID-19
Residential Market: GFC vs COVID-19 Global Financial Crisis [GFC] COVID-19 Valuation of residential properties Overheated Realistic Nature of Market Sellers’ market Buyers’ market Home loan rates High Lower High due to sound financial position Ability of banks to lend Low and presence of security as
Slide 27: Regulatory Updates
Regulatory Updates • Emergency Credit Line Guarantee Scheme of ₹ 3 lakh Cr announced for giving government guaranteed collateral free loans to MSMEs • Long Term Repo Operations [LTRO] of ₹ 1 lakh Cr and Targeted Long Term Repo Operations [TLTRO] of ₹ 50,000 Cr announced by RBI to infuse liquidity in
Slide 28: Product Profiles
Indiabulls HOUSING FINANCE Product Profiles 28
Slide 29: Home Loan Profile: Focus on Mid-Income Affordable Housing
Home Loan Profile: Focus on Mid-Income Affordable Housing Average Loan Size ₹ 24 Lakhs Maximum Loan to Value 80% Average Loan to Value 73% [at origination] Average Loan Term 15 years Average Customer Age 38 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing • PMAY
Slide 30: Smart City Home Loan: Technology-led Cost-effective
Smart City Home Loan: Technology-led Cost-effective Delivery through eHomeLoans Platform Minimum Loan Size ₹ 10 Lakhs Average Loan Size ₹ 15 Lakhs Maximum Loan Size ₹ 40 Lakhs Maximum Loan to Value 80% [at origination] Maximum Loan Term 20 years Average Customer Age 39 years Primary Security Mortgag
Slide 31: Loan Against Property Product Profile
Loan Against Property Product Profile Average Loan Size ₹ 73 Lakhs Maximum Loan to Value 65% Average Loan to Value 49% [at origination] Average Loan Term 7 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing Average Age of Business 7 years Basis of Credit Appraisal
Slide 32: Smart City LAP: Technology-led Cost-effective
Smart City LAP: Technology-led Cost-effective Delivery through eHomeLoans Platform Minimum Loan Size ₹ 10 Lakhs Average Loan Size ₹ 25 Lakhs Maximum Loan Size ₹ 50 Lakhs Maximum Loan to Value 55% [at origination] Average Loan to Value 40% Maximum Loan Term 10 years Average Loan Term 5 years Average
Slide 33: Static Credit Performance Analysis of LAP and HL Pools
Static Credit Performance Analysis of LAP and HL Pools 33
Slide 34: Retail Loan Book of Highest Quality
Retail Loan Book of Highest Quality Portfolio performance of all sold down pools of ₹ 62,885 Cr Initial Pool Details of Initial POS Average Sold Down Pool Loan Pool Number of Disbursement Ticket Size Months on 180+ dpd Principal Principal Amortisation 90+ dpd % Type Pools [₹ Cr] [at disbursement] Bo
Slide 35: Home Loans Pool Performance Factsheet: Experian Credit Bureau
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sr. No Investor Sold Down Disbursement Sold Down MPS Pool Principal Amortisa- 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 1 Bank 4 29-Oct-13
Slide 36: Home Loans Pool Performance Factsheet: Experian Credit Bureau
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sr. No Investor Sold Down Disbursement Sold Down MPS Pool Principal Amortisa- 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 27 Bank 22 23-Mar-
Slide 37: Home Loans Pool Performance Factsheet: Experian Credit Bureau
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sr. No Investor Sold Down Disbursement Sold Down MPS Pool Principal Amortisa- 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 53 Bank 15 4-May-1
Slide 38: Home Loans Pool Performance Factsheet: Experian Credit Bureau
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sr. No Investor Sold Down Disbursement Sold Down MPS Pool Principal Amortisa- 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 79 Bank 19 31-Dec-
Slide 39: LAP Pool Performance Factsheet: Experian Credit Bureau
LAP Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sr. No Investor Sold Down Disbursement Sold Down MPS Pool Principal Amortisa- 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 1 Bank 3 31-Dec-13 224.4
Slide 40: LAP Pool Performance Factsheet: Experian Credit Bureau
LAP Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sr. No Investor Sold Down Disbursement Sold Down MPS Pool Principal Amortisa- 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 29 Bank 14 26-Sep-17 706.
Slide 41: LAP Pool Performance Factsheet: Experian Credit Bureau
LAP Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sr. No Investor Sold Down Disbursement Sold Down MPS Pool Principal Amortisa- 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 57 Bank 19 31-Dec-18 305.
Slide 42: Home Loans and LAP Pool Performance Factsheet
Home Loans and LAP Pool Performance Factsheet PTC and PCG Pools HL Pools Initial Pool Details of Initial POS Sold Down Sold Down Disbursement Pool Principal Amortis- 90+ 180+ Sr No Investor Principal MPS CCR MCR QCR Rating from Date [₹ Cr] [₹ Cr] ation# dpd % dpd % [₹ Cr] 1 Bank 2 30-Dec-13 109.6 99
Slide 43: Corporate Social Responsibility
Corporate Social Responsibility 43
Slide 44: Indiabulls Foundation: Corporate Social Responsibility
Indiabulls Foundation: Corporate Social Responsibility Mahatma Awards For Excellence in Corporate Social Responsibility- 2019 Health JanSwasthya Kalyan Vahika Transforming Mokhada, Shahapur Transforming Talukas - Free primary healthcare facility provided at & Trimbakeshwar doorstep for the underpriv
Slide 45: Board of Directors, Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding
Board of Directors, Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding 45
Slide 46: 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 • Mr. S.S. Mundra : Former Deputy Governor, The Reserve Bank of India • Mr. A Siddha
Slide 47: Credit Ratings and Auditors
Credit Ratings and Auditors Rating Agency Long Term Credit Rating CRISIL [an S&P Global Company] AA ICRA [a Moody’s Investors Service Company] AA CARE Ratings AA Brickwork Ratings AA+ Auditors Statutory Auditor S R Batliboi & Co. [Indian Member firm of Ernst & Young] Internal Auditor Grant Thornton
Slide 48: Productivity Ratios
Productivity Ratios FY FY FY FY FY FY FY FY FY FY 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 No. of 4,512 4,243 4,072 4,099 4,840 5,453 6,388 8,111 8,676 5,407 Employees Profit per 0.17 0.24 0.31 0.38 0.39 0.43 0.46 0.47 0.47 0.41 employee [₹ Cr] Asset per 3.71 5.85 8.09 10.84 11.82 14.02 16.
Slide 49: Key Financial Metrics
Key Financial Metrics FY FY FY FY FY FY FY FY FY FY 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Pre Tax RoAA 5.5% 4.9% 4.9% 4.8% 4.9% 4.9% 4.6% 4.3% 4.2% 2.2% [%] Post Tax RoAA 4.1% 3.7% 3.8% 3.8% 3.7% 3.7% 3.6% 3.3% 3.0% 1.9% [%] RoE [%] 17% 22% 26% 27% 29% 26% 26% 30% 24% 18% Capital 23.87%
Slide 50: Valuations and Returns
Valuations and Returns Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Market Price per Share 155 207 272 286 558 674 998 1,194 744 228* [₹] Dividend per Share [₹] 10 13 20 29 35 36 36 42 40 21 Dividend Yield [%] 6.5% 6.3% 7.4% 10.2% 6.3% 5.3% 3.6% 3.5% 5.4% 9.2% Market Capital
Slide 51: Shareholding Pattern
Shareholding Pattern 2.0% 22.9% 25.2% 11.6% 38.4% Founder Foreign Institutional Shareholding MFs/Banks/IFI Public Indiabulls - Employee Welfare Trust Mr. Sameer Gehlaut on 31st March, 2020 acquired 24,00,000 equity shares in the Company from the open market, which were credited to his de-mat account
Slide 52: Detailed Financials
Indiabulls HOUSING FINANCE Detailed Financials 52
Slide 53: Consolidated Balance Sheet
Consolidated Balance Sheet The company had cash, cash equivalents and investments in liquid debt instruments of ₹ 13,410 Cr as at 31st Mar, 2020. The company receives income from its cash, cash equivalents and investments in liquid debt instruments through the quarter, most of which appears in ‘Othe
Slide 54: Consolidated Income Statement
Consolidated Income Statement The company had cash, cash equivalents and investments in liquid debt instruments of ₹ 13,410 Cr as at 31st Mar, 2020. The company receives income from its cash, cash equivalents and investments in liquid debt instruments through the quarter, most of which appears in ‘O
Slide 55: Safe Harbour Statement
Safe Harbour Statement This document contains certain forward-looking statements based on current expectations of Indiabulls Housing Finance Ltd. management (“IBH”). These forward looking statements and any other projections contained herein are predictions and involve known and unknown risks, uncer
Slide 56: Thank you
Indiabulls HOUSING FINANCE Thank you
Indiabulls Housing Finance — Q4 FY2019-20 Earnings Presentation on 6ix