Indostar Capital Finance Limited · NSE:INDOSTAR
Indostar Capital Finance — Q3 FY2025 Earnings Presentation
45 slides from Indostar Capital Finance's earnings presentation, December 2024
Slide 1: Investor Presentation – December 2024
INDOSTAR CAPITAL FINANCE Investor Presentation – December 2024
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by IndoStar Capital Finance Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 3: INDOSTAR 2.0
INDOSTAR 2.0 Focus on Higher Yield Diversifying Liability Asset Quality Cost Optimization products Franchise o Recalibrated with high yield, low ticket o Technology enabled collections o IndoStar’s long term facilities' rating o Leveraging technology across loan secured products minimising cash hand
Slide 4: Continued Focus Areas
Continued Focus Areas Continuously evolving Expanding the use of Ensuring a robust Digitalization product offerings data and systems balance sheet Expanding distribution Expanding customer Automating controls and Being agile and footprint lifetime value alerts to minimize risk future-ready 4
Slide 5: Key Performance Highlights – Q3FY25
Key Performance Highlights – Q3FY25 Consolidated AUM Disbursements ₹ 10,625 crs ₹ 1,572 crs Q3FY24: ₹ 8,037 crs Q3FY24 : ₹ 1,345 crs PAT Branches ₹ 27.7 crs 570 Branches Q3FY24: ₹ 16.9 crs Q3FY24: 493 Human Capital 5,524 Q3FY24 : 3,697 5
Slide 6: Focused on retail, high-yield, granular, secured assets
Focused on retail, high-yield, granular, secured assets Consolidated Break-up of Asset Under Management (₹ crs)* Retailisation Strategy Playing Out 10,150 8,998 9,658 7,813 8,763 9,565 10,112 10,625 26% 388 371 3 19 (4%) (4%) (0%) (0%) 174 173 409 (2%) 382 (2%) 1,200 485 451 (4%) (4%) 1,543 (5%) (6%
Slide 7: Focused on retail, high-yield, granular, secured assets
Focused on retail, high-yield, granular, secured assets Consolidated Disbursements: Retail (₹ crs) Disbursements: Retail (₹ crs) +20.3% 5,190 1,726 1,714 4,893 3 4,885 1,618 20 1,562 937 302 261 16 563 211 753 281 579 1,298 1,221 224 221 945 840 2,356 190 347 1,937 183 1,449 4,253 4,121 1,424 1,407
Slide 8: National Footprint Creating Runway for Growth
National Footprint Creating Runway for Growth Consolidated No States 570 Branches Across 23 States 1 HIMACHAL PRADESH – 2 2 PUNJAB – 10 2 541 566 570 3 UTTARAKHAND – 9 493 515 10 27 122 128 129 4 HARYANA – 12 9 124 5 NEW DELHI – 2 119 6 UTTAR PRADESH- 35 9 391 419 438 441 7 RAJASTHAN – 37 31 6 33 2
Slide 9: IndoStar Capital Finance Limited
IndoStar Capital Finance Limited
Slide 10: Key Performance Highlights – Q3FY25
Key Performance Highlights – Q3FY25 ICF Standalone AUM Disbursements NIMs ₹ 7,877 crs ₹ 1,291 crs 5.4% Q3FY24: ₹ 5,991 crs Q3FY24 : ₹ 1,121 crs Q3FY24: 5.1% Gross Stage 3 Net Stage 3 CRAR 4.9% 2.7% 28.5% CRAR Q3FY24: 6.5% Q3FY24: 2.8% Q3FY24: 30.4% Net Total Income PAT Branches ₹ 180.5 crs ₹ 11.4 cr
Slide 11: Expanding the used CV portfolio & building Micro LAP
Expanding the used CV portfolio & building Micro LAP ICF Standalone Break-up of Asset Under Management (₹ crs) Retail Disbursements (₹ crs) 8,002 8,252 6,190 6,493 7,170 7,550 7,877 371 3 19 (5%) (0%) (0%) 4,307 4,253 174 173 388 (2%) 409 (2%) 382 (6%) 1,543 1,200 485 451 (5%) (5%) 564 1,932 (19%) (
Slide 12: Movement of Non-performing Assets
Movement of Non-performing Assets ICF Standalone NPA trends (%) Collection Efficiency (Inc Overdue)(%) 100.9% 96.3% 94.7% 95.2% 92.5% 6.50% 4.97% 4.97% 4.97% 4.92% 2.80% 2.71% 2.36% 2.50% 2.09% Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Gross Stage 3 Net Stage 3
Slide 13: Movement in staging of loan assets
Movement in staging of loan assets ICF Standalone Particulars (₹ crs) Q3FY25 Q2FY25 Q1FY25 Q4FY24 Q3FY24 Gross Stage 1 & 2 7,032 6,976 6,695 5,985 5,358 ECL Stage 1 & 2 98 99 125 126 133 Net Stage 1 & 2 6,934 6,876 6,570 5,859 5,225 ECL Provision % 1.4% 1.4% 1.9% 2.1% 2.5% Particulars (₹ crs) Q3FY25
Slide 14: Diversified Borrowing Profile
Diversified Borrowing Profile ICF Standalone Diversified Funding Mix (Dec 2024) Raised ₹ 995 Cr during Q3FY25 NCDs Term loan Securitisation CPs/WCDL 5,328 6,049 6,171 7,189 6,944 2,361 13% 7% 12% 15% 9% 266 19% 24% 21% 19% 23% 1,609 815 21% 16% 15% 27% 22% 1,147 800 995 100 53% 52% 100 730 675 46% 4
Slide 15: Credit Rating remains Strong
Credit Rating remains Strong ICF Standalone Net-worth and Capital Adequacy Strong Credit Ratings 30% 29% 28% 26% 29% Borrowing Type Rating Firm Ratings CRISIL AA (–) Term Loans 3,408 3,102 3,165 3,186 CARE AA (–) 3,078 CRISIL AA (–) Redeemable NCDs CARE AA (–) Net-worth (₹ crs) CPs CRISIL/CARE A1 (+
Slide 16: CV Finance
—! INDOSTAR “Your Path To A Better Life” CV Finance
Slide 17: Industry Overview
Industry Overview Commercial Vehicle Industry Commercial Vehicles are a proxy for economic growth Provides direct / indirect employment to more than 50 Mn people GDP Growth, Robust Tax collections, Transparent / focused policies are Over 70% of the goods/ people movement is by Road Transport spurrin
Slide 18: Commercial Vehicle Finance
Commercial Vehicle Finance Average Loan to Value Disbursements Yield AUM of Average Ticket Size of Used Vehicle Disbursement Presence across Ratio is 72.1% in Q3FY25 ~18.5% ₹ 7,303 crs ₹ 6.6 Lakhs of 99% in Q3FY25 23 States vis-à-vis 73.0% in Gross Stage 3 of 4.7% & Disbursements in Q3FY24 Net Stage
Slide 19: CV Finance : Key Operational Parameters
CV Finance : Key Operational Parameters AUM (₹ crs) Loan to Value (%) 7,303 6,964 6,323 5,594 4,850 73.0% 73.8% 73.4% 73.2% 72.1% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Average Ticket Size (₹ lakhs) AUM Mix (Geography –Wise) (%) 8.2 8.2 15% 7.7 28% North 6.9 South 6.6
Slide 20: CV Finance : Key Operational Parameters
CV Finance : Key Operational Parameters Disbursements (₹ crs) Disbursements Yield (%) 1,424 1,407 1,449 1,265 1,074 18.2% 18.4% 18.5% 18.5% 17.9% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Disbursement Mix (Product) (%) Disbursement Mix (Geography) (%) Disbursement Mix (Ne
Slide 21: Niwas Housing Finance Private Limited
Niwas Housing Finance Private Limited
Slide 22: Indian Affordable Housing Finance Market expected to show Significant Growth
Indian Affordable Housing Finance Market expected to show Significant Growth Standalone Ticket Size (Rs) Players in Indian Mortgage Market Increasing Penetration in LIG & EWS Segments to Drive Growth 69% 41% Average LTS Affordable Housing Market MIG & Comprises of loans with ticket 17.1 35% sizes le
Slide 23: Future Ready to Seize Affordable Housing Market Opportunity
Future Ready to Seize Affordable Housing Market Opportunity Standalone Management Team Geographical Focus Ecosystem Play Robust Underwriting Micro LAP Play • Seasoned management • Geographical focus on • Remote access to • Centralized underwriting • Presence in tier 3 and 4 team supported by South &
Slide 24: Key Performance Highlights – Q3FY25
Key Performance Highlights – Q3FY25 Standalone AUM Disbursements NIMs Gross Stage 3 ₹ 2,748 crs ₹ 281 crs 6.1% 1.6% Q3FY24: ₹ 2047crs Q3FY24 : ₹ 224crs Q3FY24 :8.1% Q3FY24 : 1.2% Net Total PAT Net Stage 3 CRAR Income 1.3% 52.6% ₹ 60.6 crs ₹ 16.3 crs Q3FY24 : 0.9% Q3FY24 : 66.6% Q3FY24 : ₹ 41.0 crs Q
Slide 25: Focusing on Growing Housing Finance Book
Focusing on Growing Housing Finance Book Standalone Housing Finance – AUM Housing Finance – Disbursements (₹ crs) (₹ crs) 2,748 301 2,562 281 2,395 261 2,270 2,047 224 211 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1 FY25 Q2 FY25 Q3FY25 25
Slide 26: Housing Finance : Key Operational Parameters
Housing Finance : Key Operational Parameters Standalone Average Ticket Size (₹ lakhs) Live Accounts 34,798 32,508 9.0 9.0 9.0 9.0 9.0 30,498 28,923 26,216 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Loan to Value (%) Geographical Distribution (Value –Wise) (%) 3% 3% Tamil N
Slide 27: Housing Finance : Key Financial Parameters
Housing Finance : Key Financial Parameters Standalone AUM (₹ crs) Gross Stage 3 & Net Stage 3 (%) 1.9% 1.8% +29% 1.6% 2,748 1.3% 1.4% Gross Stage 3 CRAR 2,395 2,562 1.3% 2,270 1.4% 1.1% Net Stage 3 1.3% 52.6% 1,623 1.1% 1.1% 1.1% 1,406 0.9% Q3 FY25 0.8% 996 FY 21 FY 22 FY23 FY24 Q1FY25 Q2FY25 Q3FY25
Slide 28: Catering to Underpenetrated Segments across Product Types
Catering to Underpenetrated Segments across Product Types Standalone Characteristics Salaried Self Employed Textile loom workers Retail workers Small traders Kirana shop owners FMCG workers School teachers Tea & snack vendors Vegetable vendors Profession Small time Manual labourers Helpers Micro sca
Slide 29: Process Excellence: Credit & Underwriting
Process Excellence: Credit & Underwriting Standalone CREDIT & UNDERWRITING Assessment of Total Income (Individual & Evaluation of Profile and Property Risk Evolving Underwriting Processes Household) • Collecting KYCs -Aadhar, PAN, Credit history checks with • Building self learnings in the credit pr
Slide 30: Process Excellence: Collections & Monitoring
Process Excellence: Collections & Monitoring Standalone Collection Process Pre Bounce / Delinquency • Use of Bounce prediction tool which provides with the pool of customers with high probability where focused efforts are put in to collect advance EMIs to avoid bounce • Sales team is responsible for
Slide 31: Analytics driven Risk Management to control Delinquency
Analytics driven Risk Management to control Delinquency Standalone Key Risk Management Aspects Monitored ✓ Robust dashboards developed in the system to enable real time monitoring of mentioned parameters Roll Rate Analysis Lagged Bounce Rate Analysis ✓ Dashboards are sent to branch managers to enabl
Slide 32: Financial Performance
—! INDOSTAR “Your Path To A Better Life” Financial Performance
Slide 33: ICF Standalone - Income Statement
ICF Standalone - Income Statement ICF Standalone Particulars (₹ in crs) Q3FY25 Q2FY25 Q-o-Q Q3FY24 Y-o-Y 9MFY25 9MFY24 Y-o-Y Revenue from operations 373.2 344.9 238.1 1,022.3 713.5 Interest expenses 193.0 187.8 145.3 547.5 419.2 Net Interest Income 180.2 157.2 14.6% 92.8 94.1% 474.7 294.3 61.3% Othe
Slide 34: ICF Standalone - Balance Sheet
ICF Standalone - Balance Sheet ICF Standalone Equity & Liabilities (₹ in crs) Dec’24 Sep’24 Dec’23 Assets (₹ in crs) Dec’24 Sep’24 Dec’23 Financial Liabilities Financial Assets Trade payables 0.0 0.3 0.0 Cash and cash equivalents 108.1 254.5 386.3 Bank balance other than cash & cash equivalent 341.0
Slide 35: HFC - Income Statement
HFC - Income Statement HFC Standalone Particulars (₹ in crs) Q3FY25 Q2FY25 Q-o-Q Q3FY24 Y-o-Y 9MFY25 9MFY24 Y-o-Y Revenue from operations 107.2 94.3 68.1 286.8 206.4 Interest expenses 47.1 40.4 27.1 123.8 74.2 Net Interest Income 60.1 53.9 11.6% 41.0 46.7% 163.0 132.2 23.3% Other Income 0.2 0.3 0.0
Slide 36: HFC - Balance Sheet
HFC - Balance Sheet HFC Standalone Equity & Liabilities (₹ in crs) Dec’24 Sep’24 Dec’23 Assets (₹ in crs) Dec’24 Sep’24 Dec’23 Financial Liabilities Financial Assets Trade payables 0.2 0.2 0.3 Cash and cash equivalents 156.5 369.2 206.0 Debt Securities 71.8 75.4 27.6 Bank balance other than cash & c
Slide 37: Consolidated Income Statement incl. Discontinued Operations
Consolidated Income Statement incl. Discontinued Operations Particulars (₹ in crs) Q3FY25 Q2FY25 Q-o-Q Q3FY24 Y-o-Y 9MFY25 9MFY24 Y-o-Y Revenue from operations 373.2 345.0 238.2 1,022.4 712.2 Interest expenses 193.0 187.8 145.3 547.5 417.8 Net Interest Income from continuing operations 180.3 157.2 1
Slide 38: Consolidated Balance Sheet incl. Discontinued Operations
Consolidated Balance Sheet incl. Discontinued Operations Consolidated Equity & Liabilities (₹ in crs) Dec’24 Mar’24 Assets (₹ in crs) Dec’24 Mar’24 Financial Liabilities Financial Assets Trade payables 0.0 1.4 Cash and cash equivalents 112.9 613.9 Debt Securities 3,768.2 3,341.0 Bank balance other t
Slide 39: Ownership Structure and Management Team
Ownership Structure and Management Team
Slide 40: Large Global Private Equity Parentage
Large Global Private Equity Parentage Shareholding Pattern (As on Dec 2024) Shareholders (holding more than 1%) % 22.12% Promoters 73.59 2.43% BCP V Multiple Holdings Pte Ltd (Brookfield) 56.20 1.86% Everstone Group 17.39 73.59% Domestic Institutional Investors 1.86 ICICI Prudential Life Insurance C
Slide 41: Experienced Management Team - IndoStar
Experienced Management Team - IndoStar Randhir Singh Karthikeyan Srinivasan Whole-Time Director and Executive Vice Chairman - ICF Chief Executive Officer and Whole-Time Director - ICF o He is a seasoned financial leader with 29 years of experience in o He has over 30 years of experience in the areas
Slide 42: Experienced Management Team
Experienced Management Team Shreejit Menon Chief Executive Officer - HFC o He is a Commerce Graduate and has a Master’s degree in Management Studies from University of Mumbai o He has several years of experience with financial institutions like Religare Housing Development Finance Corporation Limite
Slide 43: Esteemed Board of Directors
Esteemed Board of Directors Bobby Parikh Chairman and Non-Executive Independent Director o He has nearly three decades of experience in financial services industry/reorganizations o His area of focus is providing tax and regulatory advice in relation to transactions and other forms of business reorg
Slide 44: Esteemed Board of Directors
Esteemed Board of Directors Dhanpal Jhaveri Non–Executive Director o He has over two decades of experience in investments, strategy, M&A and investment banking. Currently, he is a Managing Partner at the Everstone Group o He holds a degree in Bachelor of Commerce from the University of Mumbai and an
Slide 45: Thank You
COMPANY “Your Path To A Better Life” Indostar Capital Finance Limited CIN: L65100MH2009PLC268160 Email: investor.relations@indostarcapital.com Website: www.indostarcapital.com INVESTOR RELATIONS ADVISORS Orient Capital (a division of Link Group) Thank You Mr. Nikunj Jain Mr. Viral Sanklecha +91 9769
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