Indostar Capital Finance Limited · NSE:INDOSTAR
Indostar Capital Finance — Q1 FY23 Earnings Presentation
29 slides from Indostar Capital Finance's earnings presentation, Aug 14, 2022
Slide 1: Exchange filing cover letter for investor presentation
ICFL/LS/0071/2022-23 15 August 2022 BSE Limited National Stock Exchange of India Limited Listing Department, 1st Floor, Exchange Plaza, C-1, Block G, P J Towers, Dalal Street, Fort, Bandra Kurla Complex, Mumbai - 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 541336 Symbol: INDOSTAR Sub.: Regulati
Slide 2: Q1FY23 Results Update
INDOSTAR INDOSTAR CAPITAL FINANCE LIMITED Q1FY23 Results Update 14 August 2022
Slide 3: Disclaimer
Disclaimer ..,; INDOSTAR 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 su
Slide 4: Executive Summary
Executive Summary ..,; INDOSTAR • Return to profitability. Robust collections, lower credit cost provisions in the quarter resulting in consolidated PAT of INR 60.9 crore • Raised incremental funding of INR 1,850 crore from 1 April 2022 and strengthened liquidity. Cash and cash equivalents @ 10 Augu
Slide 5: Agenda
Agenda ...,; INDOSTAR • Summary Financials • Collections and Asset Quality • Liquidity and Funding • Rebuilding the Organization: Leadership and Platform 3
Slide 6: Q1 FY23: Consolidated Profit & Loss Statement
Q1 FY23: Consolidated Profit & Loss Statement ...,; INDOSTAR Particulars (₹ crore) Q1FY23 Q4FY22 Q3 FY22 FY22 FY21 Revenue from operations 314 341 288 1,174 1,287 Interest expenses 147 138 124 536 706 Net revenue from operations 167 203 164 638 581 People costs 55 43 60 205 174 Operating expenses 48
Slide 7: Consolidated Balance Sheet
Consolidated Balance Sheet ...,; INDOSTAR Particulars (₹ crore) Jun-22 Mar-22 Dec-21 Jun-21 Equity 2,995 2,929 3,678 3,629 Borrowings 5,869 6,223 5,678 5,557 Other liabilities 456 509 355 396 Total liabilities 9,320 9,661 9,712 9,582 Loan assets 6,654 7,707 7,870 6,783 Treasury assets 1,445 1,037 1,
Slide 8: Q1 FY23: Business Segment Performance
Q1 FY23: Business Segment Performance ...,; INDOSTAR CV SME Housing Corporate Particulars (₹ crore) Consolidated ^ Finance Finance Finance Lending Revenue from operations 147 59 56 44 314 Interest expenses 62 24 16 23 147 Net interest income 85 34 40 21 167 People costs 30 4 9 1 55 Operating expense
Slide 9: Q4 FY22: Business Segment Performance
Q4 FY22: Business Segment Performance ...,; INDOSTAR CV SME Housing Corporate Particulars (₹ crore) Consolidated ^ Finance Finance Finance Lending Revenue from operations 150 44 54 87 341 Interest expenses 65 25 5 26 138 Net interest income 84 19 48 61 203 People costs 31 6 11 1 43 Operating expense
Slide 10: CV Finance: Profit & Loss
CV Finance : Profit & Loss ...,; INDOSTAR Particulars (₹ crore) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Revenue from operations 147 II 150 142 112 118 I I I I Interest _ ___ expenses __________I I I 62 II1- - -65 47 44 40 -------------- Net _ _interest ____ income ________I 1 I 85 I1- I 84 95 68 ---
Slide 11: SME Finance: Profit & Loss
SME Finance : Profit & Loss ...,; INDOSTAR Particulars (₹ crore) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Revenue from operations I I 59 II 44 44 46 45 I I Interest expenses 1 24 •- I 25 22 22 22 ~ - - - - - - - - - - - - -,I I ---------------- Net L _interest ____ income _ _ _ _ _ _ _ _ I•- I 34 19
Slide 12: Housing Finance: Profit & Loss
Housing Finance : Profit & Loss ...,; INDOSTAR Particulars (₹ crore) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 * Q1 FY22 Revenue from operations 56 II 54 33 29 30 Interest expenses 16 I 5 15 15 14 I 1- - - - - - - - - - - - - - - - - - - - Net interest income 40 1I 48 18 - - - - -, - - - - - - - - - - - - - -
Slide 13: Corporate Lending: Profit & Loss
Corporate Lending : Profit & Loss ...,; INDOSTAR - - - - - - - - - Particulars (₹ crore) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Revenue from operations 44 II 87 49 79 59 I I I I Interest expenses 23 26 23 27 30 Net interest income 21 61 26 52 29 People costs 1 1 1 (1) 4 Operating expenses 0 0 2 4 2
Slide 14: Agenda
Agenda ...,; INDOSTAR • Summary Financials • Collections and Asset Quality • Liquidity and Funding • Rebuilding the Organization: Leadership and Platform 12
Slide 15: Strong Collection Efficiency
Strong Collection Efficiency ...,; INDOSTAR Particulars (₹ crore) EMI Billing EMI collected Overdue / Total Collection Prepayments Collection efficiency collections % Jan 22 240 176 123 299 125% Feb 22 228 165 115 280 123% Mar 22 . 247 . 209 226 . 435 176% --------------------1---------------1------
Slide 16: ECL reduction driven by ARC sale, collections and settlements
ECL reduction driven by ARC sale, collections and settlements ...,; INDOSTAR INR crores ECL (Stage wise) (Mar'22) CV finance SME finance Housing Corporate Total finance lending Stage 1 56 9 9 23 96 Stage 2 212 27 3 114 356 1040 Stage 3 617 49 8 9 684 Total 886 85 20 145 1,136 ECL (Stage wise) (Jun'2
Slide 17: Asset Quality Overview (Q4 FY22 and Q1FY23) - Consolidated
Asset Quality Overview (Q4 FY22 and Q1FY23) - Consolidated ...,; INDOSTAR • Significant reduction in NNPA (Net Stage 3) ratios between Q4 FY 22 and Q1 FY23 • Continue to maintain prudent provisioning Prudent Provisioning 6.4% 57.8% 13.6% 8.2% 3.6% 56.8% Q4FY22 Q1FY23 Q4FY22 Q1FY23 Q4FY22 Q1FY23 I GN
Slide 18: Asset Quality Overview (Q4 FY22 and Q1FY23) - Standalone
Asset Quality Overview (Q4 FY22 and Q1FY23) - Standalone ...,; INDOSTAR • Significant reduction in NNPA (Net Stage 3) ratios between Q4 FY 22 and Q1 FY23 • Continue to maintain prudent provisioning • Capital Adequacy Ratio (CAR) June 22: 29.0; March 22: 25.8% Prudent Provisioning 7.3% 15.5% 58.6% 9.
Slide 19: Agenda
Agenda ...,; INDOSTAR • Summary Financials • Collections and Asset Quality • Liquidity and Funding • Rebuilding the Organization: Leadership and Platform 17
Slide 20: ALM reflects Strong Liquidity
ALM reflects Strong Liquidity ...,; INDOSTAR Particulars (₹ crore) Jul-22 Aug-22 Sep-22 Q3 FY23 Q4 FY23 Opening cash & equivalents* 1,509 1,643 1,525 1,156 901 Loan repayment inflows [Principal] 80 80 91 302 353 Fresh borrowings 380 - - - - Total inflow 1,969 1,723 1,616 1,458 1,254 Liability repaym
Slide 21: Credit rating remains strong
Credit rating remains strong ...,; INDOSTAR Funding Mix - June 2022 Strong Credit Ratings Borrowing Type Rating Firm Ratings NCD 13% CRISIL AA (–) Term Loans Equity 34% CARE A+ CRISIL AA (–) Banks 36% Redeemable NCDs CARE A+ CP 6% CRISIL / CARE / CPs A1 (+) Securitisation 11% ICRA • CRISIL re-affirm
Slide 22: Funding raised since 1st April 2022 – standalone
Funding raised since 1st April 2022 – standalone ...,; INDOSTAR Source Amount (INR crore) PSU Bank - Term Loan 400 Commercial Paper 300 Securitization of SME loan pool 100 Private Bank - Term Loan 770 Private Bank - WCDL 50 Cash from loan sale to ARC (net amount) 130 Total 1,750 • Cash and cash equi
Slide 23: Agenda
Agenda ...,; INDOSTAR • Summary Financials • Collections and Asset Quality • Liquidity and Funding • Rebuilding the Organization: Leadership and Platform 21
Slide 24: Significant management changes over last 6 months
Significant management changes over last 6 months to drive growth and value creation ...,; INDOSTAR Director Internal Head CEO CRO Finance Audit Head Credit CV Deep Jaggi (Jan 2022) j Pankaj Thapar (July 2022) j Karthikeyan Srinivasan (May 2022) j Kashinath Palekar (May 2022) K V Bharadwaj (Aug 2022
Slide 25: Retailisation strategy on track
Retailisation strategy on track ...,; INDOSTAR AUM: CL vs Retail (%) Disbursements: CL vs Retail (%) ----- ----- 8,433 8,572 9,236 9,658 8,247 628 1,129 1,480 1,710 344 78% 81% 82% 84% 85% 100% 98% 98% 99% 96% 22% 19% 18% 16% 15% 2% 2% 1% 4% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3
Slide 26: Retail Business Volume
Retail Business Volume ...,; INDOSTAR • Disbursement had grown 2x in 12 months from Q4 FY21 to Q4 FY22, before slowing in Q1 FY23 • Retail AUM (net of provisions) de-growth arrested; expect book to grow from hereon Retail AUM (₹ crore) Retail Disbursements (₹ crore) 8,090 7,594 6,957 1,694 6,922 1,4
Slide 27: HFC: Growing book with stable asset quality
HFC: Growing book with stable asset quality ...,; INDOSTAR HFC now run as a fully independent company; Scaled up to AUM of ~INR 1,467 crores at a CAGR of ~37% in last 3 years. Infrastructure of ~109 branches with 577 employees which gives long runway for growth AUM has grown at 37% CAGR over last 3
Slide 28: Significant footprint creating runway for growth
Significant footprint creating runway for growth ...,; INDOSTAR 413 branches across 22 states * Some branches have multiple operating segments lllllU(:IUJ. PMDEJH --········__J I 404 413 ~ I 343 HAR:v..lH l0 · · · · - - · Cii 278 l0 I 240 0-········· -·1 218 374 I 370 i 318 265 l!IEWDDM 3, : I 227 o
Slide 29: Investor relations contacts
Salil Bawa Shiv Muttoo Head Investor Relations Adfactors IR Contact No: +91 9987644008 Contact No: +91 98335 57572 Email - sbawa@indostarcapital.com Email - shiv.muttoo@adfactorspr.com Email - investor.relations@indostarcapital.com Email - indostar@adfactorspr.com For Further Queries
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