Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — Q2 FY2020-21 Earnings Presentation
56 slides from Sammaan Capital's earnings presentation, Nov 11, 2020
Slide 1: Unaudited Financial Results – Q2 FY2020-21
Unaudited Financial Results – Q2 FY2020-21 November 11, 2020
Slide 2: Contents
Contents Pg. No. 1. Business Update 03 2. Funds Raised in FY21 04 3. Performance Metrics 05 4. Granular Asset Liability Maturity Management 06 5. Asset Quality & Provision Levels 07 6. Credit Risk: Stable Portfolio Quality & Improving Collection Efficiency 08 7. Scalable Asset-Light Business Model 0
Slide 3: Business Update
Business Update Key Financial Highlights: Q2 FY20-21 Q1 FY20-21 Q4 FY19-20 Loan Book 72,791 73,129 73,065 CRAR 31.4%* 27.9% 27.1% Tier 1 24.4%* 21.1% 20.3% Net Gearing 3.6x 3.9x 4.0x Net Interest Income 750 731 828 PBT 413 354 94 PAT 323 273 137 *Including regulatory equity capital raised through QI
Slide 4: Funds Raised in FY21
Funds Raised in FY21 Since April 2020, IBH has raised the following monies: Amount Bonds of over 3 years’ tenure ₹ 1,230 Cr Bonds of 1 to 3 years’ tenure ₹ 1,550 Cr Term Loans of over 5 years’ tenure ₹ 1,700 Cr Loans of 1 to 3 years’ tenure ₹ 8,008 Cr Developer Loan Sell Downs ₹ 3,200 Cr Retail Loan
Slide 5: Performance Metrics
Performance Metrics Particulars Q2 FY20-21 Loan Book ₹ 72,791 Cr Net Debt to Equity 3.6x CRAR 31.4%* Tier I 24.4%* Yield on Loans 11.1% Cost of Borrowings 8.6% Book Spread 2.5% Cost to Income Ratio [H1 FY21] 13.1% Gross NPA 1.98% RoA [FY20] 1.9% RoE [FY20] 17.6% *Including regulatory equity capital
Slide 6: Granular Asset Liability Maturity Management
Granular Asset Liability Maturity Management 93,727 93,727 88,029 84,865 76,726 77,442 69,172 60,289 61,665 51,097 32,849 25,009 19,779 21,076 17,444 18,313 16,558 6,126 134 363 3,173 60 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 is
Slide 7: Asset Quality & Provision Levels
Asset Quality & Provision Levels Q2 FY21 Q1 FY21 Gross Stage 3 1,801 2,042 % Portfolio in Stage 3 1.98% 2.20% ECL Provision Stage 3 473 525 Net Stage 3 1,328 1,517 Gross Stage 1&2 89,140 90,728 % Portfolio in Stage 1&2 98.02% 97.80% As per IND AS Amounts in ₹ Cr • Without the Supreme Court’s dispens
Slide 8: Credit Risk: Stable Portfolio Quality & Improving Collection Efficiency
Credit Risk: Stable Portfolio Quality & Improving Collection Efficiency • Collections have been improving month-on-month since June 2020 and for Oct 2020 stood at 96.1% [including for morat portfolio] Oct-20 Sep-20 Feb-20 Sep-19 Collection Efficiency [%] 96.1% 95.2% 98.9% 99.2% • Portfolio in morato
Slide 9: Scalable Asset-Light Business Model
Scalable Asset-Light Business Model • As IBH pursues an asset-light model, balance sheet growth will be moderate at 4% CAGR, while AUM will grow at 24%+ CAGR • For retail loans: Besides disbursals on balance sheet, IBH will partner with banks and other eligible FIs for co-lending in line with RBI
Slide 10: eHome Loans: Indiabulls Integrated Home Loan Technology Platform
: Indiabulls Integrated Home Loan Technology Platform Integrated Home Loan Technology Platform Social Media Access to Developers Fee Customers Analytics Integration Source Data and DSAs Generation One app for all Automated Product Real-time access to GST, Shorter working Cross-sell: needs underwriti
Slide 11: For Tier III & IV Locations: Phygital Channel Strategy
For Tier III & IV Locations: Phygital Channel Strategy • Phygital strategy entails co-mingling of ‘physical’ and ‘digital’ models wherein the Company offers fully digital, online loan fulfillment for specific target customer segments which are well versed with technology, while at the same time cont
Slide 12: Scalable Retail Business Model
Scalable Retail Business Model [60% HL, 40% LAP] Proportion of Origination 40% 40% 20% 100% On-Balance Sheet Retention 8% 4% 20% 32% Co-Lending 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 9.10% 11.50% 8.10% 11.10% 8.50%
Slide 13: Developer Loan Business Model: Co-Lending with Credit Funds
Developer Loan Business Model: Co-Lending with Credit Funds On Fund’s Balance Sheet 80% On IBH Balance Sheet 20% Yield 15.0% • Will be done through participation Cost of Funds for IBH in an AIF structure 8.1% Spread for IBH • Pari passu risk sharing 6.9% Processing Fees • Loan processing fee to IBH
Slide 14: Effective Oversight: Independent Chairman, Strong Board, Audit Committee
Effective Oversight: Independent Chairman, Strong Board, Audit Committee Board led by ex-RBI Deputy Governor and majority independent directors • Independent, Non-Executive director Mr. S. S. Mundra, Ex-Deputy Governor of the Reserve Bank of India, is now the chairman of the board Audit Committee ch
Slide 15: OakNorth Bank Investment: Annualised IRR of 35% in Five Years
OakNorth Bank Investment: Annualised IRR of 35% in Five Years Amount in ₹ Cr Annualised Period Event Amount IRR Nov 2015 Acquired 39.76% stake in OakNorth Bank 663 Dec 2017 Sold one-third stake to GIC – sovereign wealth fund of Singapore 768 Sep to Nov 2020 Sold stake to multiple funds 1,895 As on D
Slide 16: Appendix
Indiabulls HOUSING FINANCE Appendix
Slide 17: Financial and Operational Highlights
Financial and Operational Highlights 17
Slide 18: Balance Sheet Assets
Balance Sheet Assets 15% 13% Loan Book Cash & Cash Equivalents Other Assets 73% 18
Slide 19: Asset Composition
Asset Composition Q2 FY 20-21 34% 66% Housing Loans Non-Housing Loans • IBH is already in compliance with the requirements for HFCs under the recently released RBI’s Regulatory Framework for HFCs 19
Slide 20: Liabilities Profile
Indiabulls HOUSING FINANCE Liabilities Profile
Slide 21: Liabilities
Liabilities 17% 10% 73% Shareholders' Funds Borrowings Other Liabilities 21
Slide 22: Funding Mix
Funding Mix 4% 4% 4% 11% 22% 23% 31% 35% 33% 16% 0.4% 38% 38% 39% Sep 18 Sep 19 Sep 20 Non-Convertible Debentures Commercial Papers Bank Loans Sell Down ECB ECB: External Commercial Borrowing 22
Slide 23: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Total Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Cash & Investments and Undrawn Available Sanctions 16,864 16,864 17,903 18,883 20,048 16,291 13,977 13,590 10,658 Customer Repayments 72,791 4,212 3,933 3,845 3
Slide 24: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Cash & Investments and Undrawn Available Sanctions 11,416 10,484 11,587 11,551 9,193 10,330 11,520 12,680 Customer Repayments 3,134 3,131 2,957 2,583 2,697 2,320 2,18
Slide 25: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Cash & Investments and Undrawn Available Sanctions 13,592 14,727 15,165 14,793 15,062 16,176 17,490 16,739 Customer Repayments 2,160 1,764 1,602 1,554 1,717 1,813 687
Slide 26: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q3FY27 Q4FY27 Q1FY28 Q2FY28 Q3FY28 Q4FY28 Q1FY29 Q2FY29 Cash & Investments and Undrawn Available Sanctions 15,598 15,819 17,709 17,753 15,693 15,772 11,332 11,469 Customer Repayments 332 1,997 393 376 342 327 312 299 Non C
Slide 27: Micro ALM Details [Quarter-wise for next 10 years]
Micro ALM Details [Quarter-wise for next 10 years] Amount in ₹ Cr Particulars Q3FY29 Q4FY29 Q1FY30 Q2FY30 Q3FY30 Q4FY30 Q1FY31 Q2FY31 10+ Years Cash & Investments and Undrawn Available Sanctions 10,644 9,858 9,389 9,630 9,866 10,096 10,318 10,481 10,588 Customer Repayments 286 274 270 263 250 240 18
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: Growth Momentum in Residential Real Estate
Growth Momentum in Residential Real Estate • Housing sales in Q3 CY2020 recorded an increase of 60% QoQ1 - Kolkata- 68%, Ahmedabad- 64%, MMR- 60%, Bangalore 60%1 • Sales across top 7 cities during Q3FY2020 have recovered in the range of 62% to 73% from pre-COVID levels 2 Sales Pick-up • Stock of uns
Slide 34: Static Credit Performance Analysis of LAP and HL Pools
Static Credit Performance Analysis of LAP and HL Pools 34
Slide 35: Retail Loan Book of Highest Quality
Retail Loan Book of Highest Quality Portfolio performance of all sold down pools of ₹ 63,332 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 36: Home Loans Pool Performance Factsheet: Direct Assignments
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 1 Bank 4 29-Oct-13
Slide 37: Home Loans Pool Performance Factsheet: Direct Assignments
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 28 Bank 8 31-Mar-1
Slide 38: Home Loans Pool Performance Factsheet: Direct Assignments
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 55 Bank 15 22-Jun-
Slide 39: Home Loans Pool Performance Factsheet: Direct Assignments
Home Loans Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 82 Bank 23 31-Jan-
Slide 40: LAP Pool Performance Factsheet: Direct Assignments
LAP Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 1 Bank 10 7-Feb-14 429.8
Slide 41: LAP Pool Performance Factsheet: Direct Assignments
LAP Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 28 Bank 14 28-Dec-17 436.
Slide 42: LAP Pool Performance Factsheet: Direct Assignments
LAP Pool Performance Factsheet: Experian Credit Bureau Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Disbursement Sold Down Pool Principal Amortisa- Sr. No Investor MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] Principal [₹ Cr] [₹ Cr] tion# 55 Bank 19 31-Dec-18 305.
Slide 43: 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 Pool Sold Down Disbursement Amortis- 90+ 180+ Sr No Investor Principal MPS Principal [₹ CCR MCR QCR Rating from Date [₹ Cr] ation# dpd % dpd % [₹ Cr] Cr] 1 Bank 2 30-Dec-13 109.6 99
Slide 44: Corporate Social Responsibility
Corporate Social Responsibility 44
Slide 45: Indiabulls Foundation: Corporate Social Responsibility
Indiabulls Foundation: Corporate Social Responsibility Mahatma Awards For Excellence in Corporate Social Responsibility - 2019 Health JanSwasthya Kalyan (JSK)Vahika - Free primary healthcare facility provided at doorstep to the underprivileged with 43 mobile medical vans - 1,25,425 patients diagnose
Slide 46: Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding
Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding 46
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 Ernst & Young [through Indian Member Firm S R Batliboi & Co.] Internal Auditor Grant Thor
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 5,405 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 Sep-20 Market Price per Share 155 207 272 286 558 674 998 1,194 744 228 158* [₹] 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% -
Slide 51: Shareholding Pattern
Shareholding Pattern 3.7% 21.7% 35.8% 28.6% 10.3% Founder Foreign Institutional Shareholding MFs/Banks/IFI Public Indiabulls - Employee Welfare Trust MF: Mutual Funds; IFI: Indian Financial Institutions As on 30th Sep, 2020 51
Slide 52: Detailed Financials
Indiabulls HOUSING FINANCE Detailed Financials 52
Slide 53: Consolidated Balance Sheet
Consolidated Balance Sheet 53
Slide 54: Consolidated Income Statement
Consolidated Income Statement 54
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 — Q2 FY2020-21 Earnings Presentation on 6ix