Indostar Capital Finance Limited · NSE:INDOSTAR
Indostar Capital Finance — Q2 FY2023 Earnings Presentation
26 slides from Indostar Capital Finance's earnings presentation, Nov 8, 2022
Slide 1: Regulation 30 filing cover letter to stock exchanges
ICFL/LS/0110/2022-23 09 November 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, Bandra, Mumbai - 400 001. (E), Mumbai – 400 051. Scrip Code: 541336 Symbol: INDOSTAR Sub.: Reg
Slide 2: Q2FY23 Results Update
INDOSTAR CAPITAL FINANCE LIMITED Q2FY23 Results Update 8 November 2022
Slide 3: Disclaimer
Disclaimer 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 subscribe for or
Slide 4: Executive Summary
Executive Summary • Steady performance over last 2 quarters. Continued Profitability, Robust collections, lower credit cost provisions in the quarter resulting in consolidated PAT of INR 52 crore • On consolidated basis, raised incremental funding of INR 2,527 crore during H1 FY23, strengthened ALM
Slide 5: Agenda
Agenda • Summary Financials • Collections and Asset Quality • Liquidity and Funding • Retailisation on track 3
Slide 6: Q2 FY23 & H1 FY23: Consolidated Profit & Loss Statement
Q2 FY23 & H2 FY23: Consolidated Profit & Loss Statement Particulars (₹ crore) Q2FY23 Q1FY23 Q4FY22 H1 FY23 H1 FY22 Revenue from operations 295 314 341 609 545 Interest expenses 146 147 138 293 274 Net revenue from operations 149 167 203 316 271 People costs 58 55 43 113 102 Operating expenses 55 48
Slide 7: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (₹ crore) Sep-22 Jun-22 Mar-22 Sep-21 Equity 3,050 2,995 2,929 3,678 Borrowings 5,604 5,869 6,223 5,733 Other liabilities 341 456 509 404 Total liabilities 8,995 9,320 9,661 9,815 Loan assets 6,406 6,654 7,707 7,167 Treasury assets 1,393 1,445 1,037 1,831 Fixed
Slide 8: Q2 FY23: Business Segment Performance
Q2 FY23: Business Segment Performance CV SME Housing Corporate Particulars (₹ crore) Consolidated ^ Finance Finance Finance Lending Revenue from operations 142 39 57 46 295 Interest expenses 57 24 16 23 146 Net interest income 85 14 41 23 149 People costs 31 4 13 1 58 Operating expenses 33 2 8 0 55
Slide 9: H1 FY23: Business Segment Performance
H1 FY23: Business Segment Performance CV SME Housing Corporate Particulars (₹ crore) Consolidated ^ Finance Finance Finance Lending Revenue from operations 289 98 113 90 609 Interest expenses 118 49 31 47 293 Net interest income 171 49 81 43 316 People costs 62 8 22 2 113 Operating expenses 56 4 17
Slide 10: CV Finance: Profit & Loss
CV Finance : Profit & Loss Particulars (₹ crore) Q2 FY23 Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Revenue from operations 142 147 150 142 112 Interest expenses 57 62 65 47 44 Net interest income 85 85 84 95 68 People costs 31 30 31 29 25 Operating expenses 33 23 26 20 21 Total operating expenses 64 53 58 48
Slide 11: SME Finance: Profit & Loss
SME Finance : Profit & Loss Particulars (₹ crore) Q2 FY23 Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Revenue from operations 39 59 44 44 46 Interest expenses 24 24 25 22 22 Net interest income 14 34 19 22 24 People costs 4 4 6 4 5 Operating expenses 2 1 2 2 1 Total operating expenses 6 6 8 6 6 Pre-provision op
Slide 12: Housing Finance: Profit & Loss
Housing Finance : Profit & Loss Particulars (₹ crore) Q2 FY23 Q1 FY23 Q4 FY22 Q3 FY22 * Q2 FY22 Revenue from operations 57 56 54 33 29 Interest expenses 16 16 5 15 15 Net interest income 41 40 48 18 14 People costs 13 9 11 7 6 Operating expenses 8 8 6 3 3 Total operating expenses 22 18 16 10 9 Pre-p
Slide 13: Corporate Lending: Profit & Loss
Corporate Lending : Profit & Loss Particulars (₹ crore) Q2 FY23 Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Revenue from operations 46 44 87 49 79 Interest expenses 23 23 26 23 27 Net interest income 23 21 61 26 52 People costs 1 1 1 1 (1) Operating expenses 0 0 0 2 4 Total operating expenses 2 1 2 3 3 Pre-prov
Slide 14: Agenda
Agenda • Summary Financials • Collections and Asset Quality • Liquidity and Funding • Retailisation on track 12
Slide 15: Strong Collection Efficiency
Strong Collection Efficiency 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% Apr 22 241 195 148 344 142% May 22 240 207 205 411 171% Jun 22 2
Slide 16: Asset Quality Overview (Q4 FY22 – Q2 FY23) - Consolidated
Asset Quality Overview (Q4 FY22 – Q2 FY23) - Consolidated • Significant reduction in Net Stage 3 ratios between Q4 FY 22 and Q2 FY23 • Continue to maintain prudent provisioning Prudent Provisioning 6.4% 13.6% 60.1% 8.2% 3.6% 57.8% 7.1% 2.9% 56.8% Q4FY22 Q1FY23 Q2FY23 Q4FY22 Q1FY23 Q2FY23 Q4FY22 Q1FY
Slide 17: Asset Quality Overview (Q4 FY22 – Q2 FY23) - Standalone
Asset Quality Overview (Q4 FY22 – Q2 FY23) - Standalone • Significant reduction in Net Stage 3 ratios between Q4 FY 22 and Q2 FY23 • Continue to maintain prudent provisioning • Capital Adequacy Ratio (CAR) September 22: 34.1% (June 22: 29.0%; March 22: 25.8%) Prudent Provisioning 7.3% 61.4% 15.5% 9.
Slide 18: Agenda
Agenda • Summary Financials • Collections and Asset Quality • Liquidity and Funding • Retailisation on track 16
Slide 19: Liquidity & Debt repayment
Liquidity & Debt repayment Particulars (₹ crore) Oct-22 Nov-22 Dec-22 Q4 FY23 Q1 FY24 Q2 FY24 Opening cash & equivalents* 1,459 1,399 1,220 1,120 1,056 968 Loan repayment inflows [Principal] 65 72 95 291 303 294 Fresh borrowings - - - - - - Total inflow 1,524 1,471 1,315 1,411 1,359 1,262 Liability
Slide 20: Credit rating remains strong
Credit rating remains strong Funding Mix - September 2022 Strong Credit Ratings NCD 4% Borrowing Type Rating Firm Ratings CRISIL AA (–) Term Loans CARE A+ Equity 35% CRISIL AA (–) Redeemable Banks 39% NCDs CARE A+ CRISIL / CARE / CPs A1 (+) Securitisatio ICRA CP 2% n 19% • CRISIL re-affirmed long-te
Slide 21: Funding raised in H1 FY23 – Consolidated
Funding raised in H1 FY23 – Consolidated Source Amount (₹ crore) Term Loan 1,020 Commercial Paper 350 Private Bank - WCDL 125 Cash from loan sale to ARC (net amount) 132 Securitisation (net of cash collateral) 900 Total 2,527 19
Slide 22: Agenda
Agenda • Summary Financials • Collections and Asset Quality • Liquidity and Funding • Retailisation on track 20
Slide 23: Retailisation strategy on track
Retailisation strategy on track AUM: CL vs Retail (%) Disbursements: CL vs Retail (%) 8,572 9,236 9,658 8,247 7,908 1,129 1,480 1,710 344 334 81% 82% 84% 85% 84% 98% 98% 99% 96% 97% 19% 18% 16% 15% 16% 2% 2% 1% 4% 3% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 CL
Slide 24: Retail Business Volume
Retail Business Volume • Disbursement had grown 2x in 12 months from Q4 FY21 to Q4 FY22, before slowing in Q1 and Q2 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 1,406 1,221
Slide 25: National footprint creating runway for growth
National footprint creating runway for growth 424 branches across 22 states * Some branches have multiple operating segments 413 424 404 343 278 240 373 370 374 318 265 227 69 82 87 100 109 134 10 11 11 11 11 9 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep'22 SME Finance Housing Finance CV Finance Employee
Slide 26: 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
IndoStar Capital Finance — Q2 FY2023 Earnings Presentation on 6ix