Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — FY2013 Earnings Presentation
34 slides from Sammaan Capital's earnings presentation, Apr 23, 2013
Slide 1: Indiabulls Housing Finance Limited Audited Financial Results – FY 2012-13
Indiabulls Housing Finance Limited Audited Financial Results – FY 2012-13 April 23, 2013
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document contains certain forward-looking statements based on current expectations of Indiabulls management. Actual results may vary significantly from the forward-looking statements in this document due to various risks and uncertainties. These risks and uncertainties in
Slide 3: Contents
Contents Pg. No. 1. Business Update 5 2. Indian Mortgage Market 9 3. Financial and Operational Highlights 13 4. Valuations and Shareholding 28 5. Detailed Financials 31 3
Slide 4: Our Journey
Our Journey 2012-13 Conversion to HFC India’s 3rd largest HFC by loan assets PAT Rs.1266 cr. Balance sheet: Rs. 39,128 cr. 2011-12 RoE: 25.6% Credit rating upgraded to AA+. PAT crosses Rs.1000 cr . 2010 - 11 Balance sheet crosses Rs. 30,000 cr RoE: 21.9%. Credit rating upgraded t
Slide 5: Business Update
Business Update 5
Slide 6: Key Financial Highlights: FY12-13
Business Update Key Financial Highlights: FY12-13 FY 12-13 FY 11-12 Growth (%) Total Revenues (Rs. Cr.) 4,777.87 3,827.68 24.82% PBT (Rs. Cr.) 1,655.06 1,321.94 25.20% PAT (Rs. Cr.) 1,265.99 1,006.37 25.80% EPS (Rs.) 40.19 32.00 25.59% RoE% 25.65 21.99 CRAR% 18.47 18.86 Year-on-Year (Y-o-Y) Comparis
Slide 7: Business Summary
Business Summary • Loans Outstanding : Rs. 34,425 Cr (March 31, 2013) : (US$ 6.38 bn) • Loan Book CAGR (5 years) : 26% • Cumulative Loans given to retail Customers : 5.49 Lakh • Cumulative Loans Disbursed till date : Rs. 71,000 Cr (US$ 13.15 bn) • Cost to Income Ratio (FY 2013) : 18.0% • Profit Afte
Slide 8: Country-wide Reach
Country-wide Reach Number of Outlets 2010 140 Tier I 56 2011 163 Tier II 87 2012 180 Tier III 57 2013 200 Total 200 National and International reach further enhanced from sourcing tie-ups with Yes Bank and Doha Bank 8
Slide 9: Indian Mortgage Market
Indian Mortgage Market 9
Slide 10: Headroom for Growth - Low Mortgage Penetration
Indian Mortgage Market Headroom for Growth - Low Mortgage Penetration 101% 84% 76% 42% 45% 34% 19% 14% 8% India China Thailand Malaysia Hong Kong Germany USA UK Denmark Source: European Mortgage Federation, 2011, HOFINET, 2011 & market estimates for India • Lower mortgage penetration compared to adv
Slide 11: Growing HFC Market Share in a Steadily Expanding Home Loans Market
Indian Mortgage Market Growing HFC Market Share in a Steadily Expanding Home Loans Market 12,000 45% 40% 10,000 37% 40% 35% 8,000 Rs. Billion 32% 35% 6,000 30% 27% 27% 30% 4,000 2,000 25% 3,695 3,990 4,541 5,448 6,249 7,110 10,958 - 20% FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 16E Home Loan Portfolio
Slide 12: Tax Incentives – Low Effective Interest Rates
Indian Mortgage Market Tax Incentives – Low Effective Interest Rates Particular 2013 2010 2000 Loan Amt (Rs) 2,500,000 2,500,000 2,500,000 Nominal Interest Rate(%) 10.15% 9.25% 13.25% Max deduction for interest allowed * 250,000 150,000 75,000 Deduction Principal 100,000 100,000 20,000 Tax Rate appl
Slide 13: Financial and Operational Highlights
Financial and Operational Highlights 13
Slide 14: Balance Sheet Assets
Balance Sheet Assets 3% 18% Loan Book: 79% Cash & Liquid Investments: 18% Other Assets: 3% 79% Total Assets As at March 31, 2013 Rs. 39,128 Cr. (US$ 7.25 bn) As at March 31, 2012 Rs. 32,225 Cr. (US$ 5.97 bn) * Cash, Cash Equivalents and Investments in Liquid Debt Instruments US $ amounts are convert
Slide 15: Loan Book Growth
Loan Book Growth Total Loan Assets (Rs. Cr.) Loans Sold (Rs. Cr.) (in preceding 12 months) 34,425.0 2,378.9 2,397.4 27,521.2 19,824.8 177.3 Mar-11 Mar-12 Mar-13 Mar-11 Mar-12 Mar-13 • The growth in the loan book inclusive of loans sold in the previous 12 months is 25% • Loans amounting to Rs. 2,397.
Slide 16: Asset Composition
Asset Composition FY 12-13 FY 11-12 21% 21% 7% 8% 72% 71% • Home loans, which forms the majority of incremental disbursals, are disbursed at an average ticket size of Rs. 24 lacs; average LTV of 65% (at origination) 16
Slide 17: Mortgage Loans' Sourcing
Mortgage Loans' Sourcing 68% of Mortgage loans are sourced in-house 27% 5% 62% 6% DST Branch Walk-ins Bank Tie-ups DSA • Increasing DST man power and improving productivity will push in-house sourcing to over 75% in FY14 • Bank tie-ups: Increased reach through Yes Bank and Doha Bank tie-ups will res
Slide 18: Conservative Home Loan Profile
Conservative Home Loan Profile Average Loan Size 24 Lacs Maximum Loan to Value 80% Average Loan to Value 65% (at origination) Average Loan Term 13 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing 18
Slide 19: Conservative Loan Against Property Profile
Conservative Loan Against Property Profile Average Loan Size 65 Lacs Maximum Loan to Value 65% Average Loan to Value 48% (at origination) Average Loan Term 7 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing 19
Slide 20: Asset Quality
Asset Quality (as % of Total Loan Book) 1.03% 0.79% 0.79% 0.66% 0.46% 0.46% 0.37% 0.33% 0.33% Mar-11 Mar-12 Mar-13 Gross NPA General & Specific Provisions Net NPA • Focus on underwriting Low risk mortgage assets at low LTV’s with emphasis on cash flows of borrowers has allowed the company to maintai
Slide 21: Liabilities
Liabilities 6% 14% Share Holder’s Funds: Rs. 5,315 Cr. (US$ 0.98 bn) Borrowings: Rs. 31,286 Cr. (US$ 5.8 bn) Other Liabilities: Rs. 2,527 Cr. (US$ 0.47 bn) 80% Total Liabilities: As of March 31, 2013: Rs. 39,128 Cr. (US$ 7.25 bn) As of March 31, 2012: Rs. 32,225 Cr. (US$ 5.97 bn) US $ amounts are co
Slide 22: Diversified Borrowing Programme
Diversified Borrowing Programme 11% 10% 8% 20% 25% 30% Bank Loans Bonds Commercial Paper 69% 65% 62% Mar-11 Mar-12 Mar-13 Total Borrowings: As of March 31, 2013: Rs. 31,286 Cr. (US$ 5.8 bn) As of March 31, 2012: Rs. 25,287 Cr. (US$ 4.7 bn) US $ amounts are converted based on the exchange rate of US
Slide 23: Diversified Borrowing Programme
Diversified Borrowing Programme 35,000 7 31,286 Borrowings 30,000 (Rs. Cr.) 6 25,287 25,000 5 19,319 20,000 4.67 4 3.92 15,000 3 3.13 10,000 2 5,000 1 - 0 Mar-11 Mar-12 Mar-13 Borrowing Net Gearing Net Gearing: Borrowings Net of ‘Cash & Cash Equivalents’ and ‘Investments in Liquid Debt Instruments’
Slide 24: Optimally Matched Balance Sheet
Optimally Matched Balance Sheet Maturity Profile (As of March 31,2013) 14,492 * 13,614 13,920 13,454 11,480 10,136 Up to 1 yr 1 - 5 yrs Over 5 yrs Assets Liabilities (Amounts in Rs. Cr.) • * Assets in the ‘Up to 1 Yr’ bucket includes Rs. 7,196.0 Cr. of Cash, Cash equivalents and investments in liqui
Slide 25: Our Strengths
Our Strengths Home Loan Strengths • In-house sourcing & collection teams – low and stable NPA levels • Low average loan to value ratios • Emphasis on borrower cash flow stability during loan appraisal • Experienced underwriting team - company has cumulatively disbursed over Rs. 70,000 Cr since FY06
Slide 26: Rising Productivity Ratios
Rising Productivity Ratios FY 2013 FY 2012 FY 2011 No. Of Employees 4,072 4,243 4,512 No Of Outlets 200 181 163 Profit Per employee (Rs. Cr.) 0.31 0.24 0.17 Asset Per employee (Rs. Cr.) 8.09 5.85 3.71 Cost Income Ratio 18.0% 18.7% 23.4% 26
Slide 27: Key Financial Metrics
Key Financial Metrics FY 2013 FY 2012 FY 2011 Pre Tax ROAA (%) 4.9% 4.9% 5.5% Post Tax ROAA (%) 3.8% 3.7% 4.1% ROE (%) 25.6% 21.9% 17.2% Capital Adequacy (%) 18.47% 18.86% 20.09% - Of which Tier I 14.96% 18.21% 19.89% - Tier II 3.51% 0.65% 0.20% 27
Slide 28: Valuations and Shareholding
Valuations and Shareholding 28
Slide 29: Valuations and Returns
Valuations and Returns Mar-13 Mar-12 Mar-11 Market Price per share* (Rs.) 271.8 207.1 154.8 Market Capitalisation* (US$ Bn) 1.57 1.19 0.89 PE Ratio (times) 6.8 6.5 6.5 Book Value per share (Rs.) 165.4 157.7 146.0 Price to Book Ratio (times) 1.6 1.3 1.1 Dividend per share (Rs.) 20 13 10 Dividend as %
Slide 30: Shareholding Pattern
Shareholding Pattern 13.5% 3.6% 37.7% 45.2% Promoters FIIs MFs/Banks/IFI Public FII: Foreign Institutional Investors MF: Mutual Funds IFI: Indian Financial Institutions 30
Slide 31: Detailed Financials
Detailed Financials 31
Slide 32: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. 7,196.0 Cr of Cash & Cash Equivalents and Investments in Liquid Debt Instruments 32
Slide 33: Consolidated Income Statement
Consolidated Income Statement 33
Slide 34: Thank you
Thank you
Indiabulls Housing Finance — FY2013 Earnings Presentation on 6ix