Indostar Capital Finance Limited · NSE:INDOSTAR
Indostar Capital Finance — Q2 FY2022 Earnings Presentation
41 slides from Indostar Capital Finance's earnings presentation, Nov 10, 2021
Slide 1: Q2FY22 Results Update
INDOSTAR CAPITAL FINANCE LIMITED Q2FY22 Results Update 10 November 2021
Slide 2: 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 3: Discussion Summary
Discussion Summary Quarterly Results Business Update Strategy Shareholding Structure
Slide 4: Q2FY22 in perspective
Q2FY22 in perspective • PAT for Q2FY22 ₹ 394 million and H1FY22 ₹ 26 million • Crossed ₹ 10,000 million Retail disbursement for the first time. • Retail disbursement for Q2FY22 ₹ 11,075 million vs ₹ 2,045 million for Q2FY21 and 6,271 million for Q1FY22 • Collections continue to be stable • Continued
Slide 5: Strong Liquidity & ALM
Strong Liquidity & ALM Particulars Oct-21 Nov-21 Dec-21 Q4 FY22 Q1 FY23 Q2 FY23 Opening cash & equivalents* 15,149 14,916 13,399 11,113 7,986 4,356 Loan repayment inflows [Principal] 766 937 1,071 2,698 2,776 3,470 Total inflow 15,915 15,853 14,470 13,810 10,763 7,826 Liability repayment [Principal]
Slide 6: Diversified Funding Profile
Diversified Funding Profile Funding Mix - Jun 2021 Funding Mix - Sep 2021 NCD 21% NCD 22% Equity 40% Equity 39% Banks 31% Banks 31% CP 0% Others 0% CP 1% Securitisation 8% Securitisation 7% Incremental Funding Mobilized Strong Credit Ratings ₹ mn Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Borrowing Type Rating
Slide 7: Steady reduction in the Corporate book
Steady reduction in the Corporate book Corporate Lending AUM (₹ mn) 45,270 43,067 36,267 31,646 28,687 29,287 24,760 22,872 19,096 18,710 16,304 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 6
Slide 8: Expanding Reach
Expanding Reach 278 branches across 19 states * Some branches have multiple operating segments 278 240 215 217 218 212 265 202 208 227 207 207 44 48 64 65 69 82 10 10 10 10 10 11 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 SME Finance Housing Finance CV Finance Employee Base 2,240 2,104 2,044 2,007 1,
Slide 9: Q2FY22 performance: Key Highlights
Q2FY22 performance : Key Highlights Strong Retail Franchise ~ 80% of AUM (v/s 73% in Execution of Retailisation Sep-20) Theme ICICI partnership AUM ~ ₹ 4,135 mn Comfortable liquidity; ~26% of Borrowings Strong Capitalisation & CRAR 35% Liquidity Debt : Equity ratio of 1.6x Net Revenue fr
Slide 10: Q2FY22 & H1FY22: Consolidated Profit & Loss Statement
Q2FY22 & H1FY22: Consolidated Profit & Loss Statement Particulars (₹ mn) Q2 FY22 Q1 FY22 QoQ % Q2 FY21 YoY % H1 FY22 H1 FY21 YoY % Revenue from operations 2,800 2,653 6% 3,392 (17%) 5,453 6,726 (19%) Interest expenses (1,352) (1,387) (2%) (1,854) (27%) (2,739) (3,692) (26%) Net revenue from operatio
Slide 11: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (₹ mn) Sep-21 Jun-21 QoQ % Sep-20 YoY % Equity 36,779 36,291 1% 39,695 (7%) Borrowings 57,329 55,573 3% 71,427 (20%) Other liabilities 4,040 3,960 2% 2,391 69% Total liabilities 98,149 95,824 2% 1,13,513 (14%) Loan assets 71,670 67,827 6% 78,000 (8%) Treasury a
Slide 12: Q2 FY22: Business Segment Performance
Q2 FY22: Business Segment Performance CV SME Housing Corporate Particulars (₹ mn) Consolidated ^ Finance Finance Finance Lending Revenue from operations 1,120 465 288 793 2,800 Interest expenses (443) (220) (150) (268) (1,352) Net interest income 677 245 138 525 1,448 People costs 245 46 62 (11) 533
Slide 13: H1 FY22: Business Segment Performance
H1 FY22: Business Segment Performance CV SME Housing Corporate Particulars (₹ mn) Consolidated ^ Finance Finance Finance Lending Revenue from operations 2,299 917 584 1,380 5,453 Interest expenses (847) (439) (289) (567) (2,739) Net interest income 1,452 478 295 813 2,714 People costs 426 84 111 29
Slide 14: Q2 FY22: Quarterly Performance Trend (1/2)
Q2 FY22: Quarterly Performance Trend (1/2) AUM (₹ mn) Loan Disbursements (₹ mn) 11,292 On-book Loans Off-book Loans Corporate Retail Total 8,635 90,842 88,645 83,976 78,877 81,169 6,611 13,016 13,130 6,276 12,583 11,050 9,499 11,075 4,769 8,495 77,826 75,515 71,393 67,827 71,670 2,152 6,271 2,045 1,
Slide 15: Q2 FY22: Quarterly Performance Trend (2/2)
Q2 FY22: Quarterly Performance Trend (2/2) NPA (%) PAT (₹ mn) GNPA NNPA 4.4% 4.5% 4.7% 394 316 242 2.9% 2.8% 2.2% 2.3% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 2.1% 2.1% 1.8% -3,171 -368 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Net worth (₹ mn) Return Ratios^ & Capital Adequacy (%) 39,695 40,046 35.0% 35.3% 34.
Slide 16: Asset Quality
Asset Quality Gross NPA (₹ mn) Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 CV finance 578 805 2,900 2,613 2,775 SME finance 180 261 382 456 533 Housing finance 69 138 159 261 303 Corporate lending 1,546 1,076 - - - Total 2,372 2,280 3,441 3,329 3,611 Net NPA (₹ mn) Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 CV finan
Slide 17: Discussion Summary
Discussion Summary Quarterly Results Business Update Strategy Shareholding Structure
Slide 18: Retailisation Strategy on track
Retailisation Strategy on track AUM: CL vs Retail (%) Disbursements: CL vs Retail (%) 90,842 88,645 83,976 78,877 81,169 2,152 6,611 8,635 6,276 11,292 73% 75% 72% 78% 77% 80% 95% 98% 100% 98% 28% 27% 25% 22% 23% 20% 5% 2% 2% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2
Slide 19: Retail Business Volume
Retail Business Volume Retail AUM (₹ mn) Retail Disbursements (₹ mn) 68,617 68,160 67,116 66,056 11,075 61,928 8,538 9,152 9,911 11,028 10,045 8,495 17,495 17,994 18,338 18,535 17,669 7,825 6,271 4,769 5,302 42,584 41,014 2,603 5,199 38,866 36,493 2,045 34,214 1,201 1,346 856 850 760 1,316 1,992 467
Slide 20: CV Finance (1/3)
CV Finance (1/3) CV Finance – Monthly Disbursement Trend (₹ mn) 2,699 2,703 2,423 2,310 2,043 1,918 1,596 1,374 1,396 1,238 944 574 284 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 CV Finance AUM ₹ 36,493 mn AUM of ICICI Bank tie-up ₹ 4,135 mn Stro
Slide 21: CV Finance: Profit and Loss (2/3)
CV Finance : Profit and Loss (2/3) Particulars (₹ mn) Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Revenue from operations 1,459 1,287 1,292 1,178 1,120 Interest expenses (642) (526) (490) (404) (443) Net interest income 817 761 802 775 677 People costs 182 184 243 181 245 Operating expenses 157 154 169
Slide 22: CV Finance: Key ratios (3/3)
CV Finance : Key ratios (3/3) Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Branches & Employees Revenue from operations* 15.7% 15.1% 15.1% 16.0% 14.1% Net interest income* 8.8% 8.9% 9.4% 10.5% 8.5% 350 1,643 2,000 300 1,606 1,532 1,521 1,463 1,443 Operating expenses* 3.6% 4.0% 4.8% 6.2% 5.7% 250 1,500 Co
Slide 23: SME Finance (1/3)
SME Finance (1/3) SME Finance – Monthly Disbursement Trend (₹ mn) 744 685 663 620 621 563 485 414 418 374 200 162 69 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 SME Finance AUM : ₹ 18,535 mn Assigned Portfolio : ₹ 3,679 mn 22
Slide 24: SME Finance: Profit and Loss (2/3)
SME Finance: Profit and Loss (2/3) Particulars (₹ mn) Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Revenue from operations 419 432 536 452 465 Interest expenses (232) (242) (227) (219) (220) Net interest income 187 190 309 233 245 People costs 42 47 45 38 46 Operating expenses 16 20 37 13 13 Pre-provisio
Slide 25: SME Finance: Key ratios (3/3)
SME Finance : Key ratios (3/3) Branches & Employees Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Revenue from operations* 12.6% 12.6% 15.3% 13.0% 12.9% Net interest income* 5.6% 5.5% 8.8% 6.7% 6.8% 89 89 88 87 88 103 Operating expenses* 1.8% 1.9% 2.3% 1.4% 1.6% 10 10 10 10 10 11 Cost / Income 31.3% 35.2%
Slide 26: Housing Finance (1/3)
Housing Finance (1/3) Housing Finance – Monthly Disbursement Trend (₹ mn) 534 489 424 376 387 336 278 303 270 206 186 190 90 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Housing Finance AUM : ₹ 11,028 mn Assigned Portfolio : ₹ 1,373 mn 25
Slide 27: Housing Finance: Profit and Loss (2/3)
Housing Finance: Profit and Loss (2/3) * Particulars (₹ mn) Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Revenue from operations 285 600 192 297 288 Interest expenses (132) (138) (126) (139) (150) Net interest income 153 462 66 158 138 People costs 51 53 24 49 62 Operating expenses 27 26 38 30 27 Pre-pro
Slide 28: Housing Finance: Key Ratios (3/3)
Housing Finance : Key Ratios (3/3) Branches & Employees Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Revenue from operations* 14.7% 14.9% 9.8% 13.9% 12.8% 361 303 Net interest income* 7.9% 7.9% 3.4% 7.4% 6.1% 275 274 294 271 Operating expenses* 4.0% 4.0% 3.1% 3.7% 3.9% Cost / Income 51.3% 50.0% 92.5% 50.
Slide 29: FY22 Restructuring Snapshot
FY22 Restructuring Snapshot No. of AUM under % of no. of % of Total no of Total AUM Q2FY22 Restructured Restructure Restructured Restructured Accounts accounts accounts AUM (INR mn) (INR mn) VF 68,101 4,376 36,493 3,242 6.4% 8.9% SME 2,637 190 18,535 2,137 7.2% 11.5% AHF 15,902 22 11,028 17 0.1% 0.2
Slide 30: Corporate Lending (1/3)
Corporate Lending (1/3) Corporate Lending AUM (₹ mn) AUM Breakup: RE vs. Non-RE 45,270 43,067 10% 10% 12% 19% 18% 36,267 31,646 28,687 29,287 24,760 22,872 19,096 18,710 90% 88% 16,304 82% 90% 81% Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY2
Slide 31: Corporate Lending: Profit and Loss (2/3)
Corporate Lending: Profit and Loss (2/3) Particulars (₹ mn) Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY22 Q2 FY22 Revenue from operations 991 834 577 587 793 Interest expenses (488) (414) (350) (298) (268) Net interest income 503 420 227 289 525 People costs 15 17 18 40 (11) Operating expenses 59 9 32 20 41 Pr
Slide 32: Corporate Lending: Key ratios (3/3)
Corporate Lending : Key ratios (3/3) Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY22 Q2 FY22 Revenue from operations* 13.7% 13.5% 10.0% 12.3% 18.2% Net interest income* 7.0% 6.8% 3.9% 6.0% 12.1% Operating expenses* 1.0% 0.4% 0.9% 1.3% 0.7% Cost / Income 14.7% 6.2% 21.8% 20.9% 5.7% Pre-provision operating profit
Slide 33: Discussion Summary
Discussion Summary Quarterly Results Business Update Strategy Shareholding Structure
Slide 34: Strategy
Strategy • To build a 100% retail company • To reduce the Corporate book to less than 10% of AUM by March 22 • To build a profitable retail platform with growth potential to deliver excellent value to all stakeholders • To build a separate collection vertical to achieve collections efficiency and su
Slide 35: Laying foundation for future growth
Laying foundation for future growth 1. Strengthened Balance Sheet • Brought Brookfield as partner with ₹ 12,250 million primary capital and strengthened Capital adequacy and Liquidity • Created additional provisions to overcome Covid impact 2. Reduced Corporate Lending Exposure • On track to become
Slide 36: Entrepreneurial Leadership Team with Strong Sponsor Backing
Entrepreneurial Leadership Team with Strong Sponsor Backing Several years of experience and in-depth understanding of the specific industry and geographic regions Separate business & credit heads for each vertical Strong alignment through large ESOP program 20+ years of 30+ years of experi
Slide 37: Entrepreneurial Leadership Team with Strong Sponsor Backing
Entrepreneurial Leadership Team with Strong Sponsor Backing Several years of 31 years of Several years of experience with experience in experience with financial banks & financial SME, Institutions 20+ years of Institutions commercial experience in banking, and Previously Previously work
Slide 38: Strong & Distinguished Board
Strong & Distinguished Board 14 committees composed of independent and non-independent directors and also employees1 Distinct and delineated responsibilities to ensure good corporate governance Strong capital sponsorship also providing access to best industry practices and international corpor
Slide 39: Discussion Summary
Discussion Summary Strategy Quarterly Results Business Update Shareholding Structure
Slide 40: Shareholding Pattern
Shareholding Pattern Shareholding# as on 30 September 2021 Public 11.84% # Brookfield 51.93% Indostar Capital Mauritius 36.23%^ # Excluding CCPS ^ including Everstone Capital Partners II LLC & ECP III FVCI Pte Ltd ESOP is 4.3% of diluted shares capital (excluding CCPS) Source – NSE, Company data 39
Slide 41: For Further Queries
For Further Queries Salil Bawa Head Investor Relations Contact No: +91 9987644008 Email – sbawa@indostarcapital.com Email - investor.relations@indostarcapital.com Media Contact Snigdha Nair Adfactors PR Email - snigdha.nair@adfactorspr.com; indostar@adfactorspr.com
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