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  • Indiabulls Housing Finance Limited (CIN: L65922DL2005PLC136029)

    Unaudited Financial Results Q3 FY 2014-15

    January 19, 2015

  • 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 include the effect of economic and political conditions in India, and outside India, volatility in interest rates and in Securities markets, new regulations and government policies that might impact the business of Indiabulls, the general state of the Indian economy and the managements ability to implement the companys strategy. Indiabulls doesnt undertake any obligation to update these forward-looking statements.

    This document does not constitute an offer or recommendation to buy or sell any securities of Indiabulls or any of its subsidiaries or associate companies. This document also doesnt constitute an offer or recommendation to buy or sell any financial products offered by Indiabulls.

    Investor Contact Media Contact

    Ramnath Shenoy Rahat Ahmed

    investor.relations@indiabulls.com mediaquery@indiabulls.com

    +91 22 6189 1444 +91 22 6189 1155

    2

    Safe Harbour Statement

  • 3

    Pg. No.

    1. Business Update 4

    2. Operational Update 7

    3. Indian Mortgage Market 11

    4. Financial and Operational Highlights 17

    5. Sustained Financial Performance 32

    6. Key Ratios, Valuations and Shareholding 39

    7. Detailed Financials 44

    Contents

  • 4

    Business Update

  • 2000

    2004

    2005

    2006

    2008

    Started as an NBFC

    IPO and listing

    Multi-product lending

    Launched secured mortgage and commercial vehicle businesses

    Credit rating of AA-

    Loan book crosses Rs.10,000 Cr.

    Exit from unsecured personal and business loans

    Mortgage finance focused growth plan

    Home loans to prime salaried segments

    In-house sales team ramp up to over 1,000 employees

    2009

    2010 - 11

    Credit rating upgraded to AA

    Retail mortgage constitutes 70% of loan book

    Balance sheet crosses Rs. 20,000 Cr.

    RoE: 17%

    Credit rating upgraded to AA+

    PAT crosses Rs.1,000 Cr.

    Balance sheet crosses Rs. 30,000 Cr.

    RoE: 22%

    2011-12

    2012-13

    Our Journey

    PAT: Rs.1,569 Cr.

    Loan assets: Rs.41,169 Cr.

    RoE: 27%

    2013-14

    Conversion to HFC

    Indias 3rd largest HFC by size

    PAT Rs.1,266 Cr., RoE: 26%

    Balance sheet: Rs. 39,129 Cr.

    5 5

    FY 2014-15: Long-term credit rating upgraded to AAA

  • Business Update

    6

    9M FY 14-15 9M FY 13-14 Growth (%)

    Total Revenues (Rs. Cr.) 5,179.8 4,392.7 17.9%

    NII (Rs. Cr.) 2,266.6 1,902.6 19.1%

    PAT (Rs. Cr.) 1,350.2 1,117.0 20.9%

    EPS (Rs.) 39.4 34.4

    Key Financial Highlights: 9M FY 2014-15

    Year-on-Year (Y-o-Y) Comparison Q3 FY14-15 v/s Q3 FY13-14

    Q3 FY 14-15 Q3 FY 13-14 Growth (%)

    Total Revenues (Rs. Cr.) 1,871.2 1,574.6 18.8%

    NII (Rs. Cr.) 828.0 659.0 25.6%

    PAT (Rs. Cr.) 478.1 395.1 21.0%

    EPS (Rs.) 13.5 11.9

    The company had cash, cash equivalents and investments in liquid debt instruments of Rs. 7,813 Crs as at 31st December, 2014. The company receives income from its cash, cash equivalents and investments in liquid debt instruments through the quarter, which appears in Other Income.

    For Q3 FY15, dividend of Rs. 9/- per share of face value Rs. 2/- has been declared. With this, total dividend for 9MFY15 would be Rs. 26/- per share of face value of Rs. 2/- .

  • 7

    Operational Update

  • Business Summary

    Loans Outstanding : Rs. 48,078 Cr (December 31, 2014) : (US$ 7.75 bn)

    Loan Book CAGR (6 years) : 26 % Cumulative Number of Retail Customers Served : 6.30 Lacs Cumulative Loans Disbursed till date : Rs. 100,185 Cr (US$ 16.16 bn)

    Cost to Income Ratio (FY 2014) : 17%

    Profit After Tax CAGR (6 years) : 20%

    8 US $ amounts are converted based on the exchange rate of US $1 = Rs. 62

  • Credit Ratings

    9

    Long Term Rating

    Short Term Rating

    CARE Ratings AAA A1+

    Brickwork Ratings AAA

    CRISIL (A Standard & Poors Company) AA+ A1+

    ICRA (An Associate of Moodys Investor Service) AA+ A1+

    India Ratings & Research (A Fitch Group Company)

    A1+

  • Country-wide Reach

    10

  • 11

    Indian Mortgage Market

  • Vast Affordable Housing Opportunity

    Urban Housing Shortage: estimated at 31.9 million units by 20161

    - Demand continues to increase due to rapid urbanization, growing trend of nuclear families and rising income

    Affordable Housing: Policy makers focus on Home loans up to 50 Lacs (from sub 25 Lacs classified as priority sector lending)

    - HFCs are permitted to borrow through ECBs for lending towards affordable housing

    - IBHFL has already tied up facilities of $ 200 million

    Government policy focus towards affordable housing

    - Relaxation of real estate FDI norms and REIT norms

    - Rs. 4,000 crores allocated for low-cost housing and Rs. 50,000 crores for urban housing2

    - Rs. 8,000 crores allocated to the Rural Housing Fund run by NHB2

    2 million affordable housing units to be launched in the next 3 years

    12 1 CRISIL Report; 2 RBI Deputy Governor Speech, Aug 2014

  • 09% 17% 20%

    26% 29% 41%

    81% 88%

    India Thailand China Korea Malaysia Hong Kong USA UK

    Lower mortgage penetration compared to advanced and emerging economies implies huge opportunity for growth

    Indian mortgage industry at an inflection point and is expected to grow five-fold in next 10 years

    In this years budget, the Government has increased tax exemption limits on home loan repayments, effectively lowering the rate of interest

    Government has underlined support for affordable housing in the budget, which has been followed up by prompt steps by the regulator

    13

    Headroom for Growth - Low Mortgage Penetration

    Indian Mortgage Market

    Source: National Housing Bank, 2013

  • 3,695 3,990 4,541 5,448 6,249 7,110 10,958

    27% 27% 30%

    32% 35%

    37% 40%

    20%

    25%

    30%

    35%

    40%

    45%

    -

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 16E

    Rs.

    Bill

    ion

    Home Loan Portfolio HFCs' Share

    14

    Growing HFC Market Share in a Steadily Expanding Home Loans Market

    Source: RBI Database, NHB Reports, CRISIL, & ICRA Estimates

    (Amounts in Rs. Bn)

    Indian Mortgage Market

    High demand growth driven by: Increasing Affordability: Rising disposable incomes coupled with low effective interest rate of

    only 4.22 % after tax benefits

    Average age of house owner has reduced to 35 years from 43 years in FY20002

    Urbanisation to rise to 40% of population by 2025 from the current 31%1

    Urban Housing Shortage: estimated at 31.9 million units by 20162

    Favourable Demographics: 60% of the countrys population is below 30 years of age3

    1 NHB Report, 2012; 2 CRISIL Report; 3 Census 2011

  • Recent Government Policy Initiatives

    Housing for all by 2022: A major policy goal for the new government

    - 65 million new housing units

    - Government focus on making organised housing finance available to all

    100 smart cities plan: Technologically integrated and planned townships

    - Large housing opportunity

    - Concentrated market and government focus to reduce delivery expenses and improve operating margins

    Jan Dhan Yojana: Access to organised banking for all present coverage: 58%

    - Vast increase in organised banking infrastructure and reach

    - Ultimate benefit and knock on effect on credit off-take and growth

    15

  • Particular 2015 2010 2000

    Loan amt 2,000,000 2,000,000 2,000,000

    Nominal Interest Rate(%) 10.15% 9.25% 13.25%

    Max deduction for interest allowed 200,000 150,000 75,000

    Deduction Principal 150,000 100,000 20,000

    Tax Rate applicable 33.99% 30.90% 34.50%

    Tenor (Yrs) 15 15 15

    Total amount paid per year 350,267 282,302 307,617

    Interest component 200,267 182,302 262,314

    Principal component 150,000 100,000 45,303

    Tax amount saved 118,965 77,250 32,775

    Effective interest paid on home loan 81,302 105,052 229,539

    Effective interest rate on home loan 4.22% 5.39% 11.61%

    Indian Mortgage Market

    16

    Tax Incentives Low Effective Interest Rates

    Amount in Rs.

  • 17

    Financial and Operational Highlights

  • 80%

    15%

    5%

    Balance Sheet Assets

    18 * Cash, Cash Equivalents and Investments in Liquid Debt Instruments US $ amounts are converted based on the exchange rate of US $1 = Rs. 62

    Total Assets

    As at December 31, 2014 Rs. 53,402 Cr. (US$ 8.61 bn)

    As at December 31, 2013 Rs. 43,750 Cr. (US$ 7.06 bn)

    Loan Book: 80% Cash & Liquid Investments*: 15% Other Assets: 5%

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