Can Fin Homes Ltd. · NSE:CANFINHOME
Can Fin Homes — Q2 FY2025 Earnings Presentation
36 slides from Can Fin Homes's earnings presentation, Oct 22, 2024
Slide 1: Submission of Investor Presentation - Post Q2 FY25 Results
CAN FIN HOMES LIMITED Registered Office No. 29/1, 1st Floor, Sir M N Krishna Rao Road Near Lalbagh West Gate, Basavanagudi Bengaluru – 560 004 Tel: 080-48536192; Fax: 26565746 e-mail: [email protected] Web: www.canfinhomes.com CIN – L85110KA1987PLC008699 CFHRO SE CS LODR 257/2024 October 22, 2
Slide 2: Investor Presentation Q2FY25
Investor Presentation Q2FY25 Reinforce. Rebuild. Reach Higher. 36 years of vision, passion and progress October 2024 Offering home loans since 1987….. and it is just a beginning
Slide 3: Legacy, Focus, Reach
Legacy Focus Reach • 36 year old • To promote home • Headquartered institution registered ownership across in Bengaluru as a deposit taking India, with a motto HFC with NHB of friendship • Pan-India presence finance and good with 186 branches, • Promoted by Canara service 21 Affordable Bank in the y
Slide 4: Company milestones since 1987
ET Edge 2015 Promising 2021 Brand Award to Can Fin Homes Ltd. 1989 11 more branches Rights issue of CFHL are added, including – mCap over New Delhi 1991 Loan book crossed Rs. 1000 Cr Rs. 100 Cr Successful completion of 35 Years Loan book over 2016 100th branch at Begur, Rs. 10000 Cr AUM crossed 2022
Slide 5: Company will continue its thrust on growth, asset quality, profitability and liquidity
• Company will continue its thrust on growth, asset quality, • Company intends to evolve further • Expansion of sourcing channels to profitability and liquidity. with the help of technology, duly attract different segments of • Unwavering focus on good keeping abreast with the changes in borrowers,
Slide 6: Consistent support from the sponsor - Canara Bank
II • Consistent support from the sponsor - Canara Bank. • Expertise gained over 36 years in housing 1989 finance. • Eminent personalities with rich experience on the Board. • Quick, hassle free and customer friendly lending process. • Transparent and timely updation to stakeholders. 2019 • Risk base
Slide 7: Borrowings and credit ratings
Position as on 30/09/2024 Borrowings CARE ICRA IND Ra Term Loans (Long Term Loan) AAA/Stable AAA/Stable Term Loans (Short Term Loan) A1+ NHB Borrowings AAA/Stable Commercial Papers (CPs) A1+ A1+ Non-Convertible Debentures (NCDs) AAA/Stable AAA/Stable AA+/Stable Public Deposits AAA/Stable www.canfinh
Slide 8: Board of Directors
Chairman (Promoter) Managing Director & CEO Director (Promoter) Director (Independent) Director (Independent) Director (Independent) Director (Independent) Director (Independent Deputy Managing Director (w.e.f 29/04/2024) www.canfinhomes.com 7
Slide 9: Senior management team
Chief Financial Officer General Manager Company Secretary Total Exp: 14 Years Total Exp: 30 Years Total Exp: 21 Years Service in Can Fin - 1 Year Service in Can Fin – 30 Years Service in Can Fin – 1 Year Chief Compliance Officer Project Implementation Head Chief Risk Officer Total Exp: 34 Years Tota
Slide 10: Loan process: lead generation to disbursement
Lead Generation Through Website, Customer Referral, Direct marketing and DSA channel. Due Diligence CKYC-UIDAI linked verification; Bank account verification through PERFIOS; Field verification of residence, employment, property in each proposal; Online PAN verification; Online ITR verification; CER
Slide 11: Documentation, collection and monitoring
Documentation Pre-filled System Generated documents - ready for Execution. Storage of Loan Centralised Document Storage. Dockets Collection Through E -NACH, Salary deduction. Option for online Payment. Monitoring Data mining for EWS Monthly OTMS reports Cluster Risk Monitoring Reconciliation At bran
Slide 12: Our digital focus areas
Our digital focus areas: Providing Creating a digital Automation and Building robust personalized and financial services digitization of and secure digital seamless services to bouquet in processes to capabilities across our customers across collaboration with make things platforms to the country so
Slide 13: Q2 FY25 highlights
1. Loan Book reached Rs. 36591 Cr (+10 7. Gross NPA 0.88% & Net NPA 0.47%. % YoY) with a clientele base of 2.73 lakh. 8. The Salaried and Professional segment constitutes 71% of the 2. NII:Rs. 340 Cr, PBT: Rs.274 Cr and PAT: outstanding loan book as on Rs. 211 Cr. Sep 24. Housing forms 87% of the Lo
Slide 14: Year on Year and Sequential
* Amt in Crore Sl. Year on Year and Sequential Particulars No. Sep’24 (3m) Sep’23 (3m) Jun’24 (3m) 1 New Approvals 2617 2123 1969 2 Disbursements 2381 2019 1853 3 Outstanding Loan Book 36591 33359 35557 4 Net Interest Income 340 317 320 5 Operating Profit 288 270 280 6 ECL Provision 14 33 24 7 Profi
Slide 15: Key ratios - period ended
* Amt in Crore Sl. PERIOD ENDED Particulars No. Sep’24(3m) Sep’23(3m) Jun’24(3m) 1 Return on Avg Assets (%) 2.29% 1.86% 2.17% 2 Return on Avg Equity (%) 17.99% 15.96% 17.57% 3 Earning Per Share (Rs.) 15.88 11.87 14.99 4 Net Interest Margin (%) 3.75% 3.80% 3.57% 5 Yield on Loan Portfolio (%) 10.12% 1
Slide 16: Half-year Year on Year (As per IND AS)
* Amt in Crore Sl. Year on Year (As per IND AS) Particulars No. Sep’24 (6m) Sep’23 (6m) Growth% 1 New Approvals 4586 4195 9% 2 Disbursements 4233 3986 6% 3 Outstanding Loan Book 36591 33359 10% 4 Net Interest Income 660 602 10% 5 Operating Profit 567 478 19% 6 ECL Provision 38 46 -41% 7 Profit Befor
Slide 17: Key ratios - six months ended
* Amt in Crore Sl. PERIOD ENDED Particulars No. Sep’24(6m) Sep’23(6m) 1 Return on Avg Assets (%) 2.22% 1.78% 2 Return on Avg Equity (%) 17.49% 15.24% 3 Earning Per Share (Rs.) 30.88 25.65 4 Net Interest Margin (%) 3.65% 3.62% 5 Yield on Loan Portfolio (%) 10.12% 9.79% 6 Cost of borrowing (%) 7.56% 7
Slide 18: AUM by borrower category
AUM Q2FY 24 AUM Q2FY 25 1% 1% 14% 15% 27% 26% 3% 3% 55% 55% Sal - Govt Sal - Private Sal - PSU/Banks SENP Prof Sal - Govt Sal - Private Sal - PSU/Banks SENP Prof www.canfinhomes.com 17
Slide 19: AUM by product
AUM Q2FY24 AUM Q2FY25 2% 4% 2% 5% 5% 6% 9% 10% 77% 79% Housing Housing CRE Lap and Mort Top UP Others Housing Housing CRE Lap and Mort Top UP Others www.canfinhomes.com 18
Slide 20: AUM by purpose of loan
AUM Q2FY24 AUM Q2FY25 14% 15% 7% 8% 2% 2% 4% 4% 9% 64% 63% 8% Construction Flat Resale Rennov Mort+LAP+Top UP Others Construction Flat Resale Rennov Mort+LAP+Top UP Others *Others include Site loan, Loan against rent receivables, Loans for commercial property, Loans for children education, Personal
Slide 21: Disbursement and AUM by ticket size
Disbursement in H1 AUM 38% 33% 36% 31% 28% 28% 28% 26% 28% 26% 26% 22% 13% 13% 13% 12% 0 - 10L 10 - 20L 20 - 30L >30L 0 - 10L 10 - 20L 20 - 30L >30L FY24 FY25 Sep-23 Sep-24 www.canfinhomes.com 20
Slide 22: Quarterly growth trend
18% 14% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 -11% -9% -6% -22% Gr% www.canfinhomes.com 21
Slide 23: DSA sourcing
Amt in Crore FY23 FY24 Q1FY25 Q2FY25 Active DSA's 1463 1184 1310 1423 Total Disbursement 8947 8117 1853 2381 (Crores) Total DSA Sourced Amount(Crores) 7302 6669 1479 1919 % share of total business 82% 82% 80% 80% Share of Top 20 DSA's Amount(Crores) 1011 844 247 243 % share of total business 11% 10%
Slide 24: 72% of AUM sourced by DSA
87% 86% 85% 82% 80% 80% 80% 80% 80% 78% Q1 FY 23 Q2 FY 23 Q3 FY 23 Q4 FY 23 Q1 FY 24 Q2 FY 24 Q3 FY 24 Q4 FY 24 Q1 FY 25 Q2 FY 25 *72% of AUM sourced by DSA www.canfinhomes.com 23
Slide 25: Loan portfolio and branches by region
Branches Loan Portfolio 60% 72% 72% 16% 14% 13% 13% 11% 11% 4% 5% 2% 2% 2% 1% Central East North South West Central East North South West Q1FY 24 Q1FY 25 www.canfinhomes.com 24
Slide 26: Loan book movement by quarter
* Amt in Crore Opening Disbursement Amortization+ Closing Balance Run Off Balance(A) (B) Prepayment (D=A+B-C) E= C/A (C) Q1 FY 22 22126 894 799 22221 3.61% Q2 FY 22 22221 2208 845 23584 3.89% Q3 FY 22 23584 2472 965 25091 4.18% Q4 FY 22 25091 2730 1110 26711 4.50% Q1 FY 23 26711 1726 899 27538 3.53%
Slide 27: Category-wise product-wise distribution of loan book
CATEGORY-WISE PRODUCT-WISE DISTRIBUTION OF LOAN BOOK * Amt in Crore Sl. Sep - 23 Dec - 23 Mar - 24 Jun - 24 Sep - 24 Particulars No. 0/s Amt 0/s Amt 0/s Amt 0/s Amt 0/s Amt 1 Salaried & Professionals i) Housing Loans 22067 22442 22971 23245 23607 ii) Top-up Personal Loans 1020 1040 1076 1092 1121 ii
Slide 28: Funding mix
Funding Mix @ Sep 2023 (as %) Funding Mix @ Sep 2024 (as %) Deposits Deposits CP 1% CP 1% 7% 7% NCD NCD 16% 18% Banks Banks 57% NHB 60% NHB 19% 14% Total Borrowings – Rs. 30628 Crore Total Borrowings – Rs. 33790 Crore www.canfinhomes.com 27
Slide 29: Yield, cost of borrowing, spread and NIM trends
3.69% 9.84% 10.01% 10.12% 10.12% 9.93% 3.96% 3.48% 3.62% 3.57% 3.65% 10.07% 2.66% 7.35% 7.58% 7.40% 2.60% 2.54% 7.56% 2.28% 2.56% 7.32% 2.52% 7.32% Q1 FY 23-24 Q2 FY 23-24 Q3 FY 23-24 Q4 FY 23-24 Q1 FY 23-24 Q2 FY 24-25 Q1 FY 23-24 Q2 FY 23-24 Q3 FY 23-24 Q4 FY 23-24 Q1 FY 24-25 Q2 FY 24-25 www.canf
Slide 30: NPA amount and restructured accounts
* Amt in Crore 106 94 NPA Amount NPA% 96 93 Quarter Without Only Without Only 64 Restructur Restructur Restructur Restructur ed accts ed ed accts ed Q2FY24 190 64 0.57% 0.19% Q3FY24 213 96 0.62% 0.28% Q4FY24 193 93 0.55% 0.26% 219 226 213 190 193 Q1FY25 219 106 0.61% 0.29% Q2FY25 226 94 0.61% 0.25%
Slide 31: Asset classification and ECL stages
* Amt in Crore Provision as Balance as on Provision as Asset Classification ECL Stages per ECL 30 Sep 2024 per IRAC Model Standard Asset 1 32387 SMA 0 1 1977 142.91 190.16 SMA 1 2 1012 SMA 2 2 895 NPA 3 320 147.17 148.62 Total Portfolio 36.59 290.08 338.78 Undisbursed Loan Commitment 1539 5.66 Manag
Slide 32: Gross NPA, Net NPA and provision held
Gross NPA & Net NPA (%) Provision held * Amt in Crore 0.91 0.91 0.88 34 34 0.82 34 0.76 34 34 0.49 0.49 0.47 151 149 0.43 0.42 141 139 112 Q2 FY 23-24 Q3 FY 23-24 Q4 FY 23-24 Q1 FY 24-25 Q2 FY 24-25 Q2 FY 23- 24 Q3 FY 23- 24 Q4 FY 23- 24 Q1 FY 24- 25 Q2 FY 24- 25 Provision for NPA Management Overlay
Slide 33: Provision coverage as % of GNPA
* Amt in Crore H1FY24 As % of H1FY25 As % of GNPA GNPA Gross NPA 254.45 320.26 A. ECL Provision (Stage 3) 112.01 44% 148.63 46% B. Management Overlay 34.28 34.28 Total Provision available 146.29 57% 182.91 57% (A+B) C. Prov for Restructured 67.69 50.04 Pool Total Provision available 213.98 84% 232.9
Slide 34: Shareholding category as on 30.09.2024
As on 30.09.2024 SI No. Category shareholding as % 8.28 9.46 29.99 1 Promoter 29.99 11.68 2 Mutual Funds 21.69 3 Individual 18.89 4 Foreign Corporate Bodies 11.68 18.89 5 Bodies Corporate 9.46 21.69 6 Others 8.28 7 Grand Total 100.00 Promoter Mutual Funds Individual Foreign Corporate Bodies Bodies C
Slide 35: Branch offices by state
(219 BRANCH OFFICES) • Odisha – Bhubaneshwar (2), • Punjab – Jalandhar Berhampur, Jharsuguda, • Telangana – Hyderabad (13 Cuttack branches), Siddipet, Warangal, • Chandigarh Karimnagar, Khammam, • Bihar – Patna, Darbhanga Mancherial, Nizamabad • Rajasthan – Alwar, Jaipur, Mansarovar, Kota, Udaipur,
Slide 36: Forward-looking statements disclaimer
The forward looking statements and projections, if any, contained in this presentation are predictions and involve known and unknown risks, uncertainties and other factors including the future changes or developments, the competitive environment, ability to implement the strategies and initiatives,