Iifl Finance Limited · NSE:IIFL
Iifl Finance — Q2 FY25 Earnings Presentation
57 slides from Iifl Finance's earnings presentation, Oct 24, 2024
Slide 1: Exchange filing cover letter
October 23, 2024 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot C/1, G Block, Dalal Street, Bandra - Kurla Complex, Bandra (E), Mumbai 400 001. Mumbai 400 051. BSE Sc
Slide 2: Press Release: IIFL Finance Q2FY25 Results update
Annexure 1 IIFL Finance Limited Press Release For immediate publication Mumbai, India October 23, 2024 IIFL Finance Q2FY25 Results update IIFL Finance Q2FY25 standalone net loss at Rs. 441Cr, consolidated net loss at Rs. 93Cr For the quarter ended September 30, 2024, the Company reported net loss af
Slide 3: Management commentary on results
1 The Company had certain AIF investments, due to mature in June 2024, for which it preferred in-specie distribution of assets (i.e.: debentures of underlying companies) in lieu of its AIF investment. Subsequently, these debentures were assigned to an ARC. The book value of Security Receipts (SRs),
Slide 4: Business segment review
Total CRAR2 stood at 26.3% as at September 30, 2024, as against minimum regulatory requirement of 15% supported by the capital raised during the quarter. The total presence of branches stood at 4,810 as at the end of Q2FY25 compared to 4,774 branches last quarter, spanning the length and breadth of
Slide 5: About IIFL
About IIFL IIFL Group is one of the leading players in the Indian financial services space. Prior to the Composite Scheme of Arrangement (effective May 2019), IIFL Finance Limited (Erstwhile “IIFL Holdings Limited”) (Bloomberg Code: IIFL IN, NSE: IIFL, BSE: IIFL) was engaged in the business of finan
Slide 6: Performance review
Annexure 2 Performance review Quarter ended Sept, 2024 Bloomberg: IIFL IN (Q2FY25) October 23, 2024
Slide 7: Agenda
IIFL Finance Consolidated – Q2FY25 update 3 – 14 IIFL Finance Standalone – Q2FY25 update 15 – 23 IIFL Home Finance – Q2FY25 update 24 – 31 IIFL Samasta Finance – Q2FY25 update 32 – 40 Corporate Information 41 – 50 2
Slide 8: IIFL Finance (Consolidated)
IIFL FINANCE (CONSOLIDATED)
Slide 9: Consolidated: Q2FY25 and H1FY25 Results snapshot
IIFL Finance (Consolidated): Q2FY25 and H1FY25 Results snapshot ₹ Cr Q2FY25 Q1FY25 Q-o-Q Q2FY24 Y-o-Y H1FY25 H1FY24 Y-o-Y Loan AUM 66,964 69,610 (4%) 73,066 (8%) 66,964 73,066 (8%) PPOP1 731.6 647.4 13% 922.1 (21%) 1,379.0 1,714.1 (20%) PBT (before exceptional items) 446.8 436.2 2% 683.5 (35%) 883.0
Slide 10: Consolidated: Q2FY25 and H1FY25 Results
IIFL Finance (Consolidated): Q2FY25 and H1FY25 Results ₹ Cr Q2FY25 Q1FY25 Q-o-Q Q2FY24 Y-o-Y H1FY25 H1FY24 Y-o-Y Interest income 1,974.4 2,046.6 (4%) 1,932.9 2% 4,021.0 3,758.1 7% Interest expense (978.8) (1,034.0) (5%) (932.2) 5% (2,012.7) (1,820.0) 11% Net interest income 995.6 1,012.6 (2%) 1,000.
Slide 11: Consolidated: Income Analysis
IIFL Finance (Consolidated): Income Analysis ₹ Cr Q2FY25 Q1FY25 Q-o-Q Q2FY24 Y-o-Y H1FY25 H1FY24 Y-o-Y Loan Book (Ind AS Balance sheet) 44,527 45,470 (2%) 44,061 1% 44,527 45,470 (2%) Assigned assets 13,948 14,609 (5%) 18,429 (24%) 13,948 14,609 (5%) Co-lending book 8,489 9,532 (11%) 10,576 (20%) 8,
Slide 12: Consolidated balance sheet as at September 30, 2024
Consolidated balance sheet as at September 30, 2024 ASSETS (₹ Cr) LIABILITIES AND EQUITY (₹ Cr) 1 Financial Assets 1 Financial Liabilities (a) Cash and Bank Balances 3,782 (a) Payables 236 (b) Receivables 92 (b) Borrowings (c) Loan Assets 44,715 - Debt Securities 7,895 - Borrowings (Other than Debt
Slide 13: Consolidated: Key highlights
IIFL Finance (Consolidated): Key highlights AUM (₹ Cr) Profit after tax2 (₹ Cr) Return on assets/equity Return on Assets Return on Equity 78,960 64,638 66,964 1,974 20.6% 19.9% 1,608 18.4% 51,210 15.3% 37,951 44,688 1,188 11.3% 3.4% 761 3.3% 503 2.7% 2.3% 245 1.5% 2.0% 0.8% FY20 FY21 FY22 FY23 FY24
Slide 14: Consolidated: Funding mix
IIFL Finance (Consolidated): Funding mix Borrowing (₹ Cr) Borrowing mix Cost of borrowing 6% 5% 8% 4% 6% 17% 18% 17% 17% 16% 45,993 25% 24% 23% 25% 25% 9.2% 42,210 9.1% 9.1% 9.1% 41,416 39,777 9.0% 39,137 53% 53% 52% 55% 52% Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2
Slide 15: Adequate liquidity, well covered to meet obligations
Adequate liquidity, well covered to meet obligations and sustain growth (₹ Cr) Asset Liability Match (ALM) - Surplus across all buckets Well covered Debt Repayment Schedule 59,385 14,883 13,815 12,990 43,360 59,385 11,904 10,577 Interest 38,345 9,634 9,059 Free Cash + 7,403 30,521 undrawn lines = 6,
Slide 16: Strategic shifts to retail, secured credit
Over the last 5 years, we have made strategic shifts to focus on providing retail, secured credit to small businesses and homes Mix% Mix% Loan AUM (₹ Cr) FY20 FY21 FY22 FY23 FY24 Q2FY24 Q1FY25 Q2FY25 Q0Q % YoY % Yield FY20 Q2FY25 Home Loan 12,443 14,439 17,727 21,800 27,438 24,009 28,089 29,116 4% 2
Slide 17: NPAs and asset quality by segment
NPAs impacted by microfinance industry trends, continues to be better than the peers GNPA % Q2FY25 Q1FY25 QoQ Q2FY24 YoY GNPA% NNPA% Home Loan 1.25% 1.29% (0.04%) 1.74% (0.49%) 3.15% Gold Loan 2.40% 2.93% (0.53%) 1.16% 1.24% 2.32% 2.35% Loan against property 3.52% 3.59% (0.07%) 2.58% 0.94% 2.04% 1.9
Slide 18: Listed holding NBFC with 2 major subsidiaries
IIFL Finance is listed holding NBFC with 2 major subsidiaries for housing & Micro-finance IIFL Finance (Listed) 80% 99.6% IIFL Home IIFL Finance IIFL Samasta Finance Standalone Finance Business: Business: Business: Home loans, Home Gold loans, Unsecured Microfinance, Equity (Secured MSME loans, Home
Slide 19: Reconciliation of consolidated results with group entities
Reconciliation of reported consolidated results with group entities IIFL Finance IIFL Home IIFL Samasta Intergroup IIFL Finance Q2FY25 (₹ Cr) Standalone Finance* Finance adjustments Consolidated Interest income 672.2 699.9 543.3 59.0 1974.4 Interest expense (403.0) (360.2) (216.6) 1.0 (978.8) Net in
Slide 20: IIFL Finance (Standalone)
IIFL FINANCE IIFL FINANCE (STANDALONE)
Slide 21: Standalone: Q2FY25 and H1FY25 Results
IIFL Finance (Standalone): Q2FY25 and H1FY25 Results ₹ Cr Q2FY25 Q1FY25 Q-o-Q Q2FY24 Y-o-Y H1FY25 H1FY24 Y-o-Y Interest income 672.2 670.6 0% 720.1 (7%) 1,342.8 1,434.9 (6%) Interest expense (403.0) (429.8) (6%) (407.5) (1%) (832.8) (795.3) 5% Net interest income 269.2 240.9 12% 312.6 (14%) 510.1 63
Slide 22: Standalone: Key highlights
IIFL Finance (Standalone): Key highlights AUM (₹ Cr) Profit after tax2 (₹ Cr) Return on assets/equity Return on Assets Return on Equity 29,250 745 806 25,573 21,109 585 19,199 343 3.3% 3.5% 2.3% 16,057 17,382 1.5% 149 11.1% 0.8% 18.5% 17.6% 8.8% 4.1% (3.7%) (464) (15.7%) FY20 FY21 FY22 FY23 FY24 H1F
Slide 23: Standalone: Key business units
IIFL Finance (Standalone): Key business units ATS Loan AUM (₹ Cr) FY20 FY21 FY22 FY23 FY24 Q2FY24 Q1FY25 Q2FY25 Q0Q % YoY % Yield (₹ lakhs) Gold loan 9,125 13,149 16,228 20,733 23,354 23,690 14,727 10,797 (27%) (54%) 18.50% 0.7 Digital loan 2,923 2,025 1,884 2,512 4,302 3,539 4,610 5,419 18% 53% 20.
Slide 24: Standalone: Business update
IIFL Finance (Standalone): Business update AUM mix Spread Average ticket size1 (₹ lakhs) 3% 3% 3% 2% 1% 2% 11% 7% 4% 4% 20.6% 22% 18% 15% 20.1% 18.7% 19.7% 18.4% 19.1% 9% 10% 31% 1.08 1.09 11% 1% 18% 0.89 0.92 0.95 0.98 1% 10.5% 10.6% 11.2% 9.4% 9.4% 10.0% 68% 77% 81% 80% 57% 62% 9.6% 9.3% 9.1% 9.0%
Slide 25: Standalone: Funding mix
IIFL Finance (Standalone): Funding mix Borrowing (₹ Cr) Borrowing mix Cost of borrowing 12% 11% 15% 4% 8% Rating: AA/Stable by CRISIL, ICRA & Brickwork and 9% 8% 9% 10% 8% AA/RWN by India Rating, 19,609 30% 31% 17,694 30% 25% 25% 16,297 16,233 9.4% 14,928 9.2% 9.2% 58% 9.1% 50% 54% 51% 53% 9.0% Q2 F
Slide 26: Standalone: Liquidity update
IIFL Finance (Standalone): Liquidity update (₹ Cr) Asset Liability Match (ALM) - Surplus across all buckets Well covered Debt Repayment Schedule 24,011 17,364 5,234 24,011 4,798 4,544 16,701 4,301 3,651 15,716 3,414 Interest 10,339 3,254 12,995 Free Cash + 2,648 2,382 8,191 undrawn lines = 2,022 6,3
Slide 27: Standalone: Competitive edge
IIFL Finance (Standalone): Competitive edge Strong visibility & Own network & people Digital technology brand recall • Aggressive investment in brand • Industry first proprietary tablet • Over 2,745 dedicated gold loan awareness, visibility and based fully digitized processes for branches spread acr
Slide 28: Update on security receipts portfolio
Update on security receipts portfolio ➢ Outstanding Security receipts held by IIFL Finance ₹3,581 Cr, provision of ₹612 Cr ➢ 11% of the portfolio comprises of retail pool of unsecured business and personal loan assets Asset class Recovery of 100%+ in 70% of pool assets Mumbai & Delhi NCR contribute
Slide 29: IIFL Home Finance
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Slide 30: IIFL Home Finance: Q2FY25 and H1FY25 Results
IIFL Home Finance: Q2FY25 and H1FY25 Results ₹ Cr Q2FY25 Q1FY25 Q-o-Q Q2FY24 Y-o-Y H1FY25 H1FY24 Y-o-Y Interest income 701.7 725.6 (3%) 637.1 10% 1,427.3 1,252.2 14% Interest expense (360.2) (370.3) (3%) (320.3) 12% (730.5) (641.9) 14% Net interest income 341.5 355.3 (4%) 316.9 8% 696.8 610.3 14% No
Slide 31: IIFL Home Finance: Key highlights
IIFL Home Finance: Key highlights AUM (₹ Cr) Profit after tax (₹ Cr) Return on assets/equity Return on Assets Return on Equity 37,098 35,499 1,017 28,512 24.9% 23,617 768 20.3% 16.9% 16.5% 18,495 20,694 593 17.6% 553 13.8% 401 245 3.6% 3.9% 4.4% 4.5% 1.8% 2.7% FY20 FY21 FY22 FY23 FY24 H1FY25 FY20 FY
Slide 32: IIFL Home Finance: Key business units
IIFL Home Finance: Key business units ATS Loan AUM (₹ Cr) FY20 FY21 FY22 FY23 FY24 Q2FY24 Q1FY25 Q2FY25 Q0Q % YoY % Yield1 (₹ lakhs) Affordable home loan 12,443 14,439 17,727 21,800 27,438 24,009 28,089 29,116 4% 21% 11.09% 15.86 Home equity (Secured 4,882 5,381 5,346 5,905 7,250 6,204 7,071 7,194 2
Slide 33: IIFL Home Finance: Business update
IIFL Home Finance: Business update AUM mix Spread Average ticket size1 (₹ lakhs) 6% 4% 2% 3% 2% 2% 20% 19% 11.6% 11.6% 11.8% 12.5% 12.5% 26% 23% 21% 11.2% 24.39 26% 9.1% 8.3% 8.3% 20.36 20.48 8.4% 7.9% 8.0% 15.60 15.15 4.2% 4.2% 14.26 67% 70% 75% 76% 77% 78% 3.2% 3.3% 3.8% 2.5% FY20 FY21 FY22 FY23 F
Slide 34: IIFL Home Finance: Funding mix
IIFL Home Finance: Funding mix Borrowing (₹ Cr) Borrowing mix Cost of borrowing 1% 1% 3% 5% 5% Rating: AA/Stable by CRISIL, ICRA, AA/ RWN India 24% 27% 27% Rating, AA/Negative by Brickwork 28% 27% 17,481 17,054 27% 16,724 26% 24% 23% 24% 16,238 8.3% 8.3% 8.3% 8.3% 15,409 47% 46% 46% 44% 44% 8.2% Q2
Slide 35: IIFL Home Finance: Liquidity update
IIFL Home Finance: Liquidity update (₹ Cr) Asset Liability Match (ALM) - Surplus across all buckets Well covered Debt Repayment Schedule 27,640 27,640 4,512 4,770 16,246 4,249 3,699 3,421 11,961 3,076 Interest Free Cash + 2,950 undrawn lines = 2,358 7,472 ₹1,569 Cr 2,114 6,161 6,756 3,840 1,126 5,30
Slide 36: IIFL Home Finance: Competitive edge
IIFL Home Finance: Competitive edge First Time Home Buyers Native and Scalable India’s Leading AHFC from EWS & LIG* segment Technology Stack • One of the fastest growing AHFCs • Primary focus on offering • Optimised processes with end-to- in India led by a seasoned affordable home loans in Tier II-
Slide 37: IIFL Samasta Finance
IIFL FINANCE IIFL SAMASTA FINANCE
Slide 38: IIFL Samasta Finance: Q2FY25 and H1FY25 Results
IIFL Samasta Finance: Q2FY25 and H1FY25 Results ₹ Cr Q2FY25 Q1FY25 Q-o-Q Q2FY24 Y-o-Y H1FY25 H1FY24 Y-o-Y Interest income 543.3 584.2 (7%) 636.0 (15%) 1,127.5 1,034.5 9% Interest expense (216.6) (234.9) (8%) (320.3) (32%) (451.5) (412.8) 9% Net interest income 326.8 349.3 (6%) 315.7 3% 676.1 621.7 9
Slide 39: IIFL Samasta Finance: Key highlights
IIFL Samasta Finance: Key highlights AUM (₹ Cr) Profit after tax (₹ Cr) Return on assets/equity Return on Assets Return on Equity 14,211 12,483 503 10,552 29.4% 31.5% 6,484 15.3% 4,796 3,400 128 153 11.8% 11.4% 5.0% 107 4.8% 6.3% 66 51 2.9% 1.9% 0.9% 1.7% FY20 FY21 FY22 FY23 FY24 H1FY25 FY20 FY21 FY
Slide 40: IIFL Samasta Finance: Key business units
IIFL Samasta Finance: Key business units 1 ATS1 Loan AUM (₹ Cr) FY20 FY21 FY22 FY23 FY24 Q2Y24 Q1FY25 Q2FY25 Q0Q % YoY % Yield (₹ lakhs) Microfinance 3,289 4,440 5,821 9,072 11,891 10,359 10,827 10,102 (7%) -2% 24.45% 0.45 Home equity (Secured 21 58 329 767 1,118 890 1,126 1,187 5% 33% 21.69% 4.53 b
Slide 41: IIFL Samasta Finance: Business update
IIFL Samasta Finance: Business update AUM mix Spread1 Average ticket size1 (₹ lakhs) 0% 4% 2% 3% 3% 4% 2% 3% 4% 23.8% 24.4% 24.2% 2% 5% 6% 22.6% 22.4% 21.9% 0.50 1% 1% 5% 7% 8% 0.48 10% 0.44 13.8% 13.8% 13.8% 0.39 97% 11.9% 12.0% 11.9% 0.33 93% 90% 86% 84% 81% 0.28 10.7% 10.4% 10.0% 10.0% 10.6% 10.5
Slide 42: IIFL Samasta Finance: Funding mix
IIFL Samasta Finance: Funding mix Borrowing (₹ Cr) Borrowing mix Cost of borrowing 1% 3% 3% 4% 5% Rating: AA-/Stable by CRISIL AA/RWN by India 19% 16% 16% 9% 8% Rating AA/RWN by ACUITE 8,903 17% 19% 11% 17% 17% 8,072 8,277 8,130 7,485 69% 71% 67% 10.6% 10.6% 10.6% 64% 65% 10.5% 10.5% Q2 FY24 Q3 FY24
Slide 43: IIFL Samasta Finance: Liquidity update
IIFL Samasta Finance: Liquidity update (₹ Cr) Asset Liability Match (ALM) - Surplus across all buckets Well covered Debt Repayment Schedule 9,750 9,683 9,842 9,842 4,879 4,505 4,197 3,903 6,807 7,332 3,505 6,850 3,143 Interest 2,855 4,421 2,397 Free Cash + 4,545 1,957 undrawn lines = 3,012 1,524 2,5
Slide 44: IIFL Samasta Finance: Competitive edge
IIFL Samasta Finance: Competitive edge Maintaining High Asset Balanced portfolio Strong Technology Focus Quality • Extensive focus on implementing • Industry leading asset quality • Growing Microfinance Portfolio technology across processes and across dpd buckets; Underwriting with balanced mix of N
Slide 45: Update on compliance of NBFC-MFI regulations
Update on compliance of NBFC-MFI regulations • Risk based pricing implemented Pricing Policy • Board approved policy in place with defined interest rate cap • Calculation of obligation automated using bureau data Assessment of Income & • Combination of bureau data and internal validations in place t
Slide 46: Corporate Information
IIFL FINANCE | way, CORPORATE INFORMATION
Slide 47: Uniquely placed to dominate non banking retail lending
Uniquely placed to dominate non banking retail lending Retail Lending Strong collateral or cash flow backed loans, in segments with robust growth potential Phygital Partnerships Physical Digital Banks Fintechs Network of 4,810 Innovative digital Unique capability to Harnessing fintech branches help
Slide 48: Distinguished board of directors in the company & its subsidiaries
Distinguished board of directors in the company & its subsidiaries A K Purwar Chairman & Non- Executive Director Former Chairman, SBI Govinda Rajulu Srinivasan Sridhar Kalengada Nirmal Jain* R Venkataraman* Chintala Managing Director Chairman & Non- Mandanna Nanaiah Joint Managing Director Chairman
Slide 49: Marquee global investors and shareholding pattern
Since inception, marquee global investors have reposed faith in our business & management Shareholding Pattern % holding Promoters 24.9 Institutional Investors 50.5 (Formerly CDC Group) Fairfax 15.2 2010 2016 Capital Group 7.1 Bank Muscat India Fund 3.3 Vanguard 3.0 Nomura 2.4 2007 2011 2022 Ward Fe
Slide 50: Experienced senior management
Experienced senior management IIFL Finance IIFL Home Finance IIFL Samasta Finance Kapish Jain N Venkatesh Chartered Accountant, Cost Monu Ratra Strategic leadership Accountant and Company Qualified architect and MBA Program in microfinance at Secretary Harvard Group Chief Financial Officer ED & CEO
Slide 51: Environment, Social & Governance - Environment
Environment, Social & Governance - Environment Adopting environmentally conscious solutions in our business initiatives as well IIFL has signed a US$ 68 million Pioneered Green Building concept in loan with Asian Development Bank (ADB) to partnership with housing developers improve funding to afford
Slide 52: Environment, Social & Governance - Social
Environment, Social & Governance - Social IIFL is firmly committed to support economic activity and financial inclusion through its loan offerings while adapting to changes in the external environment ▪ 75% of the branches are located in non-metros, semi-urban and rural ▪ 84.37% of the Unsecured MSM
Slide 53: Environment, Social & Governance - Social (CSR)
Environment, Social & Governance - Social CSR projects continue with creative use of technology Smart Shaala – Rajasthan (3 Districts) Supporting Education of children and Youths - Maharashtra ▪ IIFL Foundation, has implemented the biggest TV based learning ▪ A programme to train students/youths for
Slide 54: Environment, Social & Governance - Governance
Environment, Social & Governance - Governance Establishing vision, mission and values and determining, reviewing the goals and policies of the Company from time to time Promote sound corporate governance Corporate policies and guidelines: Board Diversity practices, ethical standards, and compliance
Slide 55: Our ESG Impact
Our ESG Impact 50 Note: For more refer our Sustainability report – click here
Slide 56: Link to databook
Link to databook Data reported across previous quarters is now continued to be reported in a Data Book, maintained in an excel format on our website. The Link for the data book is hosted below. Click here to download databook Click here to download databook 51
Slide 57: Thank you
Thank you Published in October 2024 IIFL Finance Ltd. All rights reserved. Regd. Off: IIFL House, Sun Infotech Park, Road No. 16V, Plot No.B-23, Thane Industrial Area, Wagle Estate, Thane – 400604. This report is for information purposes only and does not construe to be any investment, legal or taxa