INDOSTAR CAPITAL FINANCE LIMITED Q2 & H1FY20 Results Update 7 - PowerPoint PPT Presentation

INDOSTAR CAPITAL FINANCE LIMITED Q2 & H1FY20 Results Update 7 November 2019

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 purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the Presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither the Company nor its affiliates, advisors or representatives are under an obligation to update, revise or affirm. You acknowledge and agree that the Company and/or its affiliated companies and/or their respective employees and/or agents have no responsibility or liability (express or implied) whatsoever and howsoever arising (including, without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this Presentation and neither the Company, its affiliated companies nor their respective employees or agents accepts any liability for any error, omission or misstatement, negligent or otherwise, in this Presentation and any liability in respect of the Presentation or any inaccuracy therein or omission therefrom which might otherwise arise is hereby expressly disclaimed. Certain statements contained in this Presentation may be statements of the Company’s beliefs, plans and expectations about the future and other forward looking statements that are based on management’s current expectations or beliefs as well as a number of assumptions about the Company’s operations and factors beyond the Company’s control or third party sources and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward looking statements. Forward looking statements contained in this Presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. There is no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward looking statements, which speak only as of the date of this Presentation. Note : The figures for the previous period have been adjusted, wherever considered necessary to conform with the financial reporting requirements. 1

Q2FY20 performance : Key Highlights ▪ Strong retail franchise – share in AUM at 66% up 29% YoY ▪ Net Revenue from Operations ₹ 2,197 mn, +19% YoY Healthy Business profile ▪ Cost Income ratio 36.4%, reduced 120 bps YoY Pre- provision Operating Profit ₹ 1,397 mn, +22% YoY ▪ ▪ Cash & Equivalents ₹ 10,270 mn, ~14% of borrowings Comfortable Liquidity position ▪ Positive ALM across all buckets ▪ CRAR 25.7% ; Tier 1 CRAR 23.8 % ▪ Strong capitalisation, Low leverage Low Leverage; Average Assets : Equity ratio 3.6x ▪ Long Term Credit Ratings reaffirmed at AA- ▪ Innovative partnership with ICICI Bank for CV Financing Poised for growth in CV Financing ▪ Q2FY20 sourcing ₹ 1,653 mn 2 Commercial Vehicle Finance: CV Finance

National Footprint • Well balanced distribution network • Integration & consolidation underway 322 branches across 18 states * Some branches have multiple operating segments 322 322 322 159 155 305 305 305 129 142 114 46 55 55 55 55 10 10 10 10 10 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 SME Finance Housing Finance CV Finance Retail Lending - Employee Base 2,490 2,356 2,156 1,545 1,485 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 3

Q2 & H1FY20: Consolidated Profit & Loss Statement Particulars (₹ mn) Q2FY20 Q1 FY20 QoQ % Q2FY19 YOY % H1FY20 H1FY19 YoY % Revenue from Operations 4,239 4,191 1% 3,245 31% 8,430 5,588 51% Interest Expenses (2,042) (2,253) -9% (1,404) 45% (4,295) (2,523) 70% Net Revenue from Operations 2,197 1,937 13% 1,841 19% 4,134 3,065 35% People Costs 472 476 -1% 456 3% 948 779 22% Operating Expenses 328 269 22% 235 39% 597 453 32% Pre-provision Operating Profit 1,397 1,192 17% 1,149 22% 2,590 1,833 41% Credit Costs 722 608 19% 111 553% 1,330 188 609% One off Charges - - n.a. 47 n.a. - 139 -100% Profit before Tax 675 585 15% 992 -32% 1,260 1,506 -16% Tax 181 114 59% 352 -48% 295 551 -47% Net Profit 494 471 5% 640 -23% 965 955 1% Key Metrics Q2FY20 Q1 FY20 Q2FY19 H1FY20 H1FY19 Yield 15.4% 14.4% 15.0% 14.8% 14.1% Cost of Borrowings 10.5% 10.3% 9.7% 10.4% 9.4% Spread 4.9% 4.1% 5.3% 4.4% 4.8% NIM 8.0% 6.7% 8.5% 7.3% 7.8% Cost to Income 36.4% 38.5% 37.6% 37.4% 40.2% 4

Consolidated Balance Sheet Particulars (₹ mn) Sep-19 Jun-19 QoQ % Sep-18 YoY % Equity 31,022 30,591 1% 28,721 8% Borrowings 76,246 80,863 -6% 58,032 31% Others 320 1,159 -72% 971 -67% Total Liabilities 107,588 112,613 -4% 87,723 23% Loan Assets 90,590 101,568 -11% 77,665 17% Treasury Assets 13,121 7,109 85% 9,330 41% Fixed Assets & Goodwill 3,877 3,935 -1% 727 433% Total Assets 107,588 112,613 -4% 87,723 23% Key Ratios Q2FY20 Q1 FY20 Q2FY19 * ROAA 1.8% 1.6% 3.0% Leverage 3.6x 3.8x 3.0x * ROAE 6.4% 6.2% 9.0% * Annualised 5

Q2FY20: Business Segment Performance Corporate SME Housing ^ ^ Particulars (₹ mn) CV Finance Consolidated Lending Finance Finance Revenue from Operations 1,494 1,681 679 259 4,239 Interest Expenses (789) (643) (314) (124) (2,042) Net Interest Income 704 1,038 365 134 2,197 People Costs 42 225 47 60 472 Operating Expenses 2 144 32 25 328 Pre-provision Operating Profit 661 670 287 49 1,397 Credit Costs * 581 42 98 2 722 Profit Before Tax 81 628 189 47 675 ^ ^ Corporate SME Housing Particulars (₹ mn) CV Finance Consolidated Lending Finance Finance # Equity 10,866 9,912 4,215 1,835 31,022 Borrowings 25,289 27,116 9,810 4,272 76,246 Others 112 102 43 19 320 Total Liabilities 36,267 37,130 14,069 6,126 107,588 Loan Assets 36,267 34,128 14,069 6,126 90,590 Treasury Assets - - - - 13,121 Fixed Assets & Goodwill - 3,002 - - 3,877 Total Assets 36,267 37,130 14,069 6,126 107,588 * Credit costs are expected loss provisions computed under IndAS plus write offs # Allocated ^ Total of Segmental numbers does not tally with consolidated figures as costs of common functions are not shown under lending segments 6