#1IndiaShelter Home Loans Investor Presentation Q3FY24 India Shelter Finance Corporation Limited 田#2Safe Harbor IndiaShelter Home Loans This presentation and the accompanying slides ("Presentation"), which have been prepared by India Shelter Finance Corporation Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Forward looking statements concerning the Company's future business prospects and business profitability are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of the forward-looking statements become materially incorrect in future or update any forward-looking statements made from time to time by or on behalf of the Company. 2#3Key Highlights - Q3FY24 AUM ROA Rs. Crore 5,609 8% QoQ 42% YOY 4.7% Disbursement Rs. Crore 679 6% QOQ 36% YOY ROE 13.9% PAT Rs. Crore 62 Gross Stage 3 3% QoQ 55% YOY 1.2% میدا را 20 BPS QOQ 109 BPS YOY IndiaShelter Home Loans SHELTER RPORATION LTD CEREMONY NSE IndiaShelter Home Loans 10:0 atulatic NSE NSE 3#4Executive Summary - Q3FY24 Business Metrics & Expansion Operations • Delivered AUM growth of 42% YoY to Rs. 5,609 Cr . • Portfolio LTV maintained at 51%, ATS continues to be at Rs. 10 Lacs Geographic presence stood at 215 locations as of 31st December'23 The company continues to deepen its presence by adding 12 new branches • Continues to maintain strong focus on leveraging tech to improve operations, onboarding and customer experience Continues to focus on digital operations, company now processes 92% digital collections, 98% e-signing of applications Liquidity & Cost of Borrowing Operating Efficiencies Asset Quality Profitability • • • • • • • • • In Q3, cost of funds was maintained at 8.8% despite rising interest rate market Comfortable liquidity position, liquidity buffer stood at Rs. 1,488 Crs as of 31st December 2023 Net Income grew by 47% YoY to Rs. 145 Crs in Q3FY24 as against Rs. 98 Crs in Q3FY23 In Q3, Opex to AUM improved to 4.4% from 4.8% in Q3FY23 In Q3, Cost to Income improved to 41.1% from 46.3% in Q3FY23 Login to Disbursement TAT of 6 days Gross Stage 3 and Net Stage 3 stood at 1.2% and 0.9% as of 31st December 2023 as against 2.3% and 1.8% as of 31st December 2022 30+ DPD stood at 3.5% as of 31st December 2023 as against 3.5% as of 31st December 2022 Credit Cost for the quarter stable at 0.3%. Profit after tax grew by 55% YoY to Rs. 62 Crs in Q3FY24 as against Rs. 40 Crs in Q3FY23 In Q3, the company delivered annualized ROA of 4.7% as against 4.2% in Q3FY23 In Q3, the company delivered annualized ROE of 13.9% as against 13.8% in Q3FY23 IndiaShelter Home Loans 4#5IndiaShelter Home Loans | About the Company Business Update Tech, Credit & Risk Financials ESG India Shelter Finance Corporation Limited#6Who we are IndiaShelter Home Loans What we do India Shelter provides affordable home loans and loan against property in Tier 2 and 3 geographies in India. Focus Segment Provides home loans to customers from low-and middle-income segments who are building or buying their first homes. Granular Portfolio with Pan India presence India Shelter has strong distribution moat with its Pan-India network in 15 states via 215 branches and maintains a granular portfolio with ATS of Rs. 10 Lacs ~ Deep Vintage Founded in 2010, India Shelter has a 14-year vintage that results in deep understanding of the segment Corporate Governance Strong focus on Corporate Governance, led by diverse Board with extensive experience in various facets of Banking and Finance Experienced Team Company is being run by experienced professional management team backed by marquee investors Tech enabled Underwriting & Risk Tech backed and tested underwriting and risk management which has remained robust through business cycles Focus on Underserved Customer Base AUM Split by Borrower Type (9M'FY24), % 70% First Time Mortgage Borrowers 98% Women Applicant 90% Tier II & Tier III 71% Self- Employed 76% LIG + MIG 6#7Growth Journey IndiaShelter Home Loans AUM (Rs. Crores) 47% CAGR (FY14-9MFY24) Commenced operations from Rajasthan First Investment by Sequoia ICRA credit rating of BB+ (stable) Expanded to 5 states Investment from nexus venture partners Presence in 7 States Presence in AUM crosses Rs. 500 crs 8 states 1,520 AUM crosses Rs. 100 crs AUM crosses Rs. 200 crs Investment from WESTBRIDGE CAPITAL 399 1,178 801 548 ICRA: Upgraded to A- (Positive) Opened 1st branch in South AUM crosses Rs. 1,000 crs ICRA: Upgraded to A (Stable) Presence in 12 states Presence in 15 States Crossed 100 Branches PAT crosses Rs. 100 crs Acquires majority stake WESTBRIDGE CAPITAL 3,073 CARE: Upgraded to A+ (Positive) 4,359 AUM crosses Rs. 5,000 crs Listed on BSE, NSE 5,609 2,199 228 4 21 58 117 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 9MFY24 7#8Continuous Growth With Focus On Fundamentals No. of States 15 FY 23 12 FY 19 No. of Branches 81 FY 19 183 FY 23 2.2x Disbursement (INR Cr) 566 FY 19 PAT (INR Cr) 155 FY 23 Opex/ AUM 4.9% ROE FY 23 30 FY 19 5.2x 7.8% FY 19 4.4% FY 19 1,964 FY 23 3.5x AUM (INR Cr) IndiaShelter Home Loans 4,359 FY 23 1.178 FY 19 3.7x 13.4% GNPA FY 23 1.1% FY 23 1.4% FY 19 8#9Key Success Factors Extensive, Diversified, Phygital 3 Distribution having Pan India presence Curated In-house Processes Enabling Robust Asset Quality across Cycles 4 IndiaShelter Home Loans 5 Professional Management Guided by Board Comprising of Industry Veterans Technology Driven Company 2 with Scalable Model 6 Strong Focus on Governance IndiaShelter Home Loans 14-yrs Vintage having Deep Understanding of Customer Segment and Micro-market 1 7 Diversified, Robust Liabilities Franchisee 9#10Experienced Board with Industry Veterans Chairman Sudhin Choksey Ex-MD Gruh Finance Parveen Gupta Ex-MD SBI 35+ yrs of BFSI experience Nominee Director Sumir Chadha Co-Founder WestBridge Independent Directors Rachna Dixit Ex-Regional Director RBI Nominee Directors Shailesh Mehta Ex-Chairman Providian Ajay Jha Savita Mahajan Ex-Finance Secretary of India Ex-Dean ISB Anup Gupta MD, Nexus Venture Partners IndiaShelter Home Loans Thomson Thomas EX-CIO HDFC Life Management Rupinder Singh MD & CEO#11Professionally Managed Company Experienced Management Team with Strong Alignment of Interest with 9% ESOP Pool Rupinder Singh MD & CEO 20+ yrs of experience Ex-Cholamandalam Ashish Gupta CFO 18+ yrs of experience Ex-Satin Micro Finance Sharad Pareek CRO 22+ yrs of experience Ex-Poonawalla Fincorp IndiaShelter Home Loans Nilay CHRO 22+ yrs of experience Ex-Standard Chartered Aman Saini National Business Head 20+ yrs of experience Ex-Cholamandalam Nitin Goel Head Credit Policy 18+ yrs of experience Ex-Cholamandalam Ravinder Dhillon Head - Collections 20+ yrs of experience Ex-Cholamandalam Rohit Gaur Head Product & Strategy 20+ yrs of experience Ex-Cholamandalam Abhinav Arya CIO 17+ yrs of experience Ex-Shubham Housing Mukti Chaplot CS & Compliance 10+ yrs of experience India Shelter 11#12Shareholding Pattern 16.3% 2.1% 1.5% 6.0% 5.8% IndiaShelter Home Loans WestBridge ■Nexus ☐ DII 46.8% ■ Publics & others Key Institutional Investors Investor Key Investors West Bridge Capital^ Nexus Venture Partners^ Madison^ DIIS (MFS, AIFs, Insurance) Nippon Mutual Fund* % Holding 46.8% 21.3% 4.9% 2.0% FII ■ Employees Quant Mutual Fund* 1.7% Axis Mutual Fund* 0.9% 21.3% Baroda BNP Mutual Fund* 0.9% Franklin Templeton Mutual Fund 0.7% Mr. Anil Mehta DSP Mutual Fund* 0.6% Fils/FPIs Goldman Sachs India Equity# 1.0% 300+ employees are covered under ESOP program, comprising: ~10% of the total employee base ~26% of the employees excluding frontline staff Massachusetts Institute of Technology^ Steinberg 0.8% 0.6% NHIT Global (affiliate Loomis Sayles) 0.4% "Holding through various schemes/funds | *Holdings through multiple mutual fund schemes | #including managed funds | as of 29th December'23 12#13IndiaShelter Home Loans About the Company | Business Update Tech, Credit & Risk Financials ESG India Shelter Finance Corporation Limited 88 88#14Industry Dynamics Housing Market Size Segment <0.5 million ị 0.5 million to 2.5 million >2.5 million Overall 18.7 Tn FY19 31.1 Tn R 47 Tn FY23 Housing Loans Source: Crisil Industry Report IndiaShelter Home Loans % LAP Market Size Segment % 2% <0.5 million 5% 35% Focus Segment 0.5 million to 2.5 million 24% Focus Segment 63% >2.5 million 71% 100% Overall 100% 18 Tn 11.5 Tn 8.7 Tn FY26P FY19 FY23 FY26P Affordable Housing Loans 14 Tn 9.6 Tn 5.3 Tn 5 Tn 2.7 Tn ₹ 1.2 Tn FY19 FY23 LAP FY26P FY19 FY23 FY26P LAP (<2.5 mn) 14#15Q3FY24 Snapshot AUM Rs. Crore 5,609 42% YoY 8% QoQ Employees HL | LAP¹ 3,139 Disbursement Rs. Crore 679 36% YOY 6% QoQ States 15 ← Gross Stage 3 1.2% 58% | 42% Secured Book 100% Branches Average Ticket Size² Rs. Lakhs 10 PAT Rs. Crore 55% YoY 62 215 3% QoQ Net Worth Rs. Crore 2,209 In-House Sourcing 98% LTV1 * 51% Investors and Analysts can download the excel factsheet from our website link 1- On AUM | 2 - On disbursement | 3 - PCR - Stage 3 | 4 - CARE Rating (A+ Positive), ICRA A+ (Stable) میرا Net Stage 3 -109bps YoY +20bps QOQ ROA 4.7% 0.9% -90bps YoY +20bps QOQ PCR³ 26.1% Credit Cost 0.3% III ROE 13.9% IndiaShelter Home Loans میرا را CRAR | Leverage 72.3% | 2.6 Credit Rating" A+ 15#16Robust Growth With Profitability Disbursement (Rs. Crores) 36% 1,361 YOY 6% QoQ 679 638 499 40% YOY 1,899 AUM (Rs. Crores) 42% YOY 3,954 8% QoQ 5,609 5,181 PAT (Rs. Crores) 55% YOY 102 3% QoQ 60 62 40 IndiaShelter Home Loans 66% YOY 170 21 53 82 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Co-lending 16#17Consistent Asset Quality Stage 3/ GNPA (%) DPD above 90 DPD upto 90 Stage 3/NNPA (%) 2.3% 0.3% 1.2% 1.0% 0.00% 0.1% 2.0% 1.0% 1.1% Q3FY23 Q2FY24 Q3FY24 30+ DPD (%) 3.5% 3.5% 3.2% 1.8% Q3FY23 Collection Efficiency (%) 99.1% 0.9% 0.7% Q2FY24 Q3FY24 99.2% 99.1% Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 IndiaShelter Home Loans 17#18Maintaining Spreads · Cost of Funds (COF) maintained at 8.8% despite rising interest rate market • Marginal Cost of Funds for 9MFY24 is at 8.6% • In Q3FY24, variable rate loans were repriced upwards by 25bps Yield on AUM | Yield and COF is position as the end of relevant period/year. IndiaShelter Home Loans - Yield ~ COF Spread 14.8% 14.7% 14.8% 8.8% 8.8% 8.5% 6.3% 5.9% 6.0% Dec'22 Sep'23 Dec'23 18#19Extensive Pan-India Distribution Network Geographically Diversified with Contiguous Expansion > 5 years Vintage - 12 states < 5 years Vintage - 3 states IndiaShelter Home Loans Scope for Operating Leverage (Vintage-wise AUM/ branch, Dec-23) Branch Vintage No of Branches AUM (Rs. Crs) AUM /Branch Q3FY24 AUM /Branch FY21 Up to 1 year 45 307 7 1 1 to 3 years 75 1,571 21 14 More than 3 years 95 3,732 39 30 Total 215 5,609 26 19 Low AUM concentration (State - wise Portfolio Break-up, AUM %) Dec'23 Mar'18 Particulars Branches (Rs. Crs) (Rs. Crs) Rajasthan 64 31% 41% Maharashtra 30 17% 20% Madhya Pradesh 26 13% 25% Karnataka 15 7% Gujarat 17 6% 8% Uttar Pradesh 17 6% 2% Tamil Nadu 18 5% Others (8 states) 28 14% 4% Total 215 5,609 801 19#20Customer & Portfolio Demographics December 2022 December 2023 Loan against Property 42% AUM Home Mix Loans 58% Loan against Property 44% AUM 1-ATS on disbursement Home Mix Loans 56% Salaried 29% Salaried 31% Profile Mix Profile Mix Self Employed 71% Self Employed 69% Tier - 3 49% Tier - 3 46% City Tier City Tier Tier-1 10% Tier-2 41% Tier-1 10% IndiaShelter Home Loans >25L >20 to 25L <5L 7% 5% 10% >15 to 20L 12% ATS¹ Rs. 10 Lacs >10 to 15L 26% >20 to 25L 7% >25L 6% <5L 13% >15 to 20L 11% Tier - 2 44% >10 to 15L 24% ATS¹ Rs. 10 Lacs >5 to 10L 40% >5 to 10L 39% 20 20#21IndiaShelter Home Loans About the Company Business Update | Tech, Credit & Risk Financials ESG India Shelter Finance Corporation Limited 21#22Robust Underwriting and Risk Management In-house BRE for analyzing 100+ fields for customer and collateral evaluation IndiaShelter Home Loans Customer Assessment ✓ Background and Business Vintage ✓ Neighbor & Reference Check ✓ Credit Bureau ✓ Lifestyle Indicators Cash Flow Assessment ✓ Business Discussion at Customer Premise ✓ Household visits for triangulation of income, expenses and savings ✓ Bank Statement Analysis ✓ Discussion on End-Use Collateral Evaluation Collateral Valuation ✓ Identification and Occupancy ✓ Geo-tagging/Radial Variances ✓ Local bylaws ✓ Marketability Legal Evaluation ✓ Title check - Legal Opinion ✓ Encumbrance - Title Search ✓ Docs. authenticity - Legal Vetting Controls in Place Risk Management Process ✓ In-house Business Rule Engine ✓ Centralized Risk Containment Unit ✓ Centralized Credit and Hindsight Control Unit ✓ Maker Checker at Critical Processes ✓ Every applicant/co- applicant must visit branch 51% 46% FOIR LTV1 98% SORP ~Rs.10 Lakhs ATS² 1 On AUM | 2- On disbursement 22#23End to End Digital Process for Home Loans Minimizing our carbon footprint through digitization 92% Digital Collections 99% E-Nach Mandates 98% E-Signing IndiaShelter iSales IndiaShelter iCredit IndiaShelter iTech 12 PM 10:05 79% 8:12 PM Dashboard Jaipur Prodcopy ← Applicant KYC Document = My Dashboard Leads Status Pan Card You have unsynced data 27 Feb 2023 AVERAGE TAT This month 2 Days CASES New 5 Voter ID Total Leads. 5 Login Files Follow Ups leads Rejected(MTD) 0 Driving Licence Passport ? Electricity Bill New e-KYC Done 99 CIBIL + login Fee Collected 0 Submitted Application 27 Feb 2023 7 Submitted Application Sanctioned Dis./chq not cleared 0 3 10 3 Partially Disbursed Disbursed(MTD) Rejected(MTD) Customer Acquisition Vehical Rc Verification Mobile Verification Employment Verification Bank Verification EPF Verification Continue III O > > Build your dream home easily with India Shelter MY CASES Q Search.... Planned GRASI MARY S VNO-353543 Assigned: 11 Sept 23 PUNITHA MATHAVAN VNO-354103 Assigned: 12 Sept 23 IndiaShelter iCollect 10:19 S =Overdues Search Overdue Data Sync now all 77% IndiaShelter Home Loans IndiaShelter ¡Serve Welcome IndiaShelter Home Loans Home Loans a AP-10082092 Current 35 Submitted ANITA AJMERA W/O ASHOK KUMAR AJMERA Running DPD 40 5 Due For The Month Pending 28,934 42,786 Total Collectable Payment Collected by ISFC8922 of amount Rs. 28234 on 23-08-2023 at 04:21 PM Enter your new home and say bye to monthly rent with India Shelter Home Loans. AP-10083697 Current KAMLA DEVI W/O PREM CHAND Running DPD View On Map Due For The Month *9,709 Total Collectable 10,528 Not Planned Overdue 3.0 Days Pre-Sanction Scheduled: - 3.0 Days Pre-Sanction Scheduled: Credit Underwriting Collateral Evaluation Payment Collected by ISFC3977 of amount Rs. 9010 on 10-01-2022 at 04:01 PM Apply Loan Loan Status AP-10089549 SHRAVANI DEVI W/O KAJOD PRJAPAT Current Running DPD Eligibility Calculator Due For The Month 13,848 Total Collectable 21,319 Payment Collected by ISFC8922 of amount Rs. 13200 on 21-08-2023 at 09:23 PM AP-10094278 Current KANCHAN DEVI W/O GOPAL REGAR Filter Que For The Month 9,710 Collections Management Our Products Locate Us Customer Ca + Customer Service 23#24Technology Driven Company with Scalable Operating Model India Shelter Home Loans Strong Tech Architecture across Processes Digital Loan Approval Customer 360 view 360° Mobility Solutions Artificial Intelligence Data Capture Third Party Integrations salesforce Tech Enabled Process Multiple Digital Assets Cloud Based Platform and Paperless Approach Extensive database with 100+ data points on customer and collateral profiles to enable robust analytics Geo-tagging of all properties during technical evaluation Investments in IT have Reduced Turnaround Times Login to Disbursement Turnaround Time (Days) In-house Business Rule Engine enables real-time compliance with credit policy and prompt loan approvals Salesforce integrated with downstream/upstream applications including mobile applications 10 7 6 FY22 FY23 9MFY24 24#25Separate Hierarchy Of Key Functions Underwriting Is Independent Of Sales Customer Acquisition İİİİİİ Loan Officers Credit Ops & Cust. Service Legal Technical Collection & Recovery Branch Credit Manager Branch Service Manager Tech. Manager Collection Manager Branch Manager Area Area Sales Manager Area Credit Manager Area Ops & Cust. Service Manager Legal Manager Area Technical Manager Region Reg. Sales Manager Regional Credit Manager Regional Ops & Cust. Service Manager Reg. Legal Manager Reg. Technical Manager Area Collection/ Recovery Manager Reg. Collection/ Recovery Manager Zone Head Office Excludes other functions & HO employees Zonal VP Business Head Field Underwriting Head Head Operations Legal Head Technical Head National Collection/ Recovery Manager Hindsight & Fraud Control Unit Head Credit & Policy IndiaShelter Home Loans Head Collection & Recovery 25#26IndiaShelter Home Loans About the Company Business Update Tech, Credit & Risk | Financials ESG India Shelter Finance Corporation Limited wwwwwww www#27Strong Liability Franchise Diversified Funding Profile and Lender Base Borrowing Mix (Q3FY24), % PTC 2% NCD ECB 1% 6% NHB 16% DA 21% Term Strong Lending Relationships 7+ years Avg. Tenure of Borrowings 38 Loans by Banks & Fl 55% Lender Relationships MF, NBFC, FI & Others Public Private Banks Banks DA - Direct Assignment, NHB - National Housing Bank, ECB - External Commercial Borrowing, PTC - Pass Through Certificates, NCD - Non-Convertible Debentures राष्ट्रीय Key Lenders HDFC U.S. International NATIONAL HOUSING BANK Development Finance Corporation [] HDFC BANK ด ICICI Bank kotak AXIS BANK Kotak Mahindra Bank State Bank of India S Union Bank of India Nippon india Mutual Fund Wealth sets you free IndiaShelter Home Loans B BAJAJ FINANCE LIMITED IndusInd Bank DCB BANK FEDERAL BANK RBL BANK केनरा बैंक Canara Bank IDBI BANK 27 27#28Strong Balance Sheet Consistent Rating Upgrades Strong ALM Surplus Cumulative ALM Profile, 9MFY24, % Outflow Rs. Crs 2023 A+ (Positive)* 256 <3 months 659 915 2022 A+ (Stable) 465 <6 months 749 1,213 2019 2018 A (Stable) A- (Positive) 864 <1 Year 814 1,677 2,250 <3 Year 830 3,081 2016 A- (Stable) 3,219 <5 Year 911 4,130 2015 BBB+ (Stable) 3,429 <7 Year 1,464 4,893 2013 BBB- (Stable) 3,536 <10 Year 2,043 5,579 2012 BB+ (Stable) 3,576 >10 Years 2,168 5,744 ■ Outflows Inflows *CARE Rating (A+ Positive), ICRA A+ (Stable) IndiaShelter Home Loans Inflow 28#29Comfortable Liquidity Position Particulars (Rs. Cr.) Cash & Cash Equivalents Un-availed Sanctions from Banks/FI Total Liquidity Position IndiaShelter Home Loans As on December-23 899 589 Total Available Liquidity of INR 1,488 Cr 1,488 Particulars (Rs. Cr.) Q2FY24 Q3FY24 Q4FY24 Q1FY25 Opening Liquidity 1,488 1,530 1,540 1,553 Add: Principal Collections & Surplus from Operations 296 284 271 259 Less: Debt Repayments Closing Liquidity 254 274 258 259 1,530 1,540 1,553 1,554 1,554 Cr of Surplus Funds* available for business * Without including any incremental sanctions 29 29#30Profit & Loss Statement - Quarterly IndiaShelter Home Loans Particulars (Rs. Cr.) Interest Income on loans Q3FY24 Q3FY23 YOY Q2FY24 QOQ 169.3 125.9 34.5% 159.3 6.2% Net Gain on Direct Assignments 19.9 7.7 23.5 Other Income Total Income Finance Cost 29.2 22.6 27.7 218.4 156.1 39.9% 210.6 3.7% 73.6 57.6 27.8% 71.2 3.4% Net Total Income 144.7 98.5 47.0% 139.4 3.9% Operating Expenses 59.5 45.6 30.5% 56.7 4.9% Pre-Provisioning Operating Profit 85.3 52.9 61.1% 82.7 3.1% Credit Cost 4.1 0.4 5.3 Profit before Tax 81.2 52.5 54.5% 77.4 4.9% Tax Expense 18.8 12.3 53.6% 17.2 9.9% Profit after Tax 62.3 40.3 54.8% 60.2 3.5% Basic EPS 6.8 4.6 6.7 Diluted EPS 6.4 4.5 6.7 30#31Profit & Loss Statement - YTD & Annual IndiaShelter Home Loans Particulars (Rs. Cr.) Interest Income on loans 9MFY24 9MFY23 YOY FY23 FY22 YOY 470.3 345.0 36.3% 476.7 353.2 35.0% Net Gain on Direct Assignments 62.2 23.0 43.9 49.7 Other Income Total Income Finance Cost 84.5 61.0 85.7 56.9 617.0 429.0 43.8% 606.2 459.8 31.8% 212.7 153.2 38.9% 208.7 147.4 41.6% Net Total Income 404.2 275.8 46.5% 397.6 312.4 27.3% Operating Expenses 171.2 132.7 29.0% 181.5 133.5 36.0% Pre-Provisioning Operating Profit 233.0 143.1 62.9% 216.0 178.9 20.7% Credit Cost 13.5 9.4 14.1 12.0 17.5% Profit before Tax 219.5 133.7 64.2% 202.0 166.9 21.0% Tax Expense 49.8 31.4 58.6% 46.6 38.5 21.0% Profit after Tax 169.7 102.3 65.9% 155.3 128.4 21.0% Basic EPS 18.9 11.7 17.8 14.8 Diluted EPS 17.7 11.5 17.5 14.6 31#32Balance Sheet Particulars (Rs. Cr.) Sources of Funds IndiaShelter Home Loans Dec-23 Dec-22 Sep-23 March-23 March-22 Share Capital 53.5 43.8 45.0 43.8 43.7 Reserves & Surplus 2,155.3 1,140.7 1,329.9 1,196.8 1,032.4 Borrowings 3,512.7 2,669.7 3,288.5 2,988.9 2,070.0 Other liabilities & provisions 86.7 132.8 Total 5,808.3 3,987.1 95.2 4,758.7 66.2 75.1 4,295.6 3,221.2 Application of Funds Loan Assets Investments Fixed Assets Cash & Bank Balance Other Assets Total 4,622.0 3,368.4 4,266.1 3,609.1 2,622.5 207.0 284.2 99.6 46.9 175.3 28.9 23.9 25.3 24.3 17.0 777.9 200.4 210.1 507.3 330.3 172.5 110.2 157.6 107.9 76.0 5,808.3 3,987.1 4,758.7 4,295.6 3,221.2 32 32#33ECL Provisions Summary Particulars Gross Stage 3 % Portfolio in Stage 3 ECL Provision Stage 3 Net Stage 3 % Portfolio in Stage 3 Provision Coverage Ratio (PCR) - Stage 3 Gross Stage 2 % Portfolio in Stage 2 ECL Provision Stage 2 Net Stage 2 Provision Coverage Ratio (PCR) - Stage 2 IndiaShelter Home Loans Dec-23 Sep-23 Dec-22 57.0 43.9 79.3 1.2% 1.0% 2.3% 14.9 12.6 18.4 42.1 31.3 60.9 0.9% 0.7% 1.8% 26.1% 28.7% 23.2% 124.0 115.6 70.7 2.6% 2.6% 2.0% 6.5 6.7 5.4 117.5 108.9 65.2 5.3% 5.8% 7.7% Gross Stage 1 % Portfolio in Stage 1 4,562.7 4,214.8 3,311.9 96.2% 96.4% 95.7% ECL Provision Stage 1 24.2 22.4 17.6 Net Stage 1 4,538.4 4,192.3 3,294.3 Provision Coverage Ratio (PCR) - Stage 3 0.5% 0.5% 0.5% Gross Stage 1,2 & 3 ECL Provision Total ECL Provision (%) 4,743.7 4,374.3 3,461.9 45.7 41.7 41.4 1.0% 1.0% 1.2% 33#34ROE Tree & Key Ratios IndiaShelter Home Loans Particulars (Rs. Crs) Total Revenue to Average Total Assets Q3FY24 Q3FY23 Q2FY24 9MFY24 9MFY23 FY23 16.5% 16.1% 17.8% 16.3% 15.9% 16.1% Finance cost to Average Total Assets 5.6% 6.0% 6.0% 5.6% 5.7% 5.6% Spread to Average Total Assets 11.0% 10.2% 11.8% 10.7% 10.2% 10.6% Operating Expenses to Average Total Assets 4.5% 4.7% 4.8% 4.5% 4.9% 4.8% Credit cost to Average Total Assets 0.3% 0.0% 0.4% 0.4% 0.3% 0.4% PBT to Average Total Assets 6.1% 5.4% 6.5% 5.8% 4.9% 5.4% ROA (PAT to Average Total Assets) 4.7% 4.2% 5.1% 4.5% 3.8% 4.1% Leverage (Average Total Assets to Average Net Worth) 2.9 3.3 3.6 2.9 3.2 3.5 ROE (PAT to Average Net Worth) 13.9% 13.8% 18.1% 13.1% 12.1% 14.4% Particulars (Rs. Crs) Q3FY24 Q3FY23 Q2FY24 9MFY24 9MFY23 FY23 Leverage Cost to Income Operating expenses / AUM CRAR (%) 2.6 3.4 3.5 2.6 3.4 3.5 41.1% 46.3% 40.7% 42.3% 48.1% 45.7% 4.4% 4.8% 4.6% 4.6% 5.0% 4.9% 72.3% 46.6% 48.7% 72.3% 46.6% 52.7% Book Value Per Share 207.7 136.5 154.3 207.7 136.5 142.5 34 As funds raised during the IPO remains undeployed, ratios of Q3FY24 and 9MFY24 are not comparable#35Financial Snapshot - 10 years Particulars IndiaShelter Home Loans FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 CAGR (%) Operational Branches 31 33 47 61 64 81 86 115 130 183 States 4 5 7 8 8 12 12 15 15 15 Active Live Accounts 5,304 8,552 12,823 15,730 20,117 24,354 27,602 33,607 43,328 58,552 Employees 255 254 420 523 740 1,126 1,219 1,576 2,200 2,709 Disbursements 77 146 225 236 404 566 551 895 1,295 1,964 43% AUM 117 41 228 399 548 801 1,178 1,520 2,199 3,073 4,359 49% Financial Net Total Income 14 19 45 71 91 Operating Expenses 12 16 33 37 57 Credit Cost 0 Profit before Tax 1 Profit after Tax 1 Networth 62 65 OF WN - 1 1 2 3 2 11 32 32 3 8 21 22 263 351 568 8 W ± w ± Ñ 156 218 312 398 80 85 133 182 12 20 12 14 64 113 167 202 47 87 128 155 69% 848 937 1,076 1,241 40% Ratios Cost to Income 88.6% 84.6% 72.9% 52.4% 62.3% 63.5% 51.5% 39.1% 42.7% 45.7% GNPA 0.2% 0.2% 0.3% 0.7% 1.3% 1.4% 1.3% 1.9% 2.1% 1.1% ROA 1.3% 1.7% 2.6% 4.0% 2.9% 2.7% 3.0% 4.1% 4.5% 4.1% Leverage 1.7 2.9 2.0 1.7 1.7 1.7 1.9 2.4 2.8 3.2 RoE 2.3% 5.0% CRAR 83.2% 44.0% 5.2% 122.2% 6.7% 109.0% 4.9% 4.4% 5.7% 9.8% 12.8% 13.4% 100.6% 91.2% 81.1% 71.5% 55.9% 52.7% 35#36Key Growth Strategies I Ο Grow and Diversify Distribution Network Deepening branch penetration in adjacent markets Improve branch productivity Diversify Borrowings and Optimize Borrowing Costs Enhance credit rating Prioritize long-term borrowings Explore co-lending opportunities Leverage Technology for Scalability and Productivity Enhance lead sourcing Enhance customer fulfilment Internal data models to identify default risk Enhance Brand Equity and Foster Sustainability Increase concentration in Tier II & Tier III cities Enhance brand visibility Focus on positive work culture 56 36 IndiaShelter Home Loans#37IndiaShelter Home Loans About the Company Business Update Tech, Credit & Risk Financials | | ESG India Shelter Finance Corporation Limited 37#38Focus on Social Capital Social India Shelter Nakshatra: Our Educational Initiative Akshaya Patra Foundation (to ensure a nutritious meal for the underprivileged students) Samarthanam Trust for the Disabled (To enhance Government schools in for underprivileged students) India Shelter Nav Jeevan: Our Healthcare Initiative SDGs achieved Customers 2 ZERO HUNGER SSS 4 QUALITY EDUCATION Serving the underserved & unserved segment leading to financial inclusion: 71% EWS & LIG 71% Self Employed 90% Tier II & III 98% Women Borrowers Impact Guru Foundation (to uplift the underprivileged with better healthcare facilities and livelihood opportunities) 3 GOOD HEALTH AND WELL-BEING Bansi Vidya Memorial Trust (to treat leukemia affected children) our healthcare initiative India Shelter Nayi Umeed: Our Women Empowerment Initiative 5 GENDER EQUALITY Mahesh Foundation (for the construction of the new skill centre for girls & women) LANANDA Crusaders IndiaShelter Home Loans SDGs achieved diamus volend ಪರಕಾಲ ಕನ್ನಡ ಹಿರಿಯ ಪ್ರಾಥಮಿಕ ಶಾಲೆ,ಗಾಮನಳ `` ಸನ್ಮಾನ ಶ್ರೀ ಚಂದ್ರಕಾಂತ ಬೆಲ್ಲದ ಶಾಸಕರು ಇವರ ಅನುದಾನದ ಅಡಿಯಲ್ಲಿ ನಿರ್ಮಿಸಲಾದ ಒಟ್ಟು 8 ಲಾ ಕೊರಡು schis adora drog pidad acced dd das 20 O ಜಾವ ದೇಗುಲವಿದು ಕೈಮುಗಿದು ಒಳಗೆ ಬನ್ನಿರಿ. 10 REDUCED INEQUALITIES ImpactGuru Foundation मुफ़्त दवाईयाँ मोबाईल क्लिनिक IndiaShelter "Home Loans 38#39Focus on Human Capital IndiaShelter Home Loans Employees Employee Development & Well Being We prioritize the development & well-being of our employees, ensuring a healthy and balanced work environment. Here are some initiatives we have implemented: Prarambh A Leadership Journey • India Shelter Child Scholarship Program Health check-up Weekly Yoga classes Fitness Community Employee Reward & Recognition: We foster a work culture that inspires and motivates our employees to deliver their best each day. We firmly believe in recognizing and celebrating excellence, creating an environment that promotes healthy competition and rewards outstanding achievements. To achieve this, we have established a robust Reward & Recognition programme that highlights the exceptional contributions of our employees. Here are some key elements of our programme: Long Service Award • ICON Award Performance Award ISFC Got Talent Award . On the Spot Award-Employee Performance Appreciation Program 8 DECENT WORK AND ECONOMIC GROWTH 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE 10 REDUCED INEQUALITIES SDGs achieved IndiaShelter Home Loans Great Place To Work® Certified NOV 2022 NOV 2023 INDIA Employee training & development: 4,900 manhours of training provided in Q3FY24 Employment & labor practice: Multiple policies to create a safe & conducive work environment Employee ownership: 300+ employees are covered under ESOP programs-comprising of 10% of total employee base/26% of employee base excluding frontline staff. Employment generated in tier II, III & IV cities Gender diversity: Diverse employee base consisting of 20% women representation at Board 22% women at HO 39#40Strong Governance Structure GOV Top-tier Corporate Governance: Independent Directors led Board Committees Highly experienced Board and Management Team Company's risk management is driven by Board and its subcommittees IndiaShelter Home Loans Strong corporate governance framework in place for effective risk management Board Level Committees Board of Directors Risk Management Committee Audit Committee IT Strategy Committee Nomination & Remuneration Committee CSR committee Management Level Committees Management Team ALCO Committee Customer Grievance Redressal Committee IT Steering Committee Disciplinary Committee POSH Committee Market Risk Liquidity Risk Credit Risk ICAAP Interest Rate Risk Forex Risk 40#41Awards & Accolades Awards won in 2023 Great Place To WorkⓇ Certified NOV 2022-NOV 2023 INDIA PRESENTED BY (expleo] HOSTED BY QUANTIC Best Brand Building C Housing Financ India Shelter Finance Corporation Lid 2 ... ՈՒ NBFC leader Excellenc Best Workplaces™ in BFSI Great Place To Work. INDIA 2023 GREAT PLACE TO WORK CERTIFIED BEST BRAND BUILDING CAMPAIGN BEST CUSTOMER CENTRIC IT IMPLEMENTATION OF THE YEAR BEST HOUSE FINANCIER OF THE YEAR EXCELLENCY IN TECHNOLOGY IMPLEMENTATION TOP 50 INDIA'S BEST WORKPLACES™M IN BFSI 2023 FINNOVITI AWARD IndiaShelter Home Loans Inclusive Finance Indiat AWARDS AFFORDABLE HOUSING FINANCE COMPANY BEST SDG IMPACT- SDG 8 & BEST SUSTAINABLE FINANCE PRODUCTS AWARD CX LEADER WORLD CX SUMMIT thescon CX LEADER OF THE YEAR Excellence in Corporate Wellness Presented to India Shelter Finance Corporation Limited Organed By EXCELLENCE IN CORPORATE WELLNESS EDITION CORPORATE SOCIAL RESPONSIBILITY SUMMIT & AWARDS 2023 Best CSR Project of the Year India Shelter Finance Corporation WINNER BEST CSR PROJECT OF THE YEAR (expleo) QUAN THI RISING STAR- HOUSING FINANCE COMPANY OF THE YEAR Annud Summit & Awards Runner Up RUNNER UP UNDER THE CLASS OF MID LAYER NBFCS AND CATEGORY OF BEST RISK AND CYBER SECURITY INITIATIVES 41#42Glossary IndiaShelter Home Loans Terms AUM Disbursements Average Total Asset Average Networth Gross Stage 3 Net Stage 3 Net Stage 3 (%) Opex/AUM Cost to Income (%) Operating Expenses Finance Cost DPD 30+ Explanation AUM represents the aggregate of future principal outstanding and overdue principal outstanding, if any, for all loan assets under management which includes (i) loan assets held by us as of the last day of the relevant period/year (ii) loan assets which have been transferred by us by way of securitization or direct assignments and are outstanding as of the last day of the relevant period/year, and excludes the partner's share of loan assets originated and assigned under co-lending arrangements with the partner banks as of the last day of the relevant period/year. Disbursements represents the aggregate of all loan amounts extended to our customers including partner's share of loan assets originated and assigned under co-lending arrangement in the relevant period/year Average Total Asset represents simple average of total assets outstanding at the beginning and end of the relevant period/year Average Networth represents simple average of Networth at the beginning and end of the relevant period/year Stage 3 Assets (Gross) represents gross carrying amount pertaining to loans which are non-performing assets (NPA) as per the Income Recognition, Asset Classification and Provisioning Norms issued and modified by RBI Stage 3 Assets (Net) represents Stage 3 Assets (Gross) less impairment loss allowance for Stage 3 Assets as of the last day of the relevant period/year. Net Stage 3 (%) represents Net Stage 3 assets divided by aggregate of Stage 1, 2, 3 assets net off total ECL provision. Operating Expenses to Average AUM represents operating expenses for the relevant period/year upon the simple average of AUM as of the last day of the relevant period/year and AUM as of the last day of the previous year, represented as a percentage Cost to Income represents Operating Expenses divided by Net Total Income Operating Expenses represents the aggregate of employee benefits expense, depreciation and amortization expense, interest expense on lease liability for the relevant period/year Finance Cost represents the aggregate finance cost for relevant period/year excluding interest expense on lease liability DPD 30+ represents AUM outstanding for more than 30 days after the due date for the relevant year or period as a percentage of AUM as of the last day of the relevant year Collection Efficiency Total amount of EMIS received in the month (including arrears of previous months)/Total amount of EMIs due for the month Leverage Leverage represents the ratio of Average Total Assets to Average Net Worth for the relevant period 42#43Glossary ALM ATS Abbreviation Expansion Asset liability management Average Ticket Size HL IPO AUM Assets under management LAP BPS Basis Points LCR BRE Business rule engine LIG CAGR Compound annual growth rate LTV COF Cost of funds MF Capital adequacy ratio or Capital to risk MIG CRAR assets ratio MSME CX Customer experience NNPA DPD Days Past Due NPA ECB External commercial borrowing Opex Abbreviation Expansion Home loan Initial Public Offer Loan against property Liquidity Coverage Ratio Low-income group Loan to Value Mutual funds Middle-income group Micro, Small & Medium Enterprises Net non-performing assets Non-performing assets Operating Expenses ECL Expected credit loss PAT Profit after tax EMI Equated monthly instalments РВТ Profit before tax Electronic National Automated Clearing e-NACH House PCR Provision coverage ratio EPS Earnings Per Share ROA Return on assets EWS Economically weaker section ROE FIL Foreign institutional investor SME FOIR Fixed Obligation to Income Ratio SORP FPC Fair Practice Code TAT Return on equity Small & Medium Enterprise Self-Occupied Residential Property Turnaround Time FPI Foreign Portfolio Investor UX User Experience GNPA Gross non-performing assets IndiaShelter Home Loans 43#44Thank You For further information, please contact: Rahul Rajagopalan Head - Investor Relations [email protected] | [email protected] IndiaShelter Home Loans