Indiabulls Housing Finance Ltd Q4 FY22 Earnings Conference Call Insights

Key highlights from Indiabulls Housing Finance Ltd (IBULHSGFIN) Q4 FY22 Earnings Concall

Q&A Highlights:

• Kang Zheng of Tahan Capital Management asked if the company has seen any impact on rate of disbursement due to the HDFC Bank merger. Gagan Banga, MD said the merger is a large opportunity, especially on the wholesale side. The merger will have practically no impact on the retail side. On the wholesale side, it’s an opportunity.

• Kang Zheng of Tahan Capital Management also asked about asset quality and ECR provisions falling about 40% QoQ. Gagan Banga, MD said the company will continue to proactively deal, especially on the wholesale side with assets where some sort of correction or intervention is required.

• Abhiram Iyer of Deutsche CIB Centre asked that post the repayment of the USD bond, how much essentially liquidity would the company carry on ballpark basis at the end of May. Gagan Banga, MD replied that the company continues to manage liquidity at about 15% of its balance sheet, irrespective of events.

• Abhiram Iyer of Deutsche CIB Centre also asked about the funding condition in May. Gagan Banga, MD answered that funding from the company’s perspective is to be evaluated both from a flow as well as cost perspective. The flow in May is undisrupted and it is expected to accelerate. On both the availability of liquidity as well as margins, the company should be okay at about 240 bp.

• Abhiram Iyer of Deutsche CIB Centre asked about the decline in interest income. Gagan Banga, MD replied that as the company consolidate its wholesale book (WB), the WB is more remunerative and therefore the impact on the interest line will be a little more than the actual reduction in the AUM or on the assets on balance sheet.

• Abhiram Iyer of Deutsche CIB Centre enquired about the runway of bond repayment. Gagan Banga, MD said that the Board has taken a call that at the start of every quarter, IBULHSGFIN will announce a bond buyback program for that quarter on a regular basis. So one can expect the next bond buyback announcement in early July.

• Nilang Mehta with HSBC asked about assets held for sale going up from INR14 billion last year to INR30 billion. Gagan Banga, MD answered that the company hold a lot of PTCs for all the structured transactions that it has done and some of the PTCs etc. would come in that line.