Any current/future new fundraising through debt or equity?

The company recently completed an equity raise, which is currently benefiting their ROA. Ashish Gupta mentioned discussions with lenders for fresh borrowings and reduction in spreads following a recent rating upgrade, expecting a 15-20 basis point improvement in cost of funds by the end of the financial year. There is an undrawn sanction of Rs. 210 crores from National Housing Bank (NHB) expected to be drawn in Q1 of the current financial year, which will increase NHB funding ratio. While no explicit new large-scale fundraising through equity or debt was announced, incremental debt raising is

Any current/future capex/capital investment/strategic investment?

The company plans to open around 40-43 new branches across 15 designated states in the current financial year. Branch expansion is focused in states where demand is picking up, covering South India, Rajasthan, Madhya Pradesh, and some northern states. Branch additions will be staggered across quarters with 8-9 branches added each quarter. The average number of branches per state ranges from 2-4, depending on market potential. No specific mention of other capital investment or strategic investment beyond branch expansion was provided in the discussed sections.

Future growth expectations in sales/revenue/volumes?

Target loan ticket size primarily between Rs. 5 lakhs to Rs. 25 lakhs, with an average around Rs. 10 lakhs; focus on affordable housing segment showing steady growth, especially in Rs. 5-15 lakhs buckets. Branch expansion plan includes opening 40-43 new branches across 15 states during the year, with steady branch productivity gains aimed at 17-18 disbursements per branch per month. Overall loan book (AUM) growth guidance is approximately 35% annually, driven by a mix of new branch acquisitions and organic growth through increased branch productivity. Emphasis on increasing customer base

Future growth expectations in earnings/operating earnings/profits/EPS?

The company targets around 35% loan growth (AUM growth) for the current financial year. Branch expansion plan includes adding 40-42 new branches across 15 states, staggered quarterly. Focus on improving branch productivity with a target of 17-18 units disbursed per month. Operating expenses expected to improve with operating leverage, with Opex to AUM ratio expected to reduce by 15-20 bps over the year. Credit cost guidance maintained at around 40 bps. Margins expected to remain stable, maintaining a spread of around 6%. ROA expected to stabilize at around 4% in the steady state as leverage re

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India Shelter Finance Corporation LtdQ1 FY24Finance

India Shelter Finance Corporation Ltd Q1 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹769P/E: 17.9Market Cap: ₹9.0K CrSector: Finance

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

→Target loan ticket size primarily between Rs. 5 lakhs to Rs. 25 lakhs, with an average around Rs. 10 lakhs; focus on affordable housing segment showing steady growth, especially in Rs. 5-15 lakhs buckets.
→Branch expansion plan includes opening 40-43 new branches across 15 states during the year, with steady branch productivity gains aimed at 17-18 disbursements per branch per month.
→Overall loan book (AUM) growth guidance is approximately 35% annually, driven by a mix of new branch acquisitions and organic growth through increased branch productivity.
→Emphasis on increasing customer base rather than merely increasing ticket size; organic growth from scaling outreach and sustained productivity improvements.
→Co-lending business is in early stages, with no definitive AUM contribution target yet.
→Stable net interest margins and spreads targeted to be maintained around 6%.
→Management expects operating leverage with operating expenses as a percentage of AUM to decline over time.

Margin guidance

Category 3

→The company targets around 35% loan growth (AUM growth) for the current financial year.
→Branch expansion plan includes adding 40-42 new branches across 15 states, staggered quarterly.
→Focus on improving branch productivity with a target of 17-18 units disbursed per month.
→Operating expenses expected to improve with operating leverage, with Opex to AUM ratio expected to reduce by 15-20 bps over the year.
→Credit cost guidance maintained at around 40 bps.
→Margins expected to remain stable, maintaining a spread of around 6%.
→ROA expected to stabilize at around 4% in the steady state as leverage reaches 3.5x in 18-24 months.
→NHB funding ratio expected to increase to 18-20%, improving cost of funds moderately.
→Earnings growth supported by disbursement and income growth of 30-40%, operating leverage, and steady asset quality.

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Fundraise plans

Yes

→The company recently completed an equity raise, which is currently benefiting their ROA.
→Ashish Gupta mentioned discussions with lenders for fresh borrowings and reduction in spreads following a recent rating upgrade, expecting a 15-20 basis point improvement in cost of funds by the end of the financial year.
→There is an undrawn sanction of Rs. 210 crores from National Housing Bank (NHB) expected to be drawn in Q1 of the current financial year, which will increase NHB funding ratio.
→While no explicit new large-scale fundraising through equity or debt was announced, incremental debt raising is planned as they aim to increase leverage from around 2.5x debt-to-equity currently to a target of around 3.5x over 18-24 months, possibly reaching 5x in the longer term.
→Fundraising activities seem focused on gradual leverage expansion with available credit lines and improving cost of funds post-rating upgrade.

Order book

Yes

The provided document does not mention any information regarding the current or expected order book or pending orders for India Shelter Finance Corporation Limited. The discussion primarily focuses on aspects such as AUM growth, branch expansions, ticket sizes, funding, yield, cost of funds, and asset quality. There is no disclosure or data related to order book or pending orders in the available pages.

Capex plans

Yes

→The company plans to open around 40-43 new branches across 15 designated states in the current financial year.
→Branch expansion is focused in states where demand is picking up, covering South India, Rajasthan, Madhya Pradesh, and some northern states.
→Branch additions will be staggered across quarters with 8-9 branches added each quarter.
→The average number of branches per state ranges from 2-4, depending on market potential.
→No specific mention of other capital investment or strategic investment beyond branch expansion was provided in the discussed sections.

How does India Shelter Finance Corporation Ltd rank vs peers in Finance?

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